The grain crisis?

[cowman]

My neighbor finished harvesting two days ago. He had some problems with leaf disease and his barley came up light(70 bu/45 lbs)! Wheat was better. The barley is in aeration bins as it was pretty tough.
Doing some ballpark math he figures he made about $2500/quarter if he doesn't pay himself any labor, interest on his money, or use of his equipment!
He is an older guy and says that is the last crop he will ever grow! The amazing thing is he has a line up to rent his land!
I often wonder how the western Canadian grain farmer can continue with the rising inputs and dismal prices?

[PureCountry]

$2500 a quarter ? He would have gone in the hole if he calculated his input costs of machinery and labor. I don't blame him for renting out his land. He can likely get more than $2500 a year rent without starting one piec of equipment.

[dalek]

I know of guys here who aren't going to harvest this fall because they know as soon as the bank finds out how little crop is in the field, they're done, and they want to hold out long enough to give their families one more Christmas/winter on the farm.

[ALLFARMER]

Glad I rented my land out this year. I feel like I am getting back into control. Payed off nearly all my imput bills. I decided to run the farm in future on a cash basis. Make it pay its own way!
The margins are so slim I feel you can't afford to pay financing cost/ Machinery interest, Inputs interest, Operating loans, Fuel accounts, Parts accounts, Cash advance interest.

Debt & Debt service costs are what kill farms. For me working on paying down debt and kicking the farm into neutral has been the answer.

I hear George Bush is reducing US farm subsidies 60% in the next 5 years. Thats the bright spot in farmings future.

[ivbinconned]

I wonder what Quebecs farm subsidies are today?? Are they still the highest in the world?