Wednesday, April 6, 2011
I reviewed the planting intentions report and have a few observations on the stated intention of only a 4% reduction in Georgia: 1. Farmers do not believe this and think it will be a much larger reduction. There is some talk of conspiracy to suppress prices at the farm gate by padding the numbers. 2. It would appear we must be going to create some more land to increase other crops at the level they intend and still only reduce peanuts by 4%. 3. In conversations I have had with others in the industry many of them do not believe the report...but for some reason this has not caused them to offer competitive prices. 4. The industry better get ready to get off their pocket book for 2012 because many farmers have a bad taste in their mouth toward peanuts and cotton prices appear to be strong for next year, at least at this point. 5. This will be a good year to look at the FSA certified acres than speculative reports based on small sample surveys. 6. The anticipated reduction in irrigated acres and the loss of Temik will have some impact on yields...the question is how much?