The Long Road Ahead

A VIEW FROM THE CAB

Credit availability does not appear to be a threat for Jim Klever. He farms 3,800 acres in northern Illinois near Lena. “Our local Farm Credit affiliate says that credit availability will not be an issue for them, and I think we're OK as far as I can see,” he says.

In early October, Klever was more concerned with how far out he would be able to lock in grain prices, given what he's prepaid for inputs.

“My assessment is that the biggest fallout is probably going to be that some of the hedge funds will dry up, which I hope will reduce the volatility. I'm not sure that's a bad thing — getting rid of some of the volatility. During the run-up in grain prices, you couldn't contract too far into 2008, and couldn't get anything done in 2009 last spring,” he says.

“My concern is that I'll need 190-bu. corn just to break even, with anhydrous here at $1,250-1,300/ton and potash at $1,000. If corn stays at $5 and rents wanting to climb, how's that going to work? I think our credit supply will be OK,” he says.