Financial Conversations with Fitz #100 - Conversation with Ag Week Salute - 03/20/2012
AG WEEK Happened at TSB in Titonka we had coffee at the Red Dog on Tuesday, Wednesday and Thursday; in Thompson we had coffee. Then on Wednesday we served the Farm clients at Farmers Coop in Forest City. Don’t forget to sign up for Fed Crop by last Thursday!
The ag world needs to spread the word on importance of ag to our well being—Food prices to increase by 3-4% in 2012. Still a good buy for consumers. US food is still lowest % of budget in the world. American Farmer feeds 159 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.
Carbon Footprint…Was actually talked about in 1972 by Nixon “Energy Policy.”
Wheat stocks still low in 30 yearr. Food prices—Grain trading continue to be volatile *sidelight - We still have a lot of 2011 grain still on hand. Right now speculators are still in control of price swings and not supply/demand. Last year we heard at Ag Conference, which we will be attending on Sunday, Monday and Tuesday this week this year, Kohl, Duffy and Taylor will be giving their outlook….‘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 around 3 yearrs into this cycle.
Current/Future State of Ag—Don’t be afraid to tell our story…Also “Disneyland” story. Hope you tried to hug a farmer this month when we enjoy our inexpensive food.
Market trends and profitability for ag customers—will still be volitale during 2012. 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.
EVENTS End of the month 31st….WOMEN AROUND AG CONFERENCE IN Mason City AT Prime and Wine CAN STILL REGISTER AT WGO EXTENSION OFFICE ( Saturday Format)
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.