Financial Conversations with Fitz #11 - Ag Week - 3/17/2009
AG WEEK Happenings at TSB in Tike we have coffee at the Red Dog on Tues, Wed and Thurs…in Thompson we have coffee on Tuesday 17th….By the way I just had breakfast at the TownMart…for Green Eggs and Ham being it is St Pat’s day….Then on Wednesday we serve the Farm clients at Farmers Coop in Forest City…..See you at all of some of them…..Hope you signed up for Fed Crop yesterday!!!! We rescheduled our Extension Pesticide meeting to April 2nd at 7:00 in the Community Room in Forest City. I greeted about 20 brave students last Tuesday night in the sleet and snow. We had a lot of calls on the roads to the NW of us. Our speaker called from Swea City and didn’t want to try it. Osage has one on March 31 and Wright Co has one at Eagle Grove on the 19th.
The ag world needs to spread the word on importance of ag to our well being—Food prices to increase by 3-4% in 2009. Still a good buy for consumers. US food is still lowest percentage of the budget…American Farmer feeds 144 people. Spoiled by cheap food for years….World trade—more people moving from poverty to consumer for food and energy…China and India and other Asian countries want to eat what we have been eating.
A big discussion in Agriculture is Carbon Footprint…Was actually talked about in 1972 by Nixon “Energy Policy”….It is going to be real….Try to learn all you can about it.
Wheat stocks still lowest in 30 years…food prices—Grain trading..Continue to be volatile *sidelight… We still have a lot of 2008 grain still on hand. Right now speculators are still in control of price swings…not supply/demand. Last year we heard at Ag Conference, which I will be attending on Sunday, Monday and Tuesday next week. This year, the speakers said..”Ag prices right now are a trip thru Disneyland..." We will come to the end of the road sometime. Usually Ag cycles are 4-6 years (1972 last one like this) we are 1 ½ yrs into this cycle.
Current/Future State of Ag—Don’t be afraid to tell our story…Also “Disneyland” story…..Jan Anderson reminds us to hug a farmer in her Marketing Moments this month…..
Market trends and profitability for ag customers—will still be suspect during 2009. With all the wild swings in the world,,Need to control own destiny with commodity trading and use of Revenue Crop Insurance….Be sure to run your own projections and understand them. I will be reporting in from Ames next week from the Annual Ag Conference at ISU. Hopefully will pick some new ideas for profit……
EVENTS End of the month 27th and 28th….WOMEN AROUND AG CONFERENCE IN CLEAR LAKE AT BEST WESTERN, CAN STILL REGISTER AT WINNEBGAGO EXTENSION OFFICE (Friday night and Saturday)
Remember that you should deal with people in community banks and organizations that when they put something together for you that they will be sitting with them at ball games, church or community events. So, if in doubt give us a call.