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Non-Tech : Farming
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To: E_K_S who wrote (4281)3/5/2023 4:25:24 PM
From: robert b furman1 Recommendation

Recommended By
E_K_S

   of 4440
 
Good Morning E_K_S,

I think the demand for fertilizer is quite steady.

I remember last year, when fertilizer was quite high, as was natural gas.

The reality is there is only so much ag land in the US.

Farmers will plant the land they have regardless of input costs rising.

They do have weather restrictions that delay perfect timing planting and also must follow crop rotation strategies.

Bottom line if you have a 1 million dollar combine, you need to have a certain amount of land to make it pay for itself.

Generally farmers are an optimistic bunch.

If input prices go up, they hope for higher finished product pricing.

USDA will give them crop loans, while requiring hedging and crop insurance as stipulations.

As more and more of the CRP land is being withdrawn from the program as growing ag products now pays a hefty multiple of what the government paid to keep it idle, there is a somewhat growing acreage to plant. I suspect the satellite based no till seed drills do save some fertilizers, but I think it is probably splitting hairs as to a final change.

Like the farmer who leases my land for his Dairy Farm. I put the seed in the ground and the rest is up to GOD. The weather after seeding and up to harvest, is the big variable and that can be the biggest factor on harvested crop prices.

An old timer once told me "farming is the only business you can do things perfectly right and still go broke". Never forgot that.

Bob
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