East Central South Dakota | This conversation happens all the time. You have 10 acres of water you can't plant. You have to have 20 acres or 20 percent of a field for preventive plant. Preventive plant will pay you $350 to $450/acre. Insurance agent calls and reminds you he/she can get you $3500 to $4500 for those water areas if you square up those areas and make sure you have at least 20 acres. 25 acres would be better. People in the prairie pothole regions don't do loop for loops as much as they used to. They square areas up. These acres all start to add up.
Cattle guys have already ordered there Sudan grass and hay millet. Preventive plant decision has already been made for those folks. Cattle are high priced and feed short for the last two years. This is the excuse they need to build feed stocks for multiple years. You get paid to make your own feed. These acres all start to add up.
Preventive plant will not be enough, in my opinion, to affect this sick of a market. It will put on a little pressure for a good growing season and the lost acres will show up and be traded in 2025.
Preventive plant has changed how people fight mud, especially for the cattle industry, and I don't know if the market acknowledges this fact till a year later. |