"Balance Sheet Deterioration" – Midwest Ag Economy in Full Blown Recession



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0:00 Ag Recession
3:55 Midwest Heat
6:58 Brazil Acreage
8:20 Argentina Acreage
9:49 Corn Sold to Mexico

Here’s the latest scoop on the grain markets and farmer decisions:

🌾 Farmer Adjustments:

Price Pressures: With grain prices under pressure due to projected bumper crops, farmers are facing tough choices. Many are scaling back on fungicide and fertilizer use and delaying investments that could boost productivity and earnings.
Financial Impact: In Illinois, farmers could lose up to $118 per acre for corn and $81 per acre for soybeans this year, as highlighted by a recent WJS article HERE.

🌞 Weather Impact:

Hot and Dry Conditions: A heatwave and minimal rainfall across the Corn Belt have pushed up grain prices slightly. Corn, soybean, and wheat futures rose on Tuesday due to the unfavorable weather forecast. However, prices are still at their lowest levels in 14 years compared to other commodities, weighed down by abundant global and domestic supplies.
🌍 Global Acreage and Production:

Brazil: Soybean acres in Brazil are expected to grow at their slowest rate in over a decade. Despite this, COFCO forecasts a record 168 million metric tons (mmt) soybean crop for the 2024/2025 season, up 14% from the previous year. Soybean acreage is being reduced due to prices near four-year lows.

Argentina: Significant increases in soybean acres are expected as Argentine farmers shift from corn to soybeans due to leafhopper damage. The Rosario grains exchange predicts a 4.9 million-acre reduction in corn planting, with a substantial portion shifting to soybeans. There’s also a possibility that a harsh winter may have reduced the leafhopper population, potentially moderating the expected decline in corn planting.
🌽 USDA Flash Sale:

Corn Sale: On Tuesday, US exporters sold 127,760 metric tons (5 million bushels) of corn to Mexico for the 2024/2025 marketing year. Despite this, total new crop corn export commitments are still among the lowest in the past decade.

Stay informed and adapt to the changing market conditions! 🌽📈🌍

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30 thoughts on “"Balance Sheet Deterioration" – Midwest Ag Economy in Full Blown Recession”

  1. Land prices still crazy here. $14-23k north central IN depending on size and if there are buildings. Recent sale 60 acres with approximately 54 tillable. Older house and 2 buildings that are decent $1.4m. A lot of Amish demand driving prices it seems.

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  2. Is there a website where you can find out what the price of grain PER BUSHEL IN China and Brazil is. Also would like to know what the freight would be for 100,000 bushels shipped to Fort Dodge Iowa from Brazil. Keep hearing we can't compete with Brazil but I happen to think that is not true.

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  3. I had been looking at used grain drills the last two years and there hadn't been much for sale. Now it seems people are trying to liquidate extra equipment as there are lots for sale now. I think the fascinating question to think about is what do farmers intend to do next spring if we stay sub 10.20 soybeans and sub 4.20 corn? Do you plant anyway going into a negative outlook?

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  4. If you want this to continue to be a disaster, vote for the giggling woman who doesn't know shit about anything. She and her Marxist socialists will do not a thing to help.
    Unless your one of the 20M who are here illegally to vote for her. Then your golden.

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  5. All of my beans were planted in june. 95 degrees with no beneficial rain in the past 30 days. The top end has been destroyed. A good rain in the next few days is desperately needed in my area of Illinois.

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  6. I'm a farmer and I don't want any fucking Rain I make really good money in a drought These other farmers that are b***** about the price, but they wanted rain.What do you think prices do when it rains a lot and you have good crops Make sure the fuck don't go up Is drought is a good thing I hope we have another one next year

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  7. Another nice rain in Northern Missouri. Ag economy for the cattlemen. Is great. Row crop farmers who contracted at a good price. Are setting good. Farmers who thought 2022 crop prices were staying at a Record price. Are hurting. Put options saved my as#.

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  8. With Brazil growing record bean crops every year plus expanding acres every year, domestic corn production being met head on with policy issues (45z etc) and the Russians dominating the world market in wheat, where does the US ag producer turn going forward? The carbon pipeline, if finished, will kick the can maybe 10 years. Nobody wants to buy from us, even when we are the cheapest source. Seems our only option is to hope for drought.

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  9. Where are all of the checkoff people and what are they doing to help this situation? Seems all they do is take the farmers' money and the farmers' get this type of price. Been happening since their inception. Back when we could I used to get all my money refunded. Grifters in my opinion.

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  10. Farming is the only profession that really has little control over input costs little over any other costs.none on what the market chooses to pay for it.an dependent on GOD for the weather to grow it.mistakes or drought makes and breaks.Thanks for keeping up on all the goings on.

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  11. Up date from ND. Spring wheat very wet. Don’t dry. Drying poor quality wheat so we can sell it for 3.50 bushels. Protein and falling numbers not good. Losing money on 85 bushel wheat. Working another year for nothing.

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  12. South America kicking our butts in beans and corn, Russia kicking are Butts in wheat…Is it finally come home to roost,the last 40-50 years we,ve been running around teaching other countries how modernize there farming practices, for higher production.

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  13. Do the loses stated per acre include payments from the federal government who revenue is under 750k.

    The platinum pickup numbers at the local dealer still look good. No trouble selling them yet.

    The 8RX aren’t backing up at our local JD shop yet.

    Why the somber tone???

    Savings accounts still overflowing and checks from uncle Biden still rolling in!!!

    Reply

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