Our Global Grain Reserves are Diminished

I thought with it being Veterans Day, my work day would be slower and quieter, but for some reason, it was pretty normal all the way round with the exception of our government offices being closed. When in need of something over at the Post Office, I walked into an empty building and suddenly remembered they were also closed.

My first appointment was with a seller who stopped by to sign all the transfer documents on her home we’re scheduled to close this coming Monday morning. That particular closing went well over a week from its closing date, and all due to this bottle-necking of title work we’ve had to endure since this impetuous buyer spree started back when this pandemic arrived. Once this China-virus is over, I’m pretty certain there’ll be a great deal of research and papers written by sociologists and economists regarding what’s been abnormally happening these past two years in regards to the change in mentalities of the masses. In spite of being in the thick of it since 2020 began, I still can’t get my brain wrapped around the reasoning.

After several calls to the listing agent, I was finally able to get my buyers into a home I sold them, just so they could do some measuring, and since they’d only seen it once before they purchased it, they definitely needed a refresher. We must’ve been there a good hour, but at least they had all their measurements taken and questions answered.  There are some documents needing to be prepared and signed on the sellers side, which I was quick to remind the listing agent because I absolutely do not want their closing delayed even one day, and only because they’ve got the buyers of their home chomping at the bit wanting to get moved in. Once those two files are closed out, I’ll be fully relieved. I’ll be placing another call to that agent regarding the amount of personal items still contained within, just as a reminder our closing date is near and that stuff has got to be out the day we do our final walk-thru. I will never understand why some sellers wait until the last dog is dead before they get their stuff packed and ready to be loaded onto a moving truck.

My Noon hour was cut short by an appointment I had to get my hair cut which was long overdue. My barber has been having some personal issues which he couldn’t help but share, and while seated there listening to it all, I continued to wonder why there are those who seem to jump from one fiery frying pan to another. When he told me the name of the attorney he’s using, I kept my mouth zipped and didn’t say a word. I’m sure six months from now, he’ll be cursing the day he decided to go with that one. Oh well, we all have our paths, and sometimes there are those who intentionally handpick the rockiest. All I could do, was wish him the best.

Because I’ve been wondering why I’ve been seeing so much corn being stockpiled around North Iowa, I went online this afternoon to get a few answers. Well, in a nutshell, the price of all grains are going up and especially corn and soybeans. The drought in the Dakotas and out West has weakened our reserves, along with those similar crops which had been planted in various parts of the world which have also experienced crop failures. The grain brokers are closely watching the 2nd largest world producer which happens to be Brazil because they’re also having some weather related issues with their crops. They’re saying that if they don’t get the rain they need these coming three weeks, they’ll not be having near the yield they normally have, so if that happens, be prepared to see our meat prices climb even higher. Most don’t realize how many industries are corn and soybean related, but if our global grain reserves are diminished, everyone’s going to be hurting. The commentator mentioned that we’ll be needing bumper crops for the next two growing seasons to get back to normal.

I’m sure the farmers are looking at what corn is being traded at right now which is over $5.00 per bushel and thinking they’ll have even more extra money to spend, but not for long, because their fuel and fertilizer bills will be spiking as well. It sounds like a vicious circle doesn’t it? Well, it is and the ones who’re going to be feeling the pinch the most are going to be the consumers, and if it looks like we’re going to be headed for run-away inflation, our Federal Reserve will start raising the interest rates in an effort to slow it. But again, those measures will be affecting first-time buyers wanting to purchase homes.

Several days ago I happened to read an article in one of our Realtor’s monthly publications, and after giving it a thorough reading, I’d say we’re going to be seeing even more of a housing shortage in our metro areas. I was shocked when reading that prospective tenants are going into bidding wars over housing units that come available for rent. Now that’s troubling news which could have long-reaching effects on those wanting to some day own their own home. The author mentioned that one of the best bets, would be for investors to re-skin commercial buildings and turn them into housing units. I did mention it to one of my investors and his acid comment was, “That’ll be the day I try something like that in this City because of how difficult City Hall can be when trying to do a build-out.” I couldn’t help adding, “There are a few who fully enjoy setting up their un-necessary road blocks.” I heard just recently that one of our developers lost his cool when trying to get something approved by loudly saying, “If I were doing the same thing in Clear Lake, it would’ve already been approved and built.” Ouch.

My last appointment was with a young man who came to office to sign his lease and pay the rent for the remainder of November. He’s moving here from another city, which gave me cause to welcome him to our community, along with insisting he call me if he has any questions or concerns. I hope to some day sell him a home if he likes it here.

Tonight’s One Liner is: Just as our eyes need light to see, our minds need ideas in order to conceive.

Joe Chodur

About the Author | Joe Chodur

First of all....Joe Chodur really doesn't like talking about himself but this is what we have found out about him.

Joe Chodur began his real estate career in 1981 during the...read more about: Joe Chodur

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