Bins for 2008
FTLComm - Tisdale - Wednesday, May 19, 2008

Agriculture almost by definition is an uncertain and unpredictable portion of our economy and in 2008 that certainly is the case. With a shift in North American markets toward increased production of field crops for energy the price for wheat, Canola and even feed grains have risen to remarkably high levels. Agricultural economists are forecasting continued high prices in this coming crop year which is a nice change from the the decades of prices that actually were below the cost of production.


But farmers have to take everything through the filter of experience and know full well that weather and the market place are definitely not to be taken for granted. With the looming prospects of a recession in the US economy and the possibility that that could in turn trigger a world wide recession the high prices could face markets where there is no money to purchase the production and commodity prices could easily take a slide with things like oil and gold.


One way or another the market place has to prepare for what ever comes its way and building new bins is just a sign of confidence in the agricultural economy.

It is hard to gauge the depth of the American recession as their government is taking some unusual and perhaps ill-advised measures to prevent disaster by shoring up failing banks and producing inflationary pressure by increasing the money supply. Today's stock market reaction was not good and there is an expected sell off tomorrow on the markets. The problem for agriculture is that it relies upon long term trends and requires stability and the present situation is anything but stable.

Timothy W. Shire

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Editor : Timothy W. Shire
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