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Are you making a killing on meat and AG prices or is the cost of fertilizer, feed and fuel taking away from the profits?

Some of both Jake, some years we lose money.

Fuel is killing margin….. but it averages out with the under $2 diesel we bought two years ago. We’re just hoping the consumer keeps spending.

We bought our inputs before, next year?

It won’t be this year that’s a killer, it will be next year I’m guessing. If you can’t pay off this year’s operating expenses in the fall, good luck getting a loan for next year.

Next year is going to suck. Already talk around here that Anhydrous is going to be $2000 a ton . After we burn up all the cheap fuel this fall that we bought 2 years ago its going to be ugly. I'm sure the landlords will want to raise cash rent for next year because the markets are so high. And don't forget about the flex ground rents that go off the market prices. I'm not bitching, it just raises the stakes and we have to borrow more money to make up for the higher input cost .

I dunno.

I don't sell meat. I sell beef cattle.

Feeding every bite, expensive feed and hay due to fuel prices and inflation.

Shortages due to drought.

Market may wane ahead of reactionary selling due to the drought.

Feeder calves were higher a few years ago.

Might get by this year without having to sell the herd. If I don't sell, I'm sure not even going to break even on the calves. If I do have to sell the herd, I'll take a bad loss.

This is the reality of ranching today.

I'm an optimist.


If it rains we should make a killing. Not kidding.


Wheat is at 15 year highs and cattle are climbing.



Were sitting on some 2 and 3 year old wheat that is in storage and in the elevator. Unless Biden pulls a Jimmy Carter and fuucks up the export market we should do okay.

Had to sell about 15% percent of our cows and spent $75k on extra feed but I think it's gonna pay off.
(my parents and I, not all my bill)

If it rains.....



Should add, my wife got a 25% raise for her town job, that doesn't hurt....lol



But we're gonna keep driving old pickups and tractors and lay back in the weeds.

The fuel is our biggest killer.

We buy feeders and finish them. The price of feeders has been going up, so the margins are starting to get tight. But the cost of fuel is sucking out any profit.

We also usually sell quite a bit of hay. Not sure if it makes sense to chase the hay all summer(with the cost of fuel) Then hope that people can afford to buy it and we can afford to truck it.

If you can’t figure out the answer to that question I’m thinking you shouldn’t be walking around in public!

I own 2 rice/soybean/wheat farms which I rent to 2 different farm families. Both have been renting these respective farms for many years, one for over 35 and the other for 12 years. I normally give each a 3 year contract. One’s contract expires at the end of 2022, and I just gave him a new 2 year contract for 2023 and 2024. I will raise the rent at the end of that contract. My other farmer has 2 years remaining on his contract. I plan on raising his rent also. I’m surrounded by farms and know exactly what they are facing every year. As a landowner/landlord I am also aware of rising taxes, increasing land values, and the fact that farms get rented by other farmers well before the word gets out that a farm will be available for rent. It’s a business.

What the hell are profits? LMAO

They should be thrilled at the least of the higher rent

My 3 little bags of Seven dust are $11 each.

So….yeah

I should have been stock piling carbaryl dust when I was buying cannabis sativa aka the chronic

No. We are probably screwed.


Like bad.


We did get some rain. First actual rain since May of 2020.

Now we will spend too much money on ridiculous input costs and go broke.


We were just doing the bare minimum before. Now we gotta go spend the big bucks.

The old farmer loses three crops a year, we've not lost the first one yet.

Figure on the cow calf deal.

3 ton of hay per year per pair.

Pasture fees

Fertilizer

Bull cost

Fence/straw/mineral/vaccine/deworming

Get one calf weighs 550?

More like 0.85 calf due to mortality/morbidity

$300 dollar hay it gets fugly.

U gonna need north of $2 a pound 4 the skipper

The deal is producers bale their own forage so they don’t figure that hay costs them as much as they could sell it 4

"Live poor, die rich."

Pretty true