US farmers have to sell at a loss

[fjlip]

Reasons why grain prices will NOT increase...lots of supplies

Amid mounting bills, farmers forced to sell grain at low prices - Facing mounting bills and nervous creditors, U.S. farmers are beginning to sell off their crop stockpile - sometimes at a loss - and easing a months-long logjam prompted by the lowest grains prices in at least five years. Farmers now looking for cash to pay off debts and buy seeds for next season have been lured to sell by a four percent rise in corn futures over the past two weeks. That rise came after speculators with huge short positions were caught off guard when the U.S. Department of Agriculture (USDA) cut its corn and soybean harvest views on Jan. 12. (REUTERS)

[Oliver88]

Interesting Article.

Have read several articles lately showing farmland values decreasing in Iowa, Indiana and Illinois.

[hobbyfrmr]

They sell their grain below cost of production, but somehow I thought the government puts in the difference in some kind of revenue assurance program.
The way I understand it is, there are only a few ways for a farmer to go under in the US . Overpaying for land and machinery seem to be most common.

[Hopalong]

For farmers in both USA and Canada who have coverage under production and revenue programs, maybe more similarities than differences. Both countries use the programs to get government money into farmer hands.
Dollar value difference may cause distortion short term but would expect things to even out over time.
Trend line yields keep going up and those who advocate government regulation to limit or control production are a minority. Prosperity depends on productivity, some do not like harshness of marketplace but what is a better system?

[ajl]

If the $Cdn had not dropped a lot more Canadian farmers would have to sell at a loss right now as well. Canadian real estate is going down right now as well except that the $Cdn was dropping faster. I don't think we will get that bailout in 2016 so we will be in the same position one year from now.