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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: Haim R. Branisteanu who wrote (107191)	8/24/2014 3:34:20 PM
From: Joan Osland Graffius	2 Recommendations Recommended By dvdw© KyrosL Read Replies (1) \| Respond to of 217865

Being a farmer is not as high risk was one would think. It certainly has risks. I said the farmer will sell forward as much of his crop not all the crop, only what is needed to cover costs. If the price goes up the rest of his crop is profit. The weather is covered by insurance and is part of the cost. The farmer knows what his yield will be, under normal conditions. Abnormal conditions are covered by insurance. There is high investments, but that is also part of the cost and is covered by his/her selling forward. The farmer would certainly sell forward when the market gets out of control, like the Ukrainian situation. When the forward price gets that high and if he has current sell forward contracts he will up grade to the high one. I do not farm my land as I have a nephew that farms our land, 4th generation. Our land has been in the family starting in the early 1880's and has been added to ever since. We have been able to make a profit off the land every year. Part of that is because all the land was purchased with cash and no debt was used increase the size of the land. It all started with homesteading. Our Sugar beet refinery is a co-op and is owned by the farmers. My nephew and some of his farming friends started an eatable bean processing plant, so they have been able to get rid of the middleman. They ship beans to schools and Mexico as well as provide seed. I don't think there are sharks on wall street that mess with this world. The futures are all managed out of Chicago and orders come from buyers and sellers - not to many speculators outside the farm belt playing in the game. One thing to remember is if a farmer can not cover the costs prior to planting, he/she will not plant - plain and simple. We can grow wheat, barley, oats, soybeans, eatable beans,and sugar beets. Some farmers where we are grow sunflower seeds. I am including a picture of our homestead, my brother lives there now and the buildings are used by my nephew to store and maintain his machinery. They all winter in AZ, and my nephew farms land there in the winter and has a son that takes care of summer crop. Also a picture of the land. The trees you see are all shelterbelts.