Given the drought, scary-low ending grain stocks, and record farm incomes, how much longer will...

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Jeffrey Notaro Comments (7)
 
MOO is made up of the companies that provide equipment, goods and services to the agribusiness community. In the long view, increased farm profits and enlarging of the farming industry will mean greater profits for these companies. But, they are also beholden to short term swings in farmer expenditures, such as this year the drought will lower incomes and curtail expansion of farm operations. A much more direct way to invest in the agriculture based bull market is farmland. Land prices have almost continuously gone higher without regard to the stock market or economic conditions - it is truly non-correlated and rising based on strong fundamentals that should persist for many years.
13 Sep 2012, 03:02 PM Reply Like

ComputerBlue Comments (218)
 
Eastern corn belt here...every farmer I have spoken with claims their spending habits will not change over the next year. That isn't speaking for the whole farming community though. They did mention they probably won't use as much potash. Some area worried of potential seed shortages.
13 Sep 2012, 07:13 PM Reply Like