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Cereal attraction

Having just spent all of yesterday at the Cereals event, I am struck by how upbeat the mood is.

Last year growers were definitely in a better mood, but the doom-mungers were still there predicting it wouldn't last.

This year, however, with forward contracts for wheat in the 80s and 90s for the next three years, there really was a feeling that a corner might have been turned.

That certainly was the case among machinery manufacturers reporting long waiting lists for kit - one self-propelled sprayer company saying 18 months!

And let's face it - growers deserve some better times. After several years of pain - and a good deal of restructuring - those with leaner and fitter operations should be "in the money" this year, and good luck to them.

My only hope is they don't go and do what farmers always do - spend it too fast! Indeed that comment was made to more more than once yesterday by farmers: "Well 'course we'll just go and spend it now...like we always do."

I hope not. Of course the agricultural economy needs spending for it to thrive. But don't go mad folks.

Having got yourselves into a good position, it's time to think cycles: Economic ones that is, not wheeled ones.

Imagine you're farming in a five-year cycle with good years and bad. Make the business work sustainably around that notion.

At least that's what I'd do, but then again, I'm just a journalist?

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This page contains a single entry from the blog posted on June 14, 2007 2:04 PM.

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