Have the feed companies lost their minds? *Prices*

[muffntuf]

I just spoke to my feed rep. because I wanted to know how much my feed is going but, but the feed I use does not use corn, so... Nationally the yield for corn was down 5.4% per acre and it is thought we will run short. It was Russia's wheat crop that tanked this year, they cancelled all their export contracts to export out to the US. But corn is not the issue. Speculators are causing some issues though.

So my advice - just keep in touch with your feed rep. to keep ahead of your prices.

 

[Joanne]

Out in the west the hay crop was bad this year. It is estimated we will be back at 2008 prices this year again.

By Jan 2008 the price for one bale of hay was $21.00

We had unseasonably cold weather and unexpected rain at critical times for growing and baling, with a lot of hay lost. As always, stock up when it is on sale!

 

[Reble]

Here they say to fertilize their crops have increased terrible.

So prices have increased ...

 

[chandab]

Out in the west the hay crop was bad this year. It is estimated we will be back at 2008 prices this year again.

By Jan 2008 the price for one bale of hay was $21.00

We had unseasonably cold weather and unexpected rain at critical times for growing and baling, with a lot of hay lost. As always, stock up when it is on sale!

Our weather sucked for putting up hay; the fields grew like crazy with all the moisture, but no decent days for actual harvesting and baling. We have tons of cow hay (green, but musty and dusty), but very little is clean enough for horses; hopefully I'll have enough for the year, but may have to stretch it with hay pellets or complete feeds (not much selection on bagged feeds around here).

 

[Carriage]

Are feed prices an indicator of a larger picture? What else is going up in price in unison with this.

With the massive printing of the "dollar" going on and the fed buying back its own debt, could an inflationary period be coming or even here? The non Keynsian economist are saying yes emphatically!

Credible predictions of between moderate to hyper inflation have been posited for many months now and we are starting to see numerous visible signs of same. Its actually been there for some time but kept just below the surface. At some point it can't be contained or hidden any longer. We have just exited a deflationary period that are many times attendant to such downturns. This is when one wants to take advantages of the prices, especially in a "set-up" like this.

Hope I'm wrong, but prepared if I'm right,

Just sayin,

Bb

 

[Thinking small]

I'm not in the US but we haven't seen any increases in the feed costs. We don't use pellets so possibly they have and we wouldn't know.

 

[ruffian]

"Are feed prices an indicator of a larger picture? What else is going up in price in unison with this."

Everything is going to go up. Corn is the basis for numerous groceries, including pet feeds. It's also being used to burn for heat.

Our news said it was the Russian corn crop that tanked, but they could have it wrong - wouldn't be the first time. If it was their wheat crop, that's even worse, as wheat is used in more foodstock than corn.

Either way it's not the farmer or the consumer that will come out ahead, but the middleman.

 

[Riverdance]

I have been using TC Senior( for my 28 YO, who can no longer chew hay; she has teeth, they just aren't very good, despite regular tooth maintenance for all the 25 1/2 years I've had her)and TC Lite(for everyone else), for some time; both are currently at $19.95/50 lb. bag, which is the LOWEST they've been in a couple of years, because when the big push to add ethanol began, both went to right at $22-23/bag, and it was nearly a year before they came back down even this relatively small amount!

That said...I am not at all surprised. Let me say that, even though I am conservative in many ways, I do not and have never watched Fox News, or Glenn Beck, or Rush Limbaugh, etc. I consider myself an independent thinker. The national network newscasts and shows such as "The Wall Street Journal Report" make clear, in various reports, that our national GOVERNMENT seems to believe that we 'need' some inflation, and are scared by the prospect of ANY deflation...i.e., the LOWERING of prices! Does that sound crazy, in a time when many don't have jobs or have had to severely 'cut back', and would really be HELPED by lower prices?? Of course, our GOVERNMENT likes to pretend that there is NO inflation; that's the 'reason' why COLA's have been denied to SS and other gov't. retirement plan recipients this year and already for next year...yet I'm sure I'm not alone in noticing that the costs of NUMEROUS items has been going up.I have NO DOUBT that it is some form of machination by our GOVERNMENT that is behind these price increases, and the worst is yet to come...if you wonder why, read up on the provisions of the new 'healthcare' bill; in particular: for anyone whose employer/former employer contributes to the cost of your healthcare plan, how that amount will be added into YOUR taxable income, so that you will be paying income tax on a possibly significantly HIGHER amount of 'income'that you will never lay your hands on...at the same time that the Bush-adminiatration tax breaks are being allowed to expire, meaning MANY citizens will already have received a larger--maybe MUCH larger--income tax 'hit'--when there could hardly BE a worse time for this to happen to taxpaying citizens!

Sorry to go somewhat OT--BUT, IMO, this is all 'tied together' in current national GOVERNMENTAL policies...and I suspect that an AWFUL LOT of U.S. citizens have NO IDEA what is about to happen to them! HUGE price increases in commodities and products are only part of it.(I do agree with those who think that it is not likely to be the farmers who are 'driving' these sizable feed price increases. I'd guess they would LIKE to have that kind of power, but don't...)

