Government Buying Bumper Crop of Grain – Why

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    • #63644
      JohnyMac
      Participant

        Let me profess that this post is a copy & paste from another forum. I personally know the author who was in the military during the ’90’s. It is strictly an observation with hopes of someone making sense out of it.

        So what do you think?

        Lemme preface this by saying I work in an ultra-modern computerized grain elevator that stores more grain than you can imagine in northwest North Dakota. Farms and ranches in this area can be massive, sometimes spanning 15,000 acres or more. I am about to give you a sequence of eye-witness factual events and let you draw your own conclusions.

        1) Late April to early June 2013: VERY wet spring. Some areas get 4 to 7 times normal rainfall amounts. This is followed by a normal summer with normal temperatures and slightly above normal rainfall amounts in most areas.

        2) Late July 2013: Weeks before harvest begins in earnest, the government gives contracts to the larger farmers in this area for their ENTIRE crop at 10% above rolling market average. I asked around, the farmers say this is the first year the gub bought their entire crop. This grain during harvest is shipped to mills (who also have huge government contracts) through our massive elevator loaded onto rail.

        3) Late August, September 2013 and a bit beyond: Yields are 40% higher than normal for most farmers. Northwest North Dakota has a near-record bumper crop. Grain not contracted to the government from several medium and smaller farmers is tremendous in volume. All bins within hundreds of square miles go full, to include mine at the elevator.

        4) Late November 2013 to mid-March 2014: Outbound railcars dry up. Not really the railcars, but there is a limited amount of rail lines and grain suddenly gets lowest priority. When we asked our contact at the railroad he stated that oil was getting priority over everything else. There was a national news article a few days ago about it. Something titled like “North Dakota Rail way behind in ag shipments.”

        5) Record cold, the permafrost runs 8 feet this year instead of the normal 6. Spring planting will be late, frenzied, and shortened. Farmers already fear they won’t get planting done on time.

        6) Mid-March 2014. Rail is just now becoming available again. It will be a race to ship the grain out in time to make room for harvest which is 4 short months away.

        Sooo – what does this sound like to you guys? Pretty fishy at times. :boltAction:

      • #63645
        Max
        Keymaster

          Sounds like he’s pretty good at observing and collecting. Can he get schedules and figure out a way to ̶d̶i̶v̶e̶r̶t̶ ̶a̶ ̶c̶a̶r̶ ̶o̶r̶ ̶t̶h̶r̶e̶e̶ ̶t̶o̶ ̶F̶R̶E̶E̶F̶O̶R̶ write that up for Max’s next book? :whistle:

        • #63646
          JohnyMac
          Participant

            LOL Randy!

            Yeah 1000Meter is very observant. He was a G2 – Military Intelligence in the ’90’s. I gave him the coordinates of our BOL and he wrote up a multi- page report complete with a map and insets on the topo map. :good:

            He was laid-off in the fall of 2012. By March 2013 he had a job in ND and moved lock stock and barrel there from IN. He is making more money and he gets a free apartment to boot. Apparently unemployment in ND is so low businesses have to use different incentives to get good workers.

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