Well at least I know after an absolutely depressing week of watching the the milk, corn, and soybean markets dropping and getting in a fight with my husband ( pick you can buy 40 acres of land or a combine, but not both!) I can come on hear and read the newest responses and actually smile.
Found out today a large 2,500 cow dairy that contracts to the twin cities school district is dumping all their milk. They will get paid through the end of May and then they will be in a world of hurt. Three small creameries in the state have told farmers to cut back production 10-25% that ship to them.
When all the ethanol plants are shut down I don't want to know what happens to the corn price. I know someone a few years younger than me that penciled out buying his father's farm. He used 3.15 cent corn for his lowest price. I suggested he drop that number to 2.50. He said I was nuts that there was no way it would ever get that low again. That was 3 months ago. He bought the farm the end of January. We hit 2.83 here on Friday and he called me up and wanted to borrow my crystal ball. He said how did you know. I said welcome to farming. When you think it can't get worse just wait it can.
It won't be just bars, restaurants, and tourist companies that take the hit. If this goes on for much longer an allready hurting agricultural community will start to collapse. I know 15 dairy farms personally that needed two years of $17 base milk to get on their feet. Not 6 months and then into the $12 range. I guess we will see what happens.
Have a good morning!
