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Re: Soybeans Fundamental?



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[Quoth the Mark Morrison:]
> 
> Ramon:
> 
> But what are the farmers
> >going to plant this year?  More beans.  Why?
> 
> That's a good question.
> 
> I asked one of my clients who is a farmer.  Even though farmers can barely
> breakeven at the prices the government will guarantee, he still has a
> mortgage to pay (land and equipment).  He can't just be idle, or he will
> lose to the bank.  It's better to breakeven than to lose, so that's why
> he'll continue to grow beans.  Some farmers in the south can switch to
> cotton, but up north it's too cold for cotton, so they're stuck with growing
> beans.  Beans are also easier to plant than Corn.

Corn depletes the soil of nitrogen; soybeans and other legumes actually
enrich the soil with nitrogen from the air. So it's better to plant the
beans even if you plow them under because the price is too low than it
is to plant corn or cotton.
-- 
znmeb@xxxxxxxxxxxx (M. Edward Borasky) http://www.teleport.com/~znmeb

If God had meant carrots to be eaten cooked, He would have given rabbits
fire.