“You’ve got two crops to harvest every year- one is the one you grow and one is the speculator. I think the speculator is going to allows us an opportunity to sell corn and beans, in fact they already are, at higher prices than they were two months ago,” Brock explains.
This year shows an increase in intent to plant cotton, making it not quite king, but doing very well, Brock says. Cotton costs slightly less per acre to plant than corn, but costs to get back into cotton will be a factor. Cotton pickers come more dear than combines and growers who got completely out of the game will have a hard time jumping back in.
Brock looks for this year to be one of change. While the conditions have many differences from the mid-80s, the transitions agriculture will go through will similarly provide growers an opportunity. It may be good, it may be bad, but it will be different Brock believes.
Listen to his full remarks to Chuck Zimmerman here: [wpaudio url=”http://traffic.libsyn.com/zimmcomm/gin-17-brock.mp3″ text=”Interview with Richard Brock”]