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I wonder how much prior boom times have an impact on farmers because prices on the crops have just languished for years now. 2008 had very aggressive price app
by sdljfslkjfdsj 9y ago
I wonder how much prior boom times have an impact on farmers because prices on the crops have just languished for years now.
2008 had very aggressive price appreciation in corn & beans. Same can be said for late 2010, all 2011, all 2012, & early 2013. After that prices have absolutely fallen off a cliff & continue to hover near those lows every single day.
I suspect it's difficult to be in the "risk management" business which farmers are by being "long" the crop in the ground & having no price appreciation for years. Meanwhile all other risk assets continue to explode higher. At some point it probably becomes challenging to find a light at the end of the tunnel. Now with rising interest rates the cost of capital is higher & likely going to accelerate higher.
Higher operating costs (wages & debt service) & continually deperessed prices of the product you produce. I don't have a solution for any of this but by putting myself in those shoes it sure does seem horrible.