Farm Talk 2 – Soybean Acres

From Successful Farming Magazine, “On Friday, the USDA pegged the U.S. 2017 soybean acreage at 89.5 million acres, above the trade’s expectation of 88.12 million and above last year’s acreage of 83.43. If realized, this year’s soybean plantings would be a new record.” Headline reads, “USDA PEGS U.S. SOYBEAN ACREAGE AT RECORD HIGH”.

http://www.agriculture.com

This should not surprise anyone that has been following the wheat and corn prices. I always find it interesting to watch the “invisible hand” work its magic in Agriculture. Agriculture is one of the few markets that is purely a competitive market (except for the government subsidies – Think Corn Prices!). Supply and Demand can be seen working in almost every aspect of the Agriculture industry.

As the price of wheat and corn go down, farmers switch their planting decisions to soybeans. With time, soybeans will go down in price due to surplus inventories and the cycle will start all over. Fascinating. On this news, soybean prices were down for the day. May soybean futures closed 17¢ lower at $9.46. November soybean futures finished 8 1/4¢ lower at $9.55.

More about the Invisible Hand Theory: The phrase invisible hand was introduced by Adam Smith in his book ‘The Wealth of Nations’. He assumed that an economy can work well in a free market scenario where everyone will work for his/her own interest.

I feel like the theory is based on the individual’s desire to maximize his or her own interest. When that happens, everyone benefits. I have always been a fan of Adam Smith’s theory. I love to see it in action. Thank you agriculture. Thank you family. Thank you grocery store. Thank you church. Thank you… I could go on and on but I think my point is made.

What do you think?

Farm Talk 1 – Introduction

Welcome to Farmer Talk. I am a 4th generation farmer in North Central Kansas. Because of some very important people in my life, (primarily my lovely wife, Janet), I get the privilege of working with my father on the family farm. We produce corn, wheat, soybeans, and milo. A lot of you know milo by its other name of ‘sorghum’.  We’ll discuss that point in the future.

My goal is to share what I do each day at the farm. Farming is no longer just manual labor. Farming involves all of the following and more: Finance, Technology, Weather, Marketing, Timing, Planning, Patience, and Faith. I have thoughts on all of these on a daily basis.

Everyone has an opinion and I am no exception. My opinions are not  the same as others. Can you imagine how boring the world would be if everyone had the same opinion. I am always trying to learn so I hope to spark some interaction by sharing my opinions and thoughts.

Through these daily thoughts, I hope to share what I am thinking about during my daily trek of producing food for the world. I will share my history leading up to working on the farm. I will share how important my wife is to me and what she has taught me along the way. And I will let you know how I feel about my faith in God. Nothing happens without the strength of God.

If no one participates in this adventure of mine, I feel that I will gain a perspective of my life by writing it down. If I can get some interaction from others, I will gain so much more. I encourage everyone to chime in through comments and questions. This can be a lot of fun. Let’s do this.

Farmer Talk Bob

My dad and I watching Kansas State Football.