These projections are possible. These budgets include all operating costs plus depreciation, and land costs. Low grain prices, along with low livestock prices are discouraging and have everyone focused on prices and missed opportunities. Whenever prices hit bottom they eventually go up. Low prices usually provide storage opportunities because increased demand or supply concerns turn prices higher.
Demand is still good except for some exports.
Stocks, while larger than they have been in several years, are not anything like the inventories of the mid 80's. Any weather problem next year would result in higher prices. Weak new crop basis and market carry in futures markets suggests opportunities for storage returns. Livestock producers should see the low grain prices as an opportunity to lock in some low feed prices. Surviving low prices and low income will require special attention to financial management.