Why do guys who grow 60-70 bu canola, and 70-80 bu wheat hold onto product and complain how bad prices are? If there’s no profit in those yields you better re-think where your money is being spent.
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The market is screaming that there is too much grain in the world and not enough cattle.
Grain producers in the drier parts of the prairies are pointing out that the high inputs intensive grain production model is not working at these prices and in this weather cycle.
The solution to both problems looks really simple in theory.
Too bad the barriers to entry are so high with the current price of bred cattle, the complete lack of remaining cattle infrastructure, the cost and time of converting back to grass or hay, the time delay between buying a cow and selling her first calf, the legacy of high priced land based on the high inputs production crop model. Etc.
Lots of discussion about crop insurance here lately. I often wonder how much of the current problems a direct result of the availability of subsidized crop insurance.
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An interesting quote I read somewhere a few weeks back. The guy said " it would be smarter to walk the grain off the farm than hopper it " or something to that effect.Originally posted by AlbertaFarmer5 View PostThe market is screaming that there is too much grain in the world and not enough cattle.
Grain producers in the drier parts of the prairies are pointing out that the high inputs intensive grain production model is not working at these prices and in this weather cycle.
The solution to both problems looks really simple in theory.
Too bad the barriers to entry are so high with the current price of bred cattle, the complete lack of remaining cattle infrastructure, the cost and time of converting back to grass or hay, the time delay between buying a cow and selling her first calf, the legacy of high priced land based on the high inputs production crop model. Etc.
Lots of discussion about crop insurance here lately. I often wonder how much of the current problems a direct result of the availability of subsidized crop insurance.
I have seen way too many miles of fence tore out that would have provided opportunity to have a mixed farm and decide which makes more sense. Or at least allow for some additional income from fall grazing.
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While I realize I am a hypocrite for advocating one thing while we have gone to straight grain in a traditional cattle area. (A decision which had more to do with happy wife, happy life then anything economic...)
But I have gone under the assumption that inevitably cattle will be part of this operation again at some point. Kept perimeter fences in place whenever possible. Kept much of the feeders and panels cattle sheds etc.
Bringing cattle back may be the way for the next generation to get a foot in the door.
But not at these prices.
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Unfortunately there are no carrots, only sticks. Beef is the one industry they don’t have control of. I was told over 20 years ago by a top level ag bureaucrat that the plan was for vertical integration. All their policies since BSE have been towards that IMV.Originally posted by SASKFARMER View PostChina can now take our beef but if we don't build the Canadian beef herd won't this just lead to increase in Canadians prices.
I think we need major incentives to grow the herd. Am I wrong, lots of shit was broken in SW Sask to grow nothing.
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That's what kids are for. Then they are just pissed when they leave high school, get actually paid for the work they do at a real job. Then the farm gets sold , they inherit some money and enjoy life, along with their parents.Originally posted by blackpowder View PostThere is no chance in hell that anyone with the money to go back in to cattle would ever do so without someone else doing the work.
win win??????
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