Trade The Farm

Farmers haven’t had this much to sing about since Rodgers and Hammerstein wrote “Oklahoma!” In the last 6 months, wheat prices doubled after more corn was planted to support the ethanol craze. Throw in a drought in Australia and you've got record wheat prices. Will it go higher, and what are farmers looking to plant now?

Roger Neshem, a farmer from North Dakota joins the panel for this conversation. Here are excerpts from what was said.

You planted 15%- 20% less wheat this year. Why?

Last fall when we were making planting decisions the price of corn was going up and the price of wheat was staying flat, says Nesham. When it came time to plant it was a better deal for us to plant corn and that’s what we did.

Are you surprised at the price you’re getting for wheat now?

Kind of a perfect storm has hit the wheat market, replies Nesham. It’s rallied over $2 since harvest and that’s just unheard of.

Is this as far as wheat can go?

I never say never, but it’s getting lofty, says Nesham. There are a lot of indicators that suggest to me it’s topped although some say it could still jump about $1.

Have you seen corn prices drop?

They went down through the summer, but we’re definitely off our lows, Nehsam says. For me, the acreage battle between corn and wheat, continues.

As prices go up, are you able to invest more in your farm?

We do plan to update some equipment which would postively impact Deere (DE) and CNH Global (CNH). But Monstanto (MON) and Agrium (AGU) are companies that will always get our money because we will always go to them for seed.

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Trader disclosure: On Oct 1, 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders: Macke Owns (HAS), (ATVI), (INTC), (SWY); Najarian Owns (GS) Options; Finerman's Firm And Finerman Own (FLS); Web Caller Roger Nesham Owns (DE), (AGU)