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A lot of things to think about, fuel price is one of them

Agriculture.com Staff 04/21/2006 @ 10:45am

I always target April 20th to plant corn and I was able to meet that expectation this week. Moisture conditions were good here in Cass County, Nebraska. In fact, some of my openers were clogging up because the soil was too wet. I noticed comments on the Marketing Talk page that was too dry to be planting, but here we have plenty of topsoil. I'm going to keep planting and be half planted by next week.

I sold some of my old-crop corn this week. I had a target price set at $2.00 per bushel, and the local cash price went over $2.00, pulled back and then went back to $2.00. I hadn't sold any corn from last year, even though the basis is bad, it's still better than last fall. I think we still need to keep moving this corn. I sold at $2.01 per bushel, and took a $0.47 LDP on it last fall. I can live with that.

My local grain merchandiser thinks with the high fuel costs and big stocks of corn, the basis won't improve much short-term.

A couple of weeks ago, I bought my diesel fuel supply. Since I cut back my farming operation, I don't burn much diesel and can hold a year's worth of supply in my tank pretty easily. Since I did that, the price of diesel fuel has gone up $0.23 per gallon. That gets your attention when you think about how much it's gone up in a short amount of time.

I'm happy I got my fuel bought, but feel sorry for those farmers doing a lot of tillage. For people that irrigate using diesel fuel for their power supply, no doubt it's going to get painful this summer. The biggest thing will be the price of unleaded gas. Some people just have to drive their cars to work. With unleaded gas prices going as high as they are, you have to wonder if diesel and natural gas will follow.

I'm kind of glad I'm close to retiring.

I always target April 20th to plant corn and I was able to meet that expectation this week. Moisture conditions were good here in Cass County, Nebraska. In fact, some of my openers were clogging up because the soil was too wet. I noticed comments on the Marketing Talk page that was too dry to be planting, but here we have plenty of topsoil. I'm going to keep planting and be half planted by next week.

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