So True

Some times things are going on that I have no way of relating to people who aren't in the agricultural business. <a href="http://www.billingsgazette.net/articles/2007/10/14/news/business/20-costs.txt">This story about rising prices for agricultural producers</a> is one of those things. It very clearly explains how rising production costs are really eating into any money we might be able to make in the business. The real scary thing is what is going to happen when commodity prices crash.<br />n<br />nBelieve me, this is going to happen. With wheat prices up the way they are, everybody and their dog is planting wheat or going to plant wheat. Then there will be an overproduction scenario if not next year, the year after and then the wheat farmer will be in trouble again. Not only wheat, but other commodities can, and will, see the same scenario playing out in the next few years. The article points out more than once the production cost increase/commodity price drop of the 1980's and how we might be going to see a replay of that scenario. It won't be pretty out here if that happens.<br />n<br />nSo far the rancher hasn't been tempted by this production increase for some reason. I've talked about it a couple of times that the US whole herd numbers aren't going up like you would expect them too with cattle prices fairly high like they are. I'm not sure if the drought is the cause of that or that ranchers are brighter than the normal producer and don't want to get in an over production/price drop scenario. I just hope ranchers stay out of the big expansion scenario. I actually think they might because while prices are up some for livestock, they aren't up as big as the increases for other commodities so the desire to expand big isn't as great.<br />n<br />nAll I know is that things aren't getting any cheaper out there. Hell, I really note grocery prices going up along with every thing else causing a squeeze on cash flow around here. Over the years I have instituted a few things to lower my production costs but I am at an end of that for now. I'm out of ideas on how to lower costs and become more efficient. Trying to move to an organic, grass fed or any other specialty type operation might, I repeat might, bring more money in, but I guarantee that my costs will go up more than any money I bring in so they aren't worth it.<br />n<br />nAll I can do is struggle along. Keep fighting the good fight and making a living here on the prairie. It gets real tiring sometimes. I can't tell if that's the reason I am in a funk or if it is my normal fall funk. We'll see. All I know is don't blame the farmer and rancher for higher food prices at the store. We might be getting a little more money for our products, but our costs are up as well so we are in the same boat as everybody else. Our heads are barly above water and we are struggling too.<br />n<br />n<strong>We may have all come on different ships, but we're in the same boat now. Martin Luther King, Jr.</strong>