Fuel Cost for Farmers

I am confident, even though I live in the City, so to speak, that our Nation's Farmers have also seen an increase in the fuel cost that they need to grow the crops that make our lifestyle possible. Consider with me a few moments what this increased fuel cost will mean to us the consumers who do not grow our own food items. The cost of production, processing and distribution will most certainly be passed on to us, the consumer. If the Farmer does not realize a small profit he or she will certainly not last very long as a farmer, a provider for the rest of us. Then we will really have a problem. Enough Said!!!!

Corn Planting in the Corn Belt

Checking Out All the Systems

Filling all the Hoppers
Planting the Corn

This former Iowa Tractor Boy can recall when the Corn was planted with a two row planter pulled by a team of two horses. Of course times have changed in 63 years. One farmer can operate hundreds of acres.

Chicago Board of Trade - 2008 Corn Futures.

The following is quoted for your information:

"CHICAGO (Dow Jones)--Rainy Midwest weather and continued planting delays are expected to push Chicago Board of Trade corn futures 5-10 cents higher in open auction trading Friday, an analyst said. Weather concerns remain the biggest market factor, even with Friday morning's U.S. Department of Agriculture supply and demand report showing increased ending corn stocks for the 2007-08 marketing year, said Shawn McCambridge, senior analyst with Prudential-Bache in Chicago. The report was released at 8:30 a.m. EDT. In overnight trading, corn contracts broke their all-time highs set Thursday. May corn was up 8 1/4 cents to $6.27, July was up 8 3/4 cents to $6.39 and December was up 8 1/4 cents to $6.54. The USDA projects ending stocks of 1.383 billion bushels for the 2007-08 marketing year, an increase of 100 million bushels from April's projection, and higher than analysts' estimate of 1.32 billion bushels. The projected increase is due to a 100 million bushel drop in usage for ethanol to 3 billion bushels, according to the report. The USDA maintained the same projections for harvested crop at 86.5 million acres, and for yield at 151.1 bushels per acre. A trader said the projection could apply some downward pressure, but not enough to counteract planting delays and high crude oil prices, which are bullish. McCambridge said the market will focus on the 2008-09 USDA projections because the "old-crop has already been traded." The report projects a drop in ending stocks to 763 million in the 2008-09 marketing year. Analysts predicted the number would be 707 million. Although the new crop projections aren't unexpected, "seeing them in print" will make many traders bullish, he said. With this year's planting delays, it will be tough even to reach the government's projection of 763 million bushels, he added. "If you don't see planting progress soon, it's going to demand rationing," McCambridge said. Although the report projects ethanol usage will bounce back to 4 billion gallons in 2008-09, that increase "will be more than offset by a 949-million-bushel reduction in output," the USDA said. "Feed and residual use is projected down 14% as corn feeding declines with increased production of distillers grains, higher corn prices, and reduced red meat production," the USDA said in the report. "Corn exports are projected down 16% as U.S. supplies face increased world competition with increased foreign production and a sharp drop in EU-27 imports." In Friday's trading, bulls' next price objective is to push and close July corn prices above solid technical resistance at $6.50, while bears' objective is to push prices below solid support at $6.00, according to technical analyst Jim Wyckoff. First resistance is seen at Thursday's contract high of $6.34 and at $6.40, Wyckoff said. First support is seen at $6.28 1/4 and then $6.24. The forecast by DTN Meteorlogix calls for mostly dry weather Friday and Saturday but rain and thunderstorms across the U.S. corn belt on Sunday."

In view of the above information we who live in the City can not expect the price of our "Corn Flakes" to decrease anytime soon. The recent rains in the Mid-West have indeed delayed the planting of corn. The $6.50 price per bushel appears to be the new reality. Just a few weeks ago, $5.00 was the new high.

Iowa Tractor Boy at Work

It is that time. The soil must be fertilized and prepared for the planting of Corn. Recent rains have slowed down the planting cycle. This is a farm scene from Clayton County, Iowa.

Planting Time

The month of May is prime time for all Iowa Tractor Boys of the current generation to plant corn. While we have all heard of the ethanol surge in grain prices, we all must be aware that the cost of production for the 2008 Corn Crop will also increase in as much as fuel to operate the farm machinery is also much higher than in previous years. Additionally the fertilizers and other needed supplies have also increased in price as the cost of distribution has increased also. Then, during the harvest season, we all must remember that natural gas to dry the Corn Crop will most likely be more expensive than every before. So you may be asking, who is garnering the extra money because of the high prices of corn on the current futures market? This former "Iowa Tractor Boy" can assure you that it is not the farmers who will be raking in the cash because of the high cost of cereal and other grain products.

The final summary will be to realize that the cost of doing business has simply increased. Just as we who dwell in the cities realize that our wages have increased because of inflation.

So, just as our farmer friends are doing, we must all realize that our food and fuel will never be as reasonable as we recall from our past. Everyone will most likely have to adjust their own lifestyles.