Margo

I agree with this statement. While the GOVERNMENT is trying to drive prices up to pay for the health care plan with all of these new taxes, reduce our Medicare coverage, no increase for Social Security, they are giving themselves raises.

Fortunately, i buy a new feed that is just being put out, it has been developed by Kentucky Equine Research. It is so new, and I must say, so fresh (from being put into the bag to my farm, the feed is less than 2 weeks old), that the prices are still really good. I have never purchases from Tractor Supply because their prices have always been way too high.

 

[Carriage]

..and I suspect that an AWFUL LOT of U.S. citizens have NO IDEA what is about to happen to them! HUGE price increases in commodities and products are only part of it.

Miss Margo is spot on and Miss River is as well for giving credence. I also suspect that like me, they will be only to glad to say they are wrong if things "improve". Being prepared, if we (and some serious economic brainiacs) are correct is the gleaning one should take away.

Put up as much as you are able now in case the price is slated to go higher. It is not a gamble. It is a prudent and cogent response to the evidence at hand. Putting up for both your 4 legged and 2 legged critters is both prudent and sound money management. Besides it takes you out of your current status of buy high and sell low (think about it) and puts you on the much more preferable financial management footing of buy low sell high, which I might add is what "they" are doing to YOU dontchaknow

"Thou sluggard, Look to the ant.."

Bb

 

[LaVern]

Oats---The farmers are getting $2.75- $2.80 for 32 lbs=(one bushel) when they sell it to elevator here. I just bought 16,000 lbs bulk at elevator for $3.00 per 32 lbs=(one bushel). I will have to buy at least that much again, when I can get it. Not many raising it anymore other crops more profitable, but there are other places that buy from elevator, put it in a bag and double the money.

 

[Mominis]

I'm headed to the feed store on Tuesday and I hope that I don't see the increases that you guys are talking about, but I'm not holding my breath. That said, I have been avoiding TSC ever since they quit carrying TNT Chops because the TNT company couldn't keep up with the demand through TSC. I mean really...where is the support for the little guy in business? Sheesh...

Anyway, TSC hasn't been getting my business for several months now. I've been shopping at a local farm store and the prices, just a couple of weeks ago, were holding steady at just shy of $15 for Omelene 200.

 

[Miniature217]

I feed my mare Nutrena Stock and Stable 12% Sweet Feed it rings up $7.00 a bag but it is always on sale for $6.97 for a 50.lb a bag . At our Buchheit country store

 

[iowa]

Sorry, but the government does not want food prices to INCREASE! They go to great lengths to keep food affordable which is why we have so many farm programs. Usually the cost of production is above what the farmers get for corn. This year, the price of corn is at near record levels for whatever reasons, but I would imagine that the government is not really happy about that. Think of all the disgruntled voters who do not want their food prices to increase. In an election year, (which is just about over thank goodness) I think that political leaders are hoping food prices don’t go sky high or they may have a rebellion!

Personally, I blame the wide fluctuation in prices to the Chicago Board of Trade and the speculators who never take possession of the grain they “buy”. It is really just a way to gamble with the country's commodities and gives a false impression of the true supply and demand.

 

[mizbeth]

"Sorry, but the government does not want food prices to INCREASE! They go to great lengths to keep food affordable which is why we have so many farm programs. Usually the cost of production is above what the farmers get for corn. This year, the price of corn is at near record levels for whatever reasons, but I would imagine that the government is not really happy about that. Think of all the disgruntled voters who do not want their food prices to increase. In an election year, (which is just about over thank goodness) I think that political leaders are hoping food prices dont go sky high or they may have a rebellion!"

I take it you have not been to the grocery store to buy a steak lately? The prices are horrific! And yes, the government DOES want the prices to go up. Many hundreds of thousands of acres that were used last year to produce corn, were not used this year. Our corn production is down, while consumption/usuage is up. The government pays farmers NOT TO PLANT, sorry if that hurts your feelings. My family has been the farm business for a hundred years and we have been paid NOT TO PLANT certain crops by the government.

**

http://www.lvrj.com/opinion/25260459.html

This article explains it in simple terms.

Conservation Reserve Program

 

[iowa]

"Sorry, but the government does not want food prices to INCREASE! They go to great lengths to keep food affordable which is why we have so many farm programs. Usually the cost of production is above what the farmers get for corn. This year, the price of corn is at near record levels for whatever reasons, but I would imagine that the government is not really happy about that. Think of all the disgruntled voters who do not want their food prices to increase. In an election year, (which is just about over thank goodness) I think that political leaders are hoping food prices dont go sky high or they may have a rebellion!"

I take it you have not been to the grocery store to buy a steak lately? The prices are horrific! And yes, the government DOES want the prices to go up. Many hundreds of thousands of acres that were used last year to produce corn, were not used this year. Our corn production is down, while consumption/usuage is up. The government pays farmers NOT TO PLANT, sorry if that hurts your feelings. My family has been the farm business for a hundred years and we have been paid NOT TO PLANT certain crops by the government.

