Things to Watch for in Early 2008

[charliep]

What are the market issues you will be following this week and what strategies are you formulating.

I note the belated Christmas present the first trading day of 2008. Is $5/bu corn or bean in the teens very far away? Soyoil is above 50 cents /lb (Jan. 2 9:00 am). Canola above $500/tonne right across the board including Nov 2008. New crop western barley at $200/tonne. Loonie just above par. A good start to an optimistic new year.

[agstar77]

We should also watch the rising price of fuel, fertilizer , chemicals and land!

[parsley]

China slapped on an exporting tarrif.

[ado089]

hot off the press, NH3 up $36, urea up $20, 11-52-0 up $80, and sulfate up $25. Note that there is no potash price...can't get any!

[just_wondering]

Cost of labour will be a magor cost to most producers. And good workers will know what they are worth prepare to pay more.

[charliep]

Note everyone is highlighting the cost side. The interesting difference to me is the comment on land. I guess your view is whether you are an owner/investor or someone trying to purchase/rent.

What is happening to land values/rental rates? How many farmers are doing the analysis of what they can get paid for rent/salary versus what they can net off the land themselves?

[charliep]

Also curious on the livestock side. Likely at least one or two of you with cows. What decisions are you/your neighbors making on your cow herd? How much pasture is going to get broke up this spring and seeded to crops?

[charliep]

As far as land prices and rent goes, here in south central AB don't see rent going up as we are some of the highest already. That and a lot of land here didn't get seeded due to excess moisture last year. So it will be a very difficult sell by the absentee landlords to try to raise rents.
As to land values, the highway 2 corridor speculation effect is holding back any farm expansion. Perhaps those that are buying have been bought out by a town or city and still want to stay in the general area. With the price they got they can afford it. The movement of producers here, coupled with a new environment with more proactive ideas on its natural resources in SK I think they will continue to see land prices there go up.
Thankfully the equity in my land is keeping me going, won't have to use it this year, so definitely need a crop and the choice to sell it to whom I please as well.
Eirk

[parsley]

http://www.isteve.com/IQ_Table.htm

[parsley]

Note the difference between East and West Germany!