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Sunday, December 23, 2007

2008 -- Farm-ageddon?

From the CattleNetwork ...

Costs & Grain Prices Explode In 2008 Crop Budgets

Farming in 2008 is shaping up to be one for the history books. Never have both costs and grain prices been this high. Costs and grain prices are competing forces when it comes to profit. Fortunately, grain prices should prevail.

Recent history provides a perspective. Prior to 2007, it was difficult to project a positive return to labor and management for most crops. It was not uncommon to project a loss for spring wheat, North Dakota's largest crop, in nearly every region of the state. Despite higher costs, this changed in 2007 because of better crop prices and most crops projected positive returns across the state.

It looks even better for 2008. Projected returns are the best that I have seen in 17 years of preparing crop budgets. All crops should be profitable, except for oats and rye.

Read the rest HERE.


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