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NE SD | Mark,
I think some of what Doug is saying is relatively true. In South Dakota alone, ethanol plants are working on choking their own chicken. As of right now, 40% of our state's corn goes to ethanol production. By 2008, an estimated 60% will go to ethanol production. With the drought we are having right now, I have no problem seeing $3.00 corn a year from now. If the corn acres start to ramp up, hopefully Bean demand will jack up prices there to equal out acres. We make excellent money for one or two years and then cash rent goes up from the $50 dollar range we are paying now to level out any extra money we may be making.
It's going to be purely speculation, but with the current payments on corn, it has been a big money maker for us........I would not be afraid to ramp up our corn acreage with those kinds of dollars.........heck it's working now, why wouldn't it if we have higher dollar corn? If nothing else, maybe we can improve this -$0.60 basis we have to a near zero range. | |
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Corn production in the next few years..."fundamental changes"
