Listened to the farm market report from standard grin yesterday and he was saying that Brazil is going to develop an additional 99 million acres of farmland in the next ten years. That does not bode well for grain prices.
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I wouldn't worry to much about that.... Be more worried if the loonie left is still in charge here in 10 years!!!!
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And much greater need for fertilizer to make it produce in the first place.Originally posted by Taiga View PostIt’s a lot of work and cost making farmland here, I wonder how it compares with down there with much bigger bush and trees and stumps
And complete lack of infrastructure to get the grain to port.
And no winter and frost to break disease/pest cycles and compaction.
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Add to that all of the political obstacles. Corruption, squatters, security costs, currency fluctuations, tax burden when ag is the only tax base, the threat of nationalization. No domestic supply of most of the required inputs, high interest rates, no safety nets.Originally posted by AlbertaFarmer5 View PostAnd much greater need for fertilizer to make it produce in the first place.
And complete lack of infrastructure to get the grain to port.
And no winter and frost to break disease/pest cycles and compaction.
I maintain that our COP can and should be lower than South America. We just choose to bid up land costs instead.
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Are you talking about canuckistan or brazil? Oh forgot to add: weather that wants to kill you in the case of canuckistan.Originally posted by AlbertaFarmer5 View PostAdd to that all of the political obstacles. Corruption, squatters, security costs, currency fluctuations, tax burden when ag is the only tax base, the threat of nationalization. No domestic supply of most of the required inputs, high interest rates, no safety nets.
I maintain that our COP can and should be lower than South America. We just choose to bid up land costs instead.
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Exactly! Same as worrying about Russia eating our lunch. I don’t want to get complacent neither but a lot of these expanded acres aren’t exactly prime. Brazil requires a shit ton of potash to grow anything on decent ground let alone anything about to be broke. Cows are getting pushed into the forests as pampas are getting broke for beans and corn. Any expansion in Russia or better description Siberia should really be cow grazing land. It isn’t exactly great farmland with low nutrients let alone short seasons. All factors are at play here.Originally posted by AlbertaFarmer5 View PostAdd to that all of the political obstacles. Corruption, squatters, security costs, currency fluctuations, tax burden when ag is the only tax base, the threat of nationalization. No domestic supply of most of the required inputs, high interest rates, no safety nets.
I maintain that our COP can and should be lower than South America. We just choose to bid up land costs instead.
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I think Brazil has a huge problem with productive land being gobbled up by cane which goes into ethanol production.
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