It’s rare to see financial optimism in both the grain and cattle sectors. It would seem like a great time to buy more land or buy more cows, except that when everyone else has the same mindset, it becomes more expensive and therefore more risky. The famous quote by financial tycoon Warren Buffet comes to mind. “We simply attempt to be fearful when others are greedy, and to be greedy only when others are fearful.” It’s sound advice, but easier said than done. Excess moisture remains the main caveat to a successful 2011. Many eastern regions need below normal snowfall and a drier than normal spring in order to reclaim some of the unseeded acreage from 2010. In the wet regions, the advice about being greedy when others are fearful may apply. The price tag for expansion might be lower due to the uncertainty caused by flooded land. In regions where excess moisture isn’t such a top of mind issue, perhaps it’s good advice to be fearful because others will be greedy. But what if the grain industry can actually string together a series of good years? Imagine what that will do to land prices. Expansion timing is a big key to success. Unfortunately, predicting the future is just an educated guess.
I’m Kevin Hursh.
DynAgra, an independent Western Canada-based Company, is dedicated to providing growers with the tools to manage the risk and maximize the profitability of their farm business through the continued innovation of agricultural products and services. We are committed to developing and providing growers with the latest in precision agronomics, variable rate technology, soil fertility, crop protection, fertilizers, custom application and financial solutions.