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CoreWeave Shares Tumble After Loss Widens on AI Buildout Costs · Bloomberg Intelligence

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  Speaker 1: Bloomberg Audio Studios, podcasts, radio news. You're listening to the
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  Speaker 1: Bloomberg Intelligence Podcast. Catch us live weekdays at ten am
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  Speaker 1: Eastern on Applecarplay and Android Auto with the Bloomberg Business app.
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  Speaker 1: Listen on demand wherever you get your podcasts, or watch
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  Speaker 1: us live on YouTube.
• 0:24
  Speaker 2: Anra Agrana joins us here as a tech analysts for
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  Speaker 2: Bloomberg Intelligence Core Weave. Anrara, can you we've been talking
• 0:30
  Speaker 2: about core weef today. I need a better understanding. Just
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  Speaker 2: give me the the dees function kind of definition based
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  Speaker 2: definition what core weave does and what's going on with
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  Speaker 2: the news.
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  Speaker 3: So in the most simplistic way, they are renting out
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  Speaker 3: GPUs for people who are you know, looking for any
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  Speaker 3: anywhere to run their AI workloads. That could be training
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  Speaker 3: of the models or that could be you know, the
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  Speaker 3: inference workloads from the applications that you're running. So very
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  Speaker 3: simple business model. They buy, they are a partner with
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  Speaker 3: Nvidia and Vidia also investor there. They buy their chips,
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  Speaker 3: they put it in a data center and people you
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  Speaker 3: know rented out from them.
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  Speaker 4: So when I look at the stock performance for core
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  Speaker 4: we you of course we know what iPod back in
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  Speaker 4: late March, we're seeing shares that are up about two
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  Speaker 4: hundred percent, But I want to know, why is there
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  Speaker 4: this conversation about the rally sputtering out what's really weighing
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  Speaker 4: on the stock here.
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  Speaker 3: So when you look at it and you go back
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  Speaker 3: to March, when the IPO was coming out, it was
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  Speaker 3: actually really poorly received it. You know, one could argue
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  Speaker 3: it was underpriced because not looking at the growth prospects
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  Speaker 3: of the company, but focused more on the capital expenditure
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  Speaker 3: and the expense and the laws and they have to
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  Speaker 3: go out to debt markets to issue. So that was
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  Speaker 3: the sentiment back then. And certainly within a two three
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  Speaker 3: month period all of that they've operated and the stock
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  Speaker 3: went up to you know, one sixty or so. What
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  Speaker 3: we're seeing as of last night is fundamentals are strong.
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  Speaker 3: They're still getting a lot of bookings people you know,
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  Speaker 3: using their cloud. But everybody's now certainly again worried about
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  Speaker 3: interest expense and you know, capital expense and so forth,
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  Speaker 3: and that's the growing pain. I think this company will
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  Speaker 3: have to endure being a public in public markets, because
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  Speaker 3: you know, you could do that as a private company,
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  Speaker 3: but very difficult. You know, people will get excited and
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  Speaker 3: people will you know, worry about one thing or the other.
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  Speaker 3: At one point, all.
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  Speaker 2: Right, I have to ask ellad just about what we
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  Speaker 2: saw yesterday about refreshment memory on this whole Google Chrome thing.
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  Speaker 2: Who's put a bit out there? Give us what's going.
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  Speaker 4: On out there that just kind of jumps We need
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  Speaker 4: to know what.
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  Speaker 2: Do you know?
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  Speaker 3: Yeah, it's asking.
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  Speaker 2: That question, So just tell us what the news is.
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  Speaker 3: Well, so what's happening is there is again you know,
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  Speaker 3: the DJ case that's happening with Google and the whole decision,
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  Speaker 3: you know, the argument of trying to break it up
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  Speaker 3: and why chromism monopoly in the whole thing. Perplexity on
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  Speaker 3: the other hand, as also a search AI search product
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  Speaker 3: and one way they can gain a lot of users
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  Speaker 3: if they have ability to control Chrome. But practically speaking,
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  Speaker 3: I mean, if you look at you know, some other
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  Speaker 3: paperwork that was filed as part of the DJ case,
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  Speaker 3: that product is probably worth not the fifty billion dollars.
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  Speaker 3: And I have no idea why company that's probably you know,
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  Speaker 3: that's probably valued at about eighteen billion or so wants
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  Speaker 3: to buy this asset. And you know, it just sounds
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  Speaker 3: a bit you know, strange or a bit unusual for
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  Speaker 3: us to even for them to even be talking about it.
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  Speaker 4: Am I the only one that didn't know that Google
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  Speaker 4: Chrome was up for sale.
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  Speaker 2: Well, it's not that's it's normal a browser.
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  Speaker 5: It's just right.
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  Speaker 2: It may be deemed a remedy that will be ordered
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  Speaker 2: by the judge.
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  Speaker 3: It would be too harsh. But you know, again, this
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  Speaker 3: is one of the hypothetical twenty things that can happen.
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  Speaker 3: But at the same time, I mean, let's I'm just
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  Speaker 3: you know, making this up. Google may decide, you know what, shareholders,
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  Speaker 3: you can have this as a you know, separate company altogether.
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  Speaker 3: That would be so much more powerful, you know, with
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  Speaker 3: Gemini and all that stuff. But again, you know, from
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  Speaker 3: our ex boots, we don't think that's gonna happen or
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  Speaker 3: on the table, but yes, it is expected, you know,
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  Speaker 3: in the long laundry list of things that can happen,
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  Speaker 3: this is one of the things that people have talked about.
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  Speaker 3: Stay with us.
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  Speaker 2: More from Bloomberg Intelligence coming up after this.
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  Speaker 1: You're listening to the Bloomberg Intelligence podcast. Catch us live
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  Speaker 1: weekdays at ten am Eastern on Apple, Cocklay and Android
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  Speaker 1: you get your podcasts or watch us live on YouTube.
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  Speaker 2: In other news, we had a little m and a
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  Speaker 2: trade here today which I think is very interesting. We
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  Speaker 2: have Guilden, which is a Canadian company buying Haynes brands.
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  Speaker 2: Like I'm the underwear company two point two billion dollars,
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  Speaker 2: Abagail Gilmore and joins us here Bloomberg Intelligence. But we're
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  Speaker 2: an at leisure analyst here, Abigail, thanks for joining us
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  Speaker 2: here in study. Can you tell us who is Guilden
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  Speaker 2: because I don't think a lot of people know of them,
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  Speaker 2: and why are they buying an underwear company?
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  Speaker 6: Yeah, definitely, that makes a lot of sense. I think
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  Speaker 6: a lot of people probably own Guilden and don't know
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  Speaker 6: it right because it's really a basic apparel manufacturer. So
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  Speaker 6: they create the T shirts that then they sell to
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  Speaker 6: your favorite sports teams or to Walmart, and then they
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  Speaker 6: put the logos on it. So they're heavily in the
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  Speaker 6: printware space. They do have exposure to innerwear, which is
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  Speaker 6: what Haines is. Haynes' is, you know, the basics underwears,
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  Speaker 6: bras teas, and they used to be in active wear
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  Speaker 6: un till they spun off Champion so they're very complimentary. Yes,
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  Speaker 6: they spent off Champion about a year ago.
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  Speaker 4: Okay, interesting, and I definitely remember Gilden, as you mentioned,
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  Speaker 4: when you just start to look into the tags of
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  Speaker 4: your T shirts, you'll start to see the name pop
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  Speaker 4: up there. But I mean, what's the latest with consolidation
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  Speaker 4: more broadly in your industry. I know you have a
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  Speaker 4: lot of names that you cover that are doing a
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  Speaker 4: lot of mergers.
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  Speaker 6: Yeah, definitely, I think you know, it comes out of
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  Speaker 6: time with tariffs and costs looming as well as I
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  Speaker 6: mean for this acquisition, I think it's been considered for
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  Speaker 6: a while as actually there was a whole proxy battle
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  Speaker 6: about it a few years ago where they actually ousted
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  Speaker 6: the CEO over it, and then he has returned earned
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  Speaker 6: since then and they completely changed the board over So
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  Speaker 6: this didn't come completely out of nowhere. But I think
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  Speaker 6: it makes a lot of sense just in terms of
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  Speaker 6: you know, Gilden's building out their whole manufacturing footprint, and
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  Speaker 6: it's once again really complimentary. They already kind of make
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  Speaker 6: everything that Haines does, but on a larger scale at
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  Speaker 6: a lower cost.
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  Speaker 2: And Haines Brand's based in Winterston Salem, North Carolina, yeah,
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  Speaker 2: I'm sure Sarah talk to us about You mentioned that
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  Speaker 2: the tariffs. How is it impacting your world, because I
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  Speaker 2: would think that would be immediate.
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  Speaker 6: Yes, so it definitely is impacting my world with you know,
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  Speaker 6: the footwear brands. But for Guilden and Haines, actually Guilden
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  Speaker 6: is one of the largest users of US cotton, so yes,
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  Speaker 6: they are probably one of the largest ones, and so
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  Speaker 6: that is actually going to help them not have to
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  Speaker 6: deal with as many tariff costs just since the US
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  Speaker 6: the products are made with US cotton, so they're subject
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  Speaker 6: to a lower tariff rate, so that's actually something that
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  Speaker 6: they can benefit from. They also are less exposed to
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  Speaker 6: Asia and more in Central America as well as Haynes brants.
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  Speaker 6: Their manufacturing footprints are very complimentary and overlap, so they'll
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  Speaker 6: be able to kind of mitigate that pretty well. But
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  Speaker 6: for Haynes brands, it guilding gives them a much more
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  Speaker 6: financial stability and opportunity for that I.
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  Speaker 4: Want to quickly move to on holdings kind of. This
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  Speaker 4: is also a company that you cover, Sneaker firm. They're
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  Speaker 4: basically seeing analysts and Jeffries that are saying that twenty
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  Speaker 4: twenty five will mark the peak in the company's sales,
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  Speaker 4: and I want to know what is your reaction to
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  Speaker 4: this downgrade here.
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  Speaker 6: Yeah, I don't think we've seen the peak of on
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  Speaker 6: I think they're just starting in apparel. Apparel. They actually
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  Speaker 6: sold more units of apparel this quarter than they did footwear.
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  Speaker 6: I grew over seventy five percent, and they're really just
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  Speaker 6: getting started with that. They're also really just getting started
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  Speaker 6: with their DTC expansion, opening stores as we've seen in
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  Speaker 6: New York a few pop up, but they're doing really
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  Speaker 6: well with that, so they I think to have a
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  Speaker 6: long runway for growth.
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  Speaker 2: Stay with us. More from Bloomberg Intelligence coming up after that.
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  Speaker 1: You're listening to the Bloomberg Intelligence podcast. Catch us live
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  Speaker 1: get your podcasts, or watch us live on YouTube.
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  Speaker 2: Well, you know what I'm doing, I'm finding myself doing
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  Speaker 2: more and more, which is just a self checkout, you know,
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  Speaker 2: whether it's at the supermarket, going to the self checkout line,
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  Speaker 2: scanning your thing, paying airports you know they don't have
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  Speaker 2: cashers anymore, and you go, go, go get a snack in
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  Speaker 2: a bottle of water. So more and more, and I'm
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  Speaker 2: always wondering who.
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  Speaker 3: Does that stuff?
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  Speaker 5: Who does that behind it?
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  Speaker 2: I think the next guest can help us out here.
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  Speaker 2: So get Minor joins us. He's a chief and actual
• 8:38
  Speaker 2: officer in the company's name is NYAX. It trades on
• 8:41
  Speaker 2: the Nasdaq NYAX market cap about one point six billion stocks,
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  Speaker 2: up about forty seven percent year to date. They reported
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  Speaker 2: some numbers I believe yesterday or today, Sgiate, thanks so
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  Speaker 2: much for joining us here. Tell us what you guys
• 8:53
  Speaker 2: do at NIAS. How are you guys in that kind
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  Speaker 2: of self service space in the fintech space?
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  Speaker 5: Good morning.
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  Speaker 7: So we are actually the global leader in payment and
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  Speaker 7: management solution for the unattended market.
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  Speaker 5: And what does it mean unattended?
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  Speaker 7: It's really the vending machine massles jail ivy charges when
• 9:14
  Speaker 7: it's just you in front of the machine, does not
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  Speaker 7: a shield in between. And in fact, if you bought
• 9:22
  Speaker 7: a drink in a vending machine lately at the JFK,
• 9:26
  Speaker 7: you probably used one of our Nayaks yellow devices. So
• 9:31
  Speaker 7: we have more than hundred thousand customers. We sell our
• 9:34
  Speaker 7: product in more than one hundred and twenty countries, and
• 9:37
  Speaker 7: we have a very simple mission statement.
• 9:40
  Speaker 5: To help our customers grow their business.
• 9:42
  Speaker 7: What does it mean, increase their revenue, decrease their cost
• 9:45
  Speaker 7: and through loyalty, create that stickiness with our customers with
• 9:50
  Speaker 7: their customers.
• 9:52
  Speaker 4: How do you stay ahead in today's fintech landscape? Of
• 9:56
  Speaker 4: course there's a lot of players now.
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  Speaker 7: So actually in our area there's not a lot of
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  Speaker 7: not a lot of competition. I'm talking about the payment
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  Speaker 7: and in the unattended space. So in fact, you know,
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  Speaker 7: we are the only global, as I said, a player
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  Speaker 7: in this unattended space. It's a very fragmented business and decentralized,
• 10:25
  Speaker 7: so there's a lot of small players and we are
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  Speaker 7: with our global solution basically integrated hardware, payment and services
• 10:34
  Speaker 7: all together, we can bring that to the local market.
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  Speaker 5: It's also a very highly regulated.
• 10:40
  Speaker 7: Market, so there's a lot of barriers to entry, so
• 10:44
  Speaker 7: whether it's a regulation on payment, whether it's privacy, and
• 10:49
  Speaker 7: with our global solution, with us being there for twenty years,
• 10:53
  Speaker 7: we were able to overcome that. We look at ourselves
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  Speaker 7: as a payment company and what do you need as
• 10:58
  Speaker 7: a payment company? You need basically three things. You need
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  Speaker 7: the trust, you need the scalability and you really need
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  Speaker 7: the easy doing business.
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  Speaker 5: So from a trust perspective, we build that trust.
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  Speaker 7: Over the twenty years. We have a very strong brand.
• 11:14
  Speaker 7: Look now for the yellow devices. You would see that
• 11:16
  Speaker 7: everywhere from an easy to do business with it's again
• 11:21
  Speaker 7: it's a bit to B to see. So we have
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  Speaker 7: a very you know, it's a high profile company. You
• 11:25
  Speaker 7: go to whether it's the cow wash to the vending
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  Speaker 7: machine and you see us. So B to B it's
• 11:31
  Speaker 7: all about regulation and we were able to overcome that.
• 11:35
  Speaker 7: When it comes to B to see, as I said,
• 11:38
  Speaker 7: it's in front of us and you want that in
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  Speaker 7: a nanosecond to get your snack, to get your coffee.
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  Speaker 7: So on scalability, this is where we are focusing right.
• 11:47
  Speaker 7: This is what takes time to build. And we've showed
• 11:50
  Speaker 7: that we are using more than eighty distributors all around
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  Speaker 7: the world right so we are stetying our products straight
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  Speaker 7: to the OEM.
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  Speaker 5: So when the vending machine, the.
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  Speaker 7: Massage sare the key to ride are coming from the manufacturers,
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  Speaker 7: it will already bring that NIX device.
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  Speaker 2: Talk to us about the EV business, electric vehicle business,
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  Speaker 2: how are you guys approaching that? What is your expectation
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  Speaker 2: for how that business will grow for you, So great question.
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  Speaker 7: Iv is definitely one of the three main growth drivers
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  Speaker 7: as we look into twenty twenty five and even beyond.
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  Speaker 5: There's a few elements there.
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  Speaker 7: It can be as easy as any unattended verticals that
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  Speaker 7: we're already in and we're already working with the ivygo
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  Speaker 7: Electrified America, Electrifiic Canada where we are providing the payment device,
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  Speaker 7: but it can also be where we are developed the
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  Speaker 7: management suite, the electricity management suite that has a lot
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  Speaker 7: of regulations around it, and we were able to accommodate
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  Speaker 7: data as well. And then for small businesses, which I
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  Speaker 7: haven't mentioned that, but most of our customers are small
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  Speaker 7: and small and medium businesses. That's where we provide the
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  Speaker 7: old solution, the hard well, the management electricity basically as
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  Speaker 7: well as payments. So Ivy we just signed a couple
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  Speaker 7: of days ago announced the agreement with Hotel which is
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  Speaker 7: a potential of one hundred thousand ivy charging stations to
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  Speaker 7: be deployed in North America and also in Europe.
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  Speaker 5: And many other contracts like that.
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  Speaker 7: That shows the potential with the fact that we are
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  Speaker 7: a global company, so it can be done in France
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  Speaker 7: or in the state of California, and you have the
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  Speaker 7: same exact product all around the globe.
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  Speaker 4: Are there any particular market gaps or audiences that are
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  Speaker 4: underserved that you're targeting right now?
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  Speaker 7: So you know from from in the unattended space, which
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  Speaker 7: is the majority of our revenue today, Definitely there's a
• 14:08
  Speaker 7: place on the EV to grow and the electric vehicle charges,
• 14:12
  Speaker 7: smart coolers is a very fast growing area parking as well.
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  Speaker 5: Micro market.
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  Speaker 7: So this is in the unattended, but we also are
• 14:25
  Speaker 7: stepping in into more of areas like as you said,
• 14:30
  Speaker 7: the EV charger, that is beyond the payment or even
• 14:33
  Speaker 7: the retail. What we've learned over the twenty years that
• 14:35
  Speaker 7: we're doing businesses with business with small businesses is that
• 14:39
  Speaker 7: they're still in the attendant, inside the store, inside right
• 14:43
  Speaker 7: the the whatever it is that that you're selling.
• 14:47
  Speaker 5: There's not a.
• 14:48
  Speaker 7: Good product for those small businesses, and we are as
• 14:52
  Speaker 7: we speak and expanding that into other countries as well.
• 15:00
  Speaker 2: Stay with us more from Bloomberg Intelligence coming up after this.
• 15:05
  Speaker 1: You're listening to the Bloomberg Intelligence podcast. Catch us live
• 15:09
  Speaker 1: weekdays at ten am Eastern on Apple Coarclay and Android
• 15:12
  Speaker 1: Auto with the Bloomberg Business App, listen on demand wherever
• 15:16
  Speaker 1: you get your podcasts, or watch us live on YouTube.
• 15:19
  Speaker 2: Well, the only time I get to ask the question
• 15:22
  Speaker 2: how's a US farmer doing? It's usually when we're talking
• 15:24
  Speaker 2: to somebody from like you know, Deer or Caterpill or
• 15:27
  Speaker 2: something like that, the people who make all the equipment
• 15:29
  Speaker 2: for But we want to go right to the source.
• 15:31
  Speaker 2: And boy, do we have a source on the ground.
• 15:34
  Speaker 2: Ryan Hefty. He's a co host of ag PhD TV
• 15:37
  Speaker 2: and radio and CEO of Hefty Seed Company. He's coming
• 15:41
  Speaker 2: to us from the Hefty Farm, which is located near Baltic,
• 15:46
  Speaker 2: South Dakota, which is about ten miles from soup Fall,
• 15:49
  Speaker 2: South Dakota. And he sent me a zoom map. Man,
• 15:52
  Speaker 2: there is nothing butt farm out there.
• 15:55
  Speaker 3: Holy Now, look at his background. I love it.
• 15:57
  Speaker 1: It's awesome.
• 15:57
  Speaker 2: Brian, Thank you so much for joining us here. I
• 16:00
  Speaker 2: really appreciate you taking the time. You referred to me
• 16:03
  Speaker 2: as somebody who's just the expert on kind of give
• 16:04
  Speaker 2: us a sense of how things are going out there
• 16:06
  Speaker 2: on the farm. So give us a sense, Brice, how
• 16:08
  Speaker 2: is the US farmer doing these days?
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  Speaker 8: Well, first of all, one of the things you didn't
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  Speaker 8: mention is we do farm. We farm about thirty five
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  Speaker 8: hundred crowd acres, and I would just say, right now,
• 16:18
  Speaker 8: the farm economy is not real great, mainly because commodity
• 16:21
  Speaker 8: prices aren't good. They haven't been good for the last
• 16:24
  Speaker 8: couple of years. We've had rising costs as farmers, and
• 16:28
  Speaker 8: so we're struggling a little bit. But the flip side
• 16:31
  Speaker 8: of that is we're doing as farmers a phenomenal job
• 16:35
  Speaker 8: producing food for our growing world. We might have a
• 16:37
  Speaker 8: record crop this year in the United States. I mean,
• 16:40
  Speaker 8: a lot of people forget this. We have the cheapest, safest,
• 16:43
  Speaker 8: most abundant food supply in the world. So I mean,
• 16:46
  Speaker 8: from that respect, farmer's doing great, But yeah, financially not
• 16:50
  Speaker 8: the best right now.
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  Speaker 3: Brian.
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  Speaker 4: Are tariffs filtering into any of those increases and costs
• 16:57
  Speaker 4: that you're seeing that you just cited.
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  Speaker 8: Not a lot, But I mean there's so much going
• 17:04
  Speaker 8: on with this whole trade thing. One day markets go
• 17:07
  Speaker 8: way up, the next day they go down. So it's
• 17:09
  Speaker 8: more impact on the markets in the short term. But
• 17:12
  Speaker 8: as far as our costs, the biggest thing would be
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  Speaker 8: some crop protection products maybe up just a little bit
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  Speaker 8: because of that, but not much. Fertilizer is really the
• 17:22
  Speaker 8: biggest thing right now that's gone up a lot. But
• 17:25
  Speaker 8: I mean, honestly, we source a lot of the phosphorus
• 17:28
  Speaker 8: right from here in the United States, and we're at
• 17:31
  Speaker 8: all at not record high or anything, but it's really high,
• 17:34
  Speaker 8: especially in relation to the corn price right now. So no,
• 17:37
  Speaker 8: tariffs haven't had an enormous impact to date, but obviously
• 17:41
  Speaker 8: we as farmers are very concerned about international trade. It
• 17:45
  Speaker 8: has a huge impact on our commodity prices.
• 17:48
  Speaker 2: Brian Matt from New Jersey mails in with a simple question,
• 17:51
  Speaker 2: till or no till. I have no idea what that means,
• 17:54
  Speaker 2: but I suspect you do.
• 17:57
  Speaker 8: I definitely do.
• 17:58
  Speaker 5: We've done both.
• 17:59
  Speaker 8: We've done every thing on our farm. But anyway, it's basically,
• 18:03
  Speaker 8: are you going to run over your fields and stir
• 18:08
  Speaker 8: in all the residue into the soil? So we as
• 18:12
  Speaker 8: farmers often talk about turning the ground black, So basically
• 18:16
  Speaker 8: tilling under working under that residue that we have, And
• 18:21
  Speaker 8: so years ago we had no other way to control weeds,
• 18:25
  Speaker 8: insects or diseases other than with tillage. Oh and prepare
• 18:28
  Speaker 8: a good seed bed too. Thanks to modern technology, we
• 18:31
  Speaker 8: don't have to do tillage. But the advantage to doing
• 18:34
  Speaker 8: tillage is the soil warms up more quickly. The disadvantage
• 18:39
  Speaker 8: is it's going to be more prone to erosion. Now,
• 18:43
  Speaker 8: one of the things that concerns a lot of just
• 18:45
  Speaker 8: non farmers out there is they get worried about pesticides.
• 18:49
  Speaker 8: And I would say, yeah, when we reduce tillage, we
• 18:52
  Speaker 8: have to use more pesticides. But the good news is
• 18:55
  Speaker 8: a lot of the dangerous pesticides they're off the market today.
• 18:58
  Speaker 8: A lot of things we're using now what we call
• 19:00
  Speaker 8: more natural alternatives. So, for example, the most popular herbicide
• 19:04
  Speaker 8: in the United States are one of the most it
• 19:06
  Speaker 8: comes from a tree. The most popular insecticide it comes
• 19:09
  Speaker 8: from the chrysanthemum flowers. So we've got a lot of
• 19:11
  Speaker 8: these things where they're derived from nature, much much safer
• 19:15
  Speaker 8: to human beings. And I feel great because we work
• 19:17
  Speaker 8: with these things. Every day people talk about safety to
• 19:20
  Speaker 8: food and everything else. Well, don't forget as farmers, we're
• 19:22
  Speaker 8: the ones who have to work with pesticides. So we're
• 19:25
  Speaker 8: not doing dumb things. We're not using products that are
• 19:28
  Speaker 8: super crazy, dangerous or anything like that. Just a lot
• 19:31
  Speaker