Replies to post #610 on Two Rivers Water and Farming Co. (fka TURV)

[mc67]

..yeah I just watched a show on California water and it seems people buy up farms to control the water underground.. which in the long run could be a good thing .. but like you I read it was doing well.. I'm still holding long but.. let's get the stories right !!

..been a crackdown on illegal MJ grows in CO so the demand should be ok moving fwd..

[lewsogge]

Look at the prices for crops/produce 3+ years ago vs. where they have been the past 3 years.... HUUUUUGE drop in agricultural prices and therefore farm revenues have been very tight for pretty much everyone in America. Price of corn, for example, has dropped 50% in the past 3 years. Pretty much every crop and produce commodity is down 50% in the timeframe you mentioned. I thought management would explain that better in CC but long story short, farming is not profitable unless you are a major farmer w/ low margins (economies to scale, as mentioned in CC) and they don't want to focus on farming right now given the margins they can make on MJ and water.

This article will really help explain the situation much better than my post did: Farm Bubble Continues Collapse Farm Incomes Expected To Crash Highly recommend reading this.