DTN AG Summit – Day 1
I attended most of the afternoon session of the first day of the DTN AG Summit in Chicago. There appeared to be around 600 Agri-business leaders there of which about half were farmers.
The potential slowdown in economic growth in China may negatively affect the American farmer in 2012. Although growth of 4-5% would be great in America, it is not so good in China or India.
Another session was a presentation by the largest Brazilian farmer. By 2015, it is likely this company will be farming over 1 million acres. There costs per acre are not lower than other smaller farmers in BrZil, however, there yields are higher, therefore, there per-unit costs are lower. Also, more than high of their revenue for the current crop year is from cotton, not soybeans.
They also indicated that unless bean prices are higher than about $12 per bushel, the Brazilian farmer will not plant more beans.
That’s my recap for day 1. I will keep you posted on day 2.
Paul Neiffer is a certified public accountant and business advisor specializing in income taxation, accounting services, and succession planning for farmers and agribusiness processors. Paul is a principal with CliftonLarsonAllen in Walla Walla, Washington, as well as a regular speaker at national conferences and contributor at agweb.com. Raised on a farm in central Washington, he has been immersed in the ag industry his entire life, including the last 30 years professionally. Paul and his wife purchase an 180 acre ranch in 2016 and enjoy keeping it full of animals.
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