Brace yourselves, feed prices are going to rise!!!!

[Lazy J Farms Feed & Hay]

American Agriculture is travelling in new territory. On Friday corn and soybean futures on the Chicago Board of Trade hit all time highs, in fact corn and wheat limited up. The result is that feed companies and livestock producers will be paying twice as much for commodites compared to merely 18 months ago. In August 2006 the average price for corn in Iowa was $1.86/bushel, on Friday the cash bid for corn at Heartland Coop in Des Moines was $4.61 a 147% increase.

Right now the futures markets are trying to "buy" acres for next year's soybean crop. This has pushed the crop prices up. Then Thursday night the USDA announced some huge corn purchases for export, these are combining for a "perfect" storm. Unfortunately, these gains have not applied to the meat and milk markets.

So prepare yourselves and your customers for upcoming increases in feed prices.

Jim

 

[PurpleChicken]

Thanks for the heads up.

For those who speculate this looks like a good time to be a contrarian
and sell a few puts.

 

[Rosalind]

I'm glad you posted this now, while I am planning this year's garden. Yeah, I know it doesn't help me until late summer, but at least now I can recover some this year.

Why, do you think? Oil prices catching up?

 

[jab91864]

Nothing ever goes down does it.... well the value of a dollar I guess.

Julie

 

[LoneCowboy]

No no no, the government says there's no inflation, that it's handled, that's it's only running 2% a year You must be wrong, our government would never lie to us.

Fetilizer is up huge, seed is up 20%, fuel of course everyone knows is up. Food is up in the stores already. I wonder, what exactly our government is measuring that isn't going up. Oh, I know, they are measuring wages.

 

[SeaChick]

Commercial fertilizers are probably up because they are made of petroleum products, and oil, as we all know, is up.

Organic fertilzers are the same cost.

Just compost your chicken poop and you won't need petrochemicals!

 

[Wildsky]

Now might be a good time to ask those who mix their own feed - how do you do it?

I've got corn on my list of plants for my garden this year..... it grows really easily so might be the ONLY thing I have growing

If I can produce even 50% of the chickens food I'd be thrilled - but I don't want it all to be "CRACK" corn ....

I am planning on buying seeds for grass/hay so I can feed the horse and goat partially as well.

 

[jeaucamom]

Well hopefully, unless I am mistaken, the farmers are finally getting paid a higher, decent and fair price for all their hard work. Maybe more of them can stay in business and we won't have to import as much, nor be losing precious farm land. I won't mind paying more if that is the case, but I may be looking through my rose colored glasses right now

 

[Wildsky]

Quote:
They SHOULD stop growing GM corn, that way they wouldn't have to keep buying the seed. They should also rotate crops so they don't need to apply all that crappy fertilizer (petrochem) and if they keep chickens and cows and such, they wouldn't have to do much spreading fertilizer.....
Farmers need to go back to the GOOD old days...... stop OVER producing CORN.......
(ok I'll shut-up now)

 

[johnnyjack]

my local feed supplyer has raised prices 2dollars on a 50lb bag in the last year but i understand this. being raised on a farm all my life. fule prices,seed prices,labor,utility prices,power,bags, shipping has realy jumped. and most of all here in south carolina has been the lack of rain.our feed mills around here are paying to have the grain shipped in from other states,it was realy dry here last summer. so i realy cant say much.just think of what its gona be like in another 10/ 20 yrs if the world last that long.i hate to think of what it will be like for my kids later in life.