Fertilizer Market Report - Looks like trouble ahead...

[boarderbloke]

anyone think this might have something to do with markets over the next 2-4 yrs or maybe 20-30 yrs!
more at smalldeadanimals.com (April 30th)

[cottonpicken]

Your right boarder.

Sask didnt you just buy a bunch of land and combines?

The land probably increased more in value than money in the bank.The combines may have increased to.I know the sprayer i bought last fall has.

Tom is also right,dont take on what you cant handle.

But saving money??????????

[charliep]

I suspect SK3 is not talking about saving money but rather how you use. Not relying 100 % on operating credit to put in a crop but rather using some of your own money. Not using up working capital by paying cash or making large down payments on fixed assets like land and machinery. Knowing the financial ratios on your farm and understanding that leverage is good thing in good times but can kill down the road.

Finally, depending on your age and business goals, it may not be such a bad idea to have an investment portfolio from the extra money I assume you have made in 2007 and plan on making in 2008. The most successfull farmers I know used profits to establish an investment strategy outside the farm. They did this to maintain a healthy balance sheet.

[SASKFARMER3]

No I have one more year of Dep in combines so will keep till 09, their ordered. But yes the land I bought last spring is worth 140% more if the latest sale one mile away is a good comparison.
But I believe last year was the year to buy. What I am saying is pay down debt yes buy certain equipment that's needed but paying down debt should be a priority. But for any one looking at
a grain cart order and buy now going up 17% tomorrow on any factory orders plus most dealers are getting half what they ordered.

[Hopperbin]

Sask I think the high point could be 08.
If I grow an average crop 08 pencils out better than 07 even after a 50 percent increase in fertilizer cost with the fertilizer paid for by the end of the year.
Cotton I think paying down debt would be the same as saving money.

[SASKFARMER3]

Charlie for once I agree with you. Yes you hit it on the nail.

[SASKFARMER3]

Our 07 crop was excellent so It could be achieved with normal growing conditions again and yes if prices stay where they are it will be huge. Inputs going up is a concern when no crop is produced.

[jensend]

http://biz.yahoo.com/nytimes/080430/1194770341872.html?.v=6