CRP Signup 41 Vs. $6.30 Bushel Corn

[haymaker]

Oil is indirectly subsidized with ridiculously low lease rates on public properties. Ethanol is directly subsidized by dollars per gallon or bushel processed, as well as legislated into your fuel at certain levels, regardless of whether or not it is cheaper, ( or better), than the fossil fuel alternative. This does not even consider the cost in water to process ethanol, or higher food costs as a direct result. I realize that ethanol can be good for any given producer or grower out there, but it's bad public policy, as it exists today, and a pre-destined failed economic model. Malthus wrote about this in the 1800's. I am against cheap drilling leases as well, along with selling US timber and oil to Asia, and the US regulations which make it impossible economically to build oil refining facilities in the US. If we put our efforts into bio-diesel, I believe that could be made sustainable, rather quickly. Instead of corn, you'd be growing sunflowers!

I have no problem with bio diesel. I do not particularly like growing sunflowers. I believe in the not too distant future ethanol will come from more sources than corn. This is a fluid situation, but I do believe it will pressure CRP acres. If half of the current CRP went back into production it would change crop prices. There are a lot of potential sources of energy out there and we need to look at them all. If we subsidize them for a few years that is ok but if they can not become viable on their own we need to move on. That includes oil and ethanol and biodiesel and solar and wind ect. The demands on our land will increase and the value of what it produces will increase, even wildlife.

 

[moellermd]

I have no problem with bio diesel. I do not particularly like growing sunflowers. I believe in the not to distant future ethanol will come from more sources than corn. This is a fluid situation, but I do believe it will pressure CRP acres. If half of the current CRP went back into production it would change crop prices. There are a lot of potential sources of energy out there and we need to look at them all. If we subsidize them for a few years that is ok but if they can not become viable on there own we need to move on. That includes oil and ethanol and biodiesel and solar and wind ect. The demands on our land will increase and the value of what it produces will increase, even wildlife.

I think that is a fair assessment.

 

[fsentkilr]

I talked to a NRCS D.C. from western Kansas today, and he is surprised how much interest there is in the new signup. There is a lot more certainty in a guaranteed payment from the government for 10 years than what grain prices and cash rent will do. These record profits for cash grain farmers won't last and most of us know that.

 

[UGUIDE]

I talked to a NRCS D.C. from western Kansas today, and he is surprised how much interest there is in the new signup. There is a lot more certainty in a guaranteed payment from the government for 10 years than what grain prices and cash rent will do. These record profits for cash grain farmers won't last and most of us know that.

Thanks for the update fsent.....not to be arguementative but they also said these land prices would not last and where are we now? Still with record land prices.

 

[oldandnew]

Everybody I talk to from the Federal Reserve to the regional bankers are advocating higher equity positions and tighter credit standards for ag real loans. The big ag lenders have been in the 65% max LTV for a long time. All these moves are protection against eroding land prices.

 

[moellermd]

All these moves are protection against eroding land prices.

I can't help but think an increase in interest rates will automatically mean lower land values. It always has in the past.

 

[oldandnew]

We might get lucky on interest rates, as the old saying goes it's an ill wind that blows no one some good. Issues in the Mid-East, and the mess in Japan having forced up fuel and straining the financial markets is having a downward effect on interest rates at least for now. If you can get a loan, the rate will be low. Finding willing lenders can still be an issue in most of the country.

 

[fsentkilr]

Its not hard to find willing lenders on ag real estate if you are a good credit risk. Two local banks will lend 80% of appraised value. I'm going to Finney County tomorrow to look at 640 acres. I was quoted 4.75% for five years with a 2% cap ammortized for 10 years. I will be going into 2 different NRCS offices in western Ks. tommorrow and will check how the are coming along on the CRP signups.

 

[FCSpringer]

I think they will get the acres signed up. It will just be in Western Kansas, Eastern Colorado, Western Nebraska, West of the river in the Dakota's etc.

