A new mindset.

Veteran agri-marketers know that record crops and livestock herd numbers result in low prices.

Wrong! Take a look at the current state of affairs.

The U.S. is harvesting its second largest corn crop and largest ever soybean crop. Corn prices, though, are at ten-year highs and soybean prices are actually going up! Placements in feedlots are at all-time highs and the nation's pork producers continue to expand their production. Their prices remain firmly in ranges generating profits for livestock producers.

Is this type of an ag economy sustainable? At least one veteran agri-marketer thinks so, and the result is a completely different mindset among many ag producers that is affecting the marketplace. At Syngenta's recent media summit, its Mesotrione Brand Mgr, Callisto, LUMAX and Lexar, Pat Steiner said that ag producers will be switching from a "cost-containment" mentality to one of "profit maximizer." That is, ag producers will be basing their purchase decisions much more on yield increasing, time-saving technology than ever before.

This change in ag producers' priorities will certainly mean opportunity to the agri-marketer who recognizes it, leaving others behind who don't.

WHAT A YEAR!

Companies with a significant presence in agriculture's stock value have increased an average of 35% so far this year! That compares to the S&P 500's gain of 10%. The five biggest gainers are: AGCO, +75%; Potash Corp, +74%; Lindsay Mfg, +73%; Valmont, +68%; and Terra Nitrogen, +66%.

Lynn Henderson

Publisher