**

http://www.lvrj.com/opinion/25260459.html

This article explains it in simple terms.

Conservation Reserve Program

Oh I have been to the store and am happy to pay the price. I own and live on a corn producing farm in Iowa and have for over 60 years. The government paid farmers Not to plant for many years, not just this year!!! It doesn't hurt my feelings that you have that opinion, why would it? I am glad that the farmer is finally getting prices above what they got in the 1920's and if the government is helping achieve that, then all the better. Why do you want the family farmer to go out of business? All other input expenses have gone up - land, fuel, seed prices, fertilizer,insurance and labor. Why can't the farmer make a profit with or without the government? I thank God the government was there when prices were so low as many family farmers could not have stayed on the farm. The Conservation Reserve Program, which I think you are referring to about NOT planting corn, has seen a reduction in acreage with more acres planted in corn. Planted acreage is UP, but so is demand. It's a simple law of SUPPLY and DEMAND and it is a worldwide market now, not just the U.S.

 

[sdmini]

Not quite the article I would pick on the conservation program.

Like the name implies it is designed, yes to reward farmers by way of payment for keeping land out of production or conserving it. I believe it originated in the 30's but whether it was a product of the "Dirty Thirties" or not the goal was to preserve topsoil, prevent water erosion and create habitats. NCRS or FSA websites would have more information.

Grain prices have been better for quite some time and there are lots of pasture ground getting converted to farm ground. There are more acres going into corn and on top of that the technology involved in crops these days have increased the yields exponentially. Shortage of corn? Not that I've heard, as a matter of fact lots of elevators are having a hard time keeping the corn moving enough to be able to continue to buy corn. Why the rise in prices? It's the people playing the markets. The coffee talk is that it's the oil companies that are behind the push, driving up corn prices so that ethanol is no longer a feasible option, but that may just be coffee talk.

 

[Carriage]

Our corn production is down, while consumption/usuage is up. The government pays farmers NOT TO PLANT, sorry if that hurts your feelings. My family has been the farm business for a hundred years and we have been paid NOT TO PLANT certain crops by the government.

All true Mizbeth and well said! However the ever increasing price off corn also has another root that can't be forgotten and that is the lunacy of "Ethanol". Yes the wonderful gas "additive" that decreases performance and efficiency for a gas engine AND decreases mpg AND eats various and sundry soft parts of your fuel system over time and especially if stored. Hmmm seems like it was "gov" that forced that on us and as such IS responsible for the price increase ALONG with paying farmers not to plant. Lets see, food that could save millions from starvation, put in our gas tank by force of gov.....

So what we are talking about is a gov. created shortage, control and manipulation. Outside of big agri corporations there are VERY few "rich" farmers. The former has gov. capo's doing their bidding, the latter has to defend itself against gov in a decidedly adversarial situation because the gov. has done much to exterminate the traditional family farm. If we were talking physical casualty's it would be rightly termed government sponsored genocide!

To bring it back to the original question, No the feed companies have not lost their minds. Nor have the poor farmers. Due to generational apathy and inattentiveness on a national scale they are merely pawns and are only able to react in defense. They have no choice. They can either play the hand dealt them or fold. With the forces arrayed against them, refusal to fold is a temporary measure with an inevitable outcome UNLESS you change the dealer AND the game.

"We the people/dealers in order to form a more perfect union and secure the blessings of Liberty/game".....

Bb

 

[mizbeth]

Yes Marlee,

This is not the article to select overall, but other articles were too detailed to put up here. Yes, corn production is down per USDA site with statistics on it, but again that is a complicated site to understand, plus the terminology. Conservation Reserve Program refers to many crops, not just corn and encompasses a number of things, not just the conservation of land alhtough called that. We were paid not to plant cotton for instance, and yes the program has been in effect for many many years. YES, the farmer should make a profit, I totally agree, since my family farms. However in the overall scheme of things, it is not the farmer who makes the money, with or without the governments help.

Anyway back to high feed costs.........horrific! I rarely get involved with politics (which this most certainly is), as no matter what, not much we say or do will make a difference. Lets hope we see a change for the good in the cost of feeds, and goods for that matter, since the economy in general is still not good.

 

[Allure Ranch]

I've personally utilized Strategy, Safe & Sound and many others over the years.

 

However, after all the increases in price I finally decided to located a comparable feed that my horses would still benefit from and therefore I switched to Caliber 12. As of last week I contacted the mill verses obtaining it through our vendor and negotiated the price of $7.57 per 50 lbs bag for a ton.

 

So NO complaints from me right now.... and I've been using this particular feed over 7 months.

 

[Mominis]

Went to the feed store yesterday and my feed price is still holding solid at $14.75/bag (Omelene 200). However, my hay (TNT Chops) went up from $9.95 to $10.50/40#bag. Corn would have nothing to do with that.