We will continue to lose ground in some of the best remaining pheasant (& in some cases duck) production areas like IA, S.W. MN & Eastern Dakota's. Hate seeing all the diversity & benefits that were created with the advent of CRP 25 years ago getting flushed.

IMO what is supporting the current market is artificial and ultimately unstable. It will eventually crash. Producers who don't tread carefully will take the initial hit and like always the companies producing the inputs will walk away with a fat wallet. The rest of us will eventually pay for the aftermath.

Maybe I should have picked up a pointer pup instead of my little flusher. Looks like I will be chasing fewer birds in bigger country over the next decade or so.

No matter how many CRP acres you hunt your little flusher will do his undying duty. No field is too big.

One thing nice is that the new acres that go in are generaly a much better quality grass mix then the old Gopher infested brome fields. If they would now just leave out the Canada Rye stuff.

 

[oldandnew]

I saw a picture of a retriever with a bird in nationally prominent hunting magazine recently, literally posed in a patch of canadian rye. I wondered at the time if they had any idea of the possible risks. I had a pointer 30 years ago with awns imbedded, growing along her flanks, took three surgeries to cure, and we were lucky. I think flushers are at least as effective in big patchs as pointing dogs, especially on pheasants, even in big patches there are subtle terrain irregularities, and cover variations, pointers tend to read these patterns and follow a feature, whereas it's been my limited experience that flushers are more thorough about treating all ground equally, missing fewer birds. This from a lifetime of pointing dogs, and the one irreplaceable lab I have had.

 

[Downtown Bang!]

No matter how many CRP acres you hunt your little flusher will do his undying duty. No field is too big.

One thing nice is that the new acres that go in are generaly a much better quality grass mix then the old Gopher infested brome fields. If they would now just leave out the Canada Rye stuff.

I'm a flusher guy to the core so really just idle talk on my part. Pup's an FBECS and I'm drinking the Spaniel kool-ade 100%. Little guy is fearless. Can't wait for the season to start.

 

[FCSpringer]

I'm a flusher guy to the core so really just idle talk on my part. Pup's an FBECS and I'm drinking the Spaniel kool-ade 100%. Little guy is fearless. Can't wait for the season to start.

LOL, I thought you were feeling a little blue, just trying to add a sunny side to someone feeling down. I guess we were both a bit off. Glad to hear he will tear through CRP soon.:thumbsup:

When everyone talks about loosing CRP acres,and 41 sign up concerns, do they also factor in perpetual permanent acers signed into programs???? There is so many other programs in MN that I think the true #'s are misleadingng and not as dismal as one may think. Not sure about other states. But we have RIM,CREP,and so on to go along with all the CRP. And those programs are "Forever". They will not come up for resigning. I have a friend that is putting in 160 acres in RIM ( Reinvest in MN) this year. Great program. I doubt he is the only one. But does other states have such programs???

 

[safari]

Its not hard to find willing lenders on ag real estate if you are a good credit risk. Two local banks will lend 80% of appraised value. I'm going to Finney County tomorrow to look at 640 acres. I was quoted 4.75% for five years with a 2% cap ammortized for 10 years. I will be going into 2 different NRCS offices in western Ks. tommorrow and will check how the are coming along on the CRP signups.

fsentkilr....What did you find out from the NRCS offices?

 

[fsentkilr]

Good interest in Finney and Ness County. Even some new going in besides reenrollment. Very little being torn out. Of course we will have to see it whats signed up gets accepted. I did see one patch east of Garden City thats been ripped up. It was a big field. It was really flat and better ground than most of it out there though. I also bought a half section of very good pheasant hunting property. It wasn't the best investment, but I will enjoy it.

 

[airmedic1]

Some one I know just looked at a large farm in Kansas, 1920 acres or so. He investigated borrowing the money, putting it in CRP and sitting back. The thing that bothered him the most was the mineral rights, including water didn't go with the property. Had he gotten the mineral rights he would have bought the ground, put it in warm season grasses, enrolled in the CRP and WIHA programs. It wouldn't have taken much of his own money to come out with three sections of ground almost free and clear in ten years.