GFM Network News

Historical examples show that hyperinflation is a near-perfect storm of political, social and economic factors.

Hyperinflation requires certain triggers

Inflation is more common and easier to plan and invest for

There’s been a lot of talk about inflation and even hyperinflation lately. So in a last of a series on inflation, money supply and interest rates, I thought it would be a good idea to see what happened during the infamous hyperinflation of the 1920s German Weimar Republic. And, to see if similar conditions could

Watch with interest, what goes down…

Watch with interest, what goes down…

Rates will have to go up someday, but nobody can predict when

Last month, I looked at rising commodity prices, money creation and whether inflation may or may not develop. This month, we’ll look at what all that might mean for interest rates. Interest rates, according to economic theory, are made up of two components: an inflation figure and the real rate of economic growth. These components

Is inflation risk overhyped?

Is inflation risk overhyped?

A lot of people — perhaps too many — are talking about inflation

A lot of people, perhaps even too many people, are talking about inflation. I say this because when there’s so much attention on a topic, you have to wonder if it’s being overhyped, or if maybe there’s something more to it. Various inflationary factors are starting to appear. Recent U.S. government reports show signs of

Comparing crop condition to yield. Bottom line, weather markets make for both a challenging production and pricing environment.

Lots of weather left this growing season

Examining the numbers suggests a poor start doesn’t doom a crop

“Rain makes grain,” or “Seed into dust and the bins will bust,” and of course, “Wheat is a weed, you can spit on it and it will grow.” All these old sayings are really great because there’s a lot of truth in those time-tested nuggets of wisdom. Anecdotal sayings have a lot of validity to

overhead view of farmland

Farmland has been a solid investment

Between rental values and appreciation, it can easily equal or beat other options

In addition to keeping an eye on the daily, weekly and monthly gyration of grain prices, we also need to take a step back to regularly review bigger-picture, longer-term business decisions and investment plans. Whether it’s selling the farm, retiring from active farming, transitioning to the next generation or looking to expand and diversify your investments, farmland values are

What we know and what we don’t

Perfect information isn’t possible, which is why having a plan is so important

If you’ve ever read any Malcolm Gladwell books, you’ll know that he makes some very insightful connections across different topics. In the process, he uncovers some underlying fundamental truths about how people and our world really work. His most recent book, Talking to Strangers, makes you think about how we deal with the unknown and

Crops like soybeans, corn and oats are all showing good margins and will compete with canola for acres in Manitoba.

Canola looks pretty profitable, but so do a lot of other crops

Examining Manitoba's break-even yield risk ratio

Before you think we’ll see canola seeded from fence post to fence post this year, it’s good to look at some numbers. And while canola gets a lot of news coverage because of its futures market, the good news this year is that most other crops are showing high prices as well. However, while these

When to keep your crop in the bin

When to keep your crop in the bin

Storage can be your friend when marketing grain — but only sometimes

The famous line, “You got to know when to hold ’em, know when to fold” from the Kenny Rogers song “The Gambler” also rings true in grain marketing. Which grain to hold in the bin and for how long is influenced by many factors. Certainly an important component is your storage infrastructure. How much bin

Figure 1.

Commodity markets simmering down

It looks like a much calmer ride could be in store for markets this year

There’s no denying 2020 was an unprecedented year. What surprises are in store for us this year? After so much uncertainty last year triggered by COVID, it’s easy to think that the surprises will continue into 2021. But, maybe the biggest surprise of all will be that there will be no big surprises this year!

We don’t know exactly how interest rate trends will evolve nor what the consequences will be. – David Derwin.

As the calendar turns

2020 illustrated volatility in stunning fashion for market watchers

It’s that time of year again, as another calendar page turns. I’m sure we’re glad to see the end to this year, although that doesn’t mean things have magically changed on January 1. At least now we can take a look back with a better understanding of where we’ve been to help figure out where