"Currently, the input costs to grow this winter’s wheat crop are estimated to be around $6.00 a bushel, but elevators are only offering $3.17 for it. This apparent sure loss has not slowed America’s wheat farmers as they start to plant this year’s crop."Since in am ignorant in the growing of wheat I was wondering if someone could enlighten me on the "hows and whys" of wheat costing $6.00 a bushel of input costs. I'm not disagreeing with the number, I just don't know what goes into a wheat crop like I do corn or soybeans. But, one thing is for sure, I do understand why the wheat farmers are continuing to plant wheat even when the prices are so low ... because that is what they have been told to do and that is the only agricultural system they know.
"According to one Oklahoma banker, growing this year’s crop will probably make them poor. He estimates that half of the net worth of his current farmer customers will be lost in 2009."
"Watch for a Farm Bailout bill in 2010."
I assume that many of the wheat farms are large scale mono-crop type operations and they probably are tooled up enough to just switch operations on the fly. Because of that they just plant wheat and some may even plant more ... because that is what our government wants.
As for corn having the same fate and the 2010 Farm Bailout Bill ... Well, I'm not sure what will happen with corn, but I do know that corn closed at $3.32 yesterday which is darn close to the break even point. As for a farm bailout ... what more could they do that they don't already do in the 2008 Food Stamp ...err... Farm Bill?