Leasing some property

[jwcinpk]

The market is crazy right now. A drought here pushed me out of leasing 35 acres I had been leasing for $1000 a year + expenses. Someone offered them $1500. I believe that in a couple years when hay prices have time to level out some and the gov decides corn is too high you'll see these prices retreat.

 

[AKfish]

I subscribe to a very good Agricultural newspaper that covers essentially the northwest 1/3 of the nation - The Capital Press.

Comes out weekly. Great read - everything from vineyards to feedlots from Calif. to Montana.

Looks like intense market pressures both from overseas markets as well as domestic markets for grains and feedstuffs and hay.

Appears that the cattle producers are struggling with high commodity prices to finish their beef to slaughter weight and are shifting more of their feed costs towards hay (less feedlot time) and trimming their herd numbers, too.

And, a significant number of hay and alfalfa acres have been shifted to corn and wheat production in the last 18 months and that has driven the cost of hay, etc. to new levels, too.

That said, I'd be surprised to see things settle (corn, wheat, hay, land rent and price) a great deal lower; although as oil declines those commodities should track somewhat downward as well.

AKfish