FARM costs DEFLATION!!

[jtabeb]

Naw, just kidding. Actually 8.3% INFLATION in farm costs nationally.

FARGO, N.D. (AP) - Production expenses rose slightly for farmers in the Great Plains last year.
The Agriculture Department says production expenses in the region in 2008 totaled $74.2 billion, up 1.2 percent from the previous year.
The region includes North Dakota, South Dakota, Kansas, Nebraska, Oklahoma and Texas.
Farm production expenses nationally were up 8.3 percent over the year.
Copyright 2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
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[cobben]

Re: FARM costs DEFLATION!!

Let's see: costs up, demand down = Ag stocks up!

But perhaps not for long . . .

How to Play the Collapse in Meat Prices
By Tom Dyson
Monday, August 17, 2009

http://www.dailywealth.com/archive/2...009_Aug_17.asp?

Because the meatpackers aren't slaughtering as many pigs, there's a backup of live hogs on the farms. Lean hog prices have fallen about 50% from their 2008-highs.

"It has gotten so bad that I was recently offered 5,000 head of piglets for free, zero, nothing. Just come on down and pick them up," says my friend. "Today's futures prices are so low, I would still lose $10 per head feeding free pigs."

Beef prices are falling, too... although not as severely. Demand for steak has collapsed in the recession and there's so much oversupply, meatpackers are being forced to turn their high-end steaks into hamburgers in order to sell them. Live cattle prices have fallen 18% from 2008 highs.

[Slimprofits]

Re: FARM costs DEFLATION!!



http://www.ers.usda.gov/briefing/far...data/pe_t4.htm

[gwynedd1]

Re: FARM costs DEFLATION!!

They can keep the grain fed beef. Even wholefoods was bragging that their beef was 100% grain fed. I am glad that they figured out feeding dead cattle to cattle is bad but so is feeding grain to a ruminant. They need to feed them antibiotics because they are dying on grain. We just kill them first. The pH is so screwed up in their digestive tracts that E-coli is a constant problem. I was more tolerant of this in the past but have increasing left beef except for some grass fed.. I didn't replace it with other meat either. Avocado, egg plant, tomatoes with pesto, pasture raised eggs, olive oil, fresh and dried beans like lima and snap fit in nicely. I do now pay more for healthy animal protein but eat less of it. You could not have traded my home grown fresh Lima beans away from me this weekend with prime rib. I would consider it for caviar or salmon roe or good grass fed lamb but only about half. Demand is down in my house.