# Last year for $6+ corn?



## Vol (Jul 5, 2009)

Will this be the last year for $6+ corn??........probably.









http://www.agweb.com/article/ethanol_slowdown_ahead-new_demand_source_needed/

Regards, Mike


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## haybaler101 (Nov 30, 2008)

It all depends---mostly on weather for this next year. If everything comes off perfect across the country, which rarely ever happens, then corn will probably be under $4 by this time next year. Any weather scares at all, which are already starting in western IA, Southern MN and Nebraska plus South America, then you are probably going to see the highest priced corn we have ever seen before harvest. Had an interesting chat with a couple of guys from Argentina at the NFMS in Louisville last week. Conversation was strained because their English wasn't too good and my Spanish doesn't exist, but I did find out that their corn crop is 40 to 50% damaged at this point and they export 80% of their total crop. This is a lot worse than our wonderful USDA is telling us at this point and means higher prices from exports for us. The USDA is still not reporting last years crop where it should be and we are starting to see local cash bids at 20 to 50 cents over Chicago for the summer months.


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## mlappin (Jun 25, 2009)

Vol said:


> Will this be the last year for $6+ corn??........probably.
> 
> 
> 
> ...


Yeah, I've seen several credible articles on how you'd better enjoy while you can as it could easily be back in the $3 range. I don't mean to be an ass or anything, but I'm looking forward seeing those that thought it'd be at $6 + forever make their rents at half that price.


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## swmnhay (Jun 13, 2008)

Was just watching Ag Day this morning.The drought map for Mn,SD and Iowa.This is the best ground of Mn,SD and NW Iowa.This weather patern has to change or we are in a world of hurt here.Weatherman just said we've had 3" of precip since Aug 1.

It also sounds like eastern guys might be dealing with mud again.

I don't see a normal crop again for this yr unless the weather cooperates a little better.


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## swmnhay (Jun 13, 2008)

mlappin said:


> Yeah, I've seen several credible articles on how you'd better enjoy while you can as it could easily be back in the $3 range. I don't mean to be an ass or anything, but I'm looking forward seeing those that thought it'd be at $6 + forever make their rents at half that price.


They will just file bankruptcy.Or whine to the landlords and get rent reduced.Maybe get a write off?Stick the suppliers with bad accounts.


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## NDVA HAYMAN (Nov 24, 2009)

Corn prices will always follow the weather and our competitors. Mike


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## steve IN (Jan 13, 2010)

Cant wait. I still believe this will be a transition year with lower prices and next year lower prices and high inputs cost. I know one young kid bought a $40,000 tractor for his 83 acres ,OOPS I mean 32 ,he just rented 51 to a dairy for silage.Banks must be different now. When I started I had to use kneepads and kiss my bankers ass for a $5,000 loan for an old pickup truck.To quote Dicken's "It was the best of times, it was the worst of times."


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## swmnhay (Jun 13, 2008)

steve IN said:


> Cant wait. I still believe this will be a transition year with lower prices and next year lower prices and high inputs cost. I know one young kid bought a $40,000 tractor for his 83 acres ,OOPS I mean 32 ,he just rented 51 to a dairy for silage.Banks must be different now. When I started I had to use kneepads and kiss my bankers ass for a $5,000 loan for an old pickup truck.To quote Dicken's "It was the best of times, it was the worst of times."


Thats how the banks were in the late 70's also.Go in for a operating loan and get told you needed to trade eq.

I know guys that went to town to buy a pickup and came home with 2.They made the paper a couple yrs later over $1M in debt.

Another put up a hog barn and they closed him down before the first pigs were finished.

What I'm saying is that everything changed fast then and could again now.


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## mlappin (Jun 25, 2009)

swmnhay said:


> Thats how the banks were in the late 70's also.Go in for a operating loan and get told you needed to trade eq.
> 
> I know guys that went to town to buy a pickup and came home with 2.They made the paper a couple yrs later over $1M in debt.
> 
> ...


My banker does that to me all the time, she keeps asking "sure you don't need more" when we do the yearly review. Keep telling her I don't need a larger line of credit for my operating loan.

Or when I was replacing hay equipment she'd ask if I was sure I didn't want to buy new instead of used. Told her I had plenty of time to look for equipment as what I had was still very reliable so didn't need to buy the first thing I found. With used I could comfortably afford it regardless of what the markets might do where buying new would have put a huge dent in my rainy day funds.

I can easily see how someone could quickly get in over their heads.


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