The Rural Voice, 1983-09, Page 7MENT: It was reached in Vienna in
August and it requires the Soviets to
buy at least 9 million metric tons of
grain each year from the U.S.
(Roughly half corn, half wheat.)
That's up from the previous
minimum of 6 million. Without of-
ficial U.S. government approval the
Soviets can buy up to 12 million. This
maximum is up from the previous 8
million. As an added incentive, the
Soviets can reduce the minimum for
corn and wheat to 8 million metric
tons by buying 500 thousand tons of
soybeans or soybean meal in any
year. (By the way, they did buy some
beans in the early -to -mid stages of the
bull market, one reason there was
great commercial support as prices
gathered steam.)
SOME PEOPLE ALWAYS GET
BURNED AT THE TOP OF BULL
MARKETS. Take it from a wise man
of the markets, Jim Gill. "Those who
always thought they were poor will
try to get rich in a hurry. If you are
using the market to prove something-
--then you are on the road to lose.
Remember the old rule --When you
make money in a bull market, you
will fritter it all away. Make money in
a bear market and you will be scared
enough that you will keep it." Those
are some warnings for would-be
speculators. These bull markets go
higher than you ever think possible
and just when you finally think prices
will smoke ever higher for sure, they
are probably peaking.
FARM MARKET PERSPECTIVE
and Ontario production areas.
FINALLY, SOME STRATEGY
IDEAS: Many U.S. advisory services
were telling their consumers to be
sold out of about half their corn and
soybeans by August 16th or so.
(That's 1983 production... use con-
servative yield estimates in gauging
percentages to contract. Early frost
would damage late planted crops.)
Also: Learn about selective hedging
and be ready to consider selling small
portions of 1984 production by using
futures if those Chicago markets
challenge 1980 highs. Think about
INFLATION... It's still a ways off,
but higher food costs could result
from the U.S. drought, and budget
deficits are still high. So it could
return in 1984 or '85.
LAND PRICES: SOME LOCAL
FIGURES...The average for a sampl-
ing of Oxford County transfers was
$2,094 per acre, for 1982, according
to a study by Muir Appraisal Services
in Woodstock. The average for the
first 6 months of 1983 was lower:
$1,866. A drop also occurred in Mid-
dlesex and Elgin Counties, according
to a survey by Deloitte, Haskins and
Sells, Associates, in London. All sales
of 50 acres or greater in Middlesex
showed an average reduction of 21
per cent comparing Feb. to May of
1983, with all of 1982. In Elgin, the
drop was 11 per cent.
WHITE BEANS: Looking brighter,
now that the 1982 crop plus last
year's carryover should be under 7
million bags...that figure includes the
tan, Minnesota, North Dakota,
selling corn for cash while using
cheaper feed alternatives to feed
livestock, and note that the livestock
outlook is brighter now that U.S.
farmers will cool meat output. Expect
the higher grain markets to stabilize
or even boost farmland, rent, and
machinery prices, and act according-
ly. These are some opinions gathered
from top farmers and analysts who
see opportunities in today's exciting
farm markets. They admit, of course,
that the big problem of tight credit is
still thwarting attempts at recovery on
many individual farming operations.
FIRST LINE
WHEAT SEED
CaII us First
Your first call for winter wheat seed should be to a FIRST LINE
SEEDS shareholder/grower.
• Fredrick and Gordon varieties.
• Certified, registered or foundation seed available.
• 25 Kg. bags or bulk pick up at some locations.
• Discounts for volume and/or bulk orders.
FIRST LINE SEEDS LTD.
R R a2. GUELPH
ONTARIO. CANADA
N 1 H 6H8
For wheat seed or more
information contact:
JOHN HAZLITT, benmiller acres 524-7474
R.R.4 Goderich. N7A 3Y1
BEV HILL, Hill & Hill Farms Ltd. 482-3218
Varna, Ontario. NOM 2R0
HUGH SCOTT, H.J.A. Farms Ltd. 345-2886
R.R. 2 Staffa. NOK 1Y0
GORDON STRANG, Strang Farms 235-1466
R. R.3 Exeter. NOM 1S0
THE RURAL VOICE. SEPTEMBER 1983 PG. 5