Red-Hot Resources

"Luck is not chance, it’s toil; fortune’s expensive smile is earned.”

Monday, April 07, 2008

When an 86-Year-Old Farmer Talks about the Future, Listen Up

A trader friend of mine just related a conversation he had with an 86-year-old farmer in the Midwest. The farmer said he and other farmers he knew were NOT selling futures for 2009. Reason: They expect prices to be much higher in 2009, so they should be able to get better prices down the road.

My question was: "Should this farmer be worrying about 2009 futures? He's 86! If he puts a crop in the ground this year, that's pretty much an act of optimism!"

But those old guys, they live a hard and virtuous life that keeps 'em running around when the rest of us are pushing up daisies. And it's interesting to see what the farmers are planning. The ones who are successful over the long haul (86!) tend to be conservative in their financial dealings and are often right on the money.

One more thing: The ground is way too wet to plant in parts of America's breadbasket. This could have a big impact on prices for corn, soybeans, you name it.
Check out my new gold and energy blog at