As we enter the mid period of this decade one must wonder are we downsizing the beef cattle industry in the USA for many, many years to come. We have lost our export market to Japan and other Pacific rim countries. We have opened the door or (should I say closed the door) to Canada to expand their packing industry. We are looking at very high land prices for all of production Agriculture. Farmland in Illinois is going for over $5000+@ acre. A rancher in OK told me last week that grass land was $700.00 @ acre and it takes 12-15 acres to run a cow/calf unit. I guess that makes Illinois Farmland look like a bargain at 5 grand @ acre :roll: . The questions I have are "just where the hell are we headed in this Agriculture Industry. Cow/Calf, Stockers, Feeders, Grain , etc......The USA runs on Agriculture and Energy, as well as other developed countries, I cannot see the US and the other developed countries keeping this deal together much longer. Will we see grass land go ungrazed, farm land go unplanted, feedlots half full????? Is this the time to sell out and keep your "powder dry"? Farm land at over $4000.00@ acre will NOT work, Grass land at over $700 @ acre will NOT Work, 1200-1500+ bred Cows will NOT work........we have the potential for a very volatile grain market this season........I think we have way to many producers and growers that have not really figured their cost of production this year. I just paid $440.00 @ ton for anhydrous ammonia!!!! I don't know if I will stroke or have the "big one"!!
We have the issue that Packers may move a portion of their harvesting operations to Canada. Those jobs will not return any time soon. We have an auto indusry in the toilet. For example GM stock has devalued 75% in 4 years. Ford and Chrysler are in trouble. I am trying to be optimistic, but this deal looks like a helluva wreck in the making.....what do you folks think?? As for the Canadian border deal.....stick a fork in it!! Canada is going it alone and rightfully so. Our leaders cannot make a deal in a Monkey "Cat" House with a basket full of bananas!!! :roll:
We have the issue that Packers may move a portion of their harvesting operations to Canada. Those jobs will not return any time soon. We have an auto indusry in the toilet. For example GM stock has devalued 75% in 4 years. Ford and Chrysler are in trouble. I am trying to be optimistic, but this deal looks like a helluva wreck in the making.....what do you folks think?? As for the Canadian border deal.....stick a fork in it!! Canada is going it alone and rightfully so. Our leaders cannot make a deal in a Monkey "Cat" House with a basket full of bananas!!! :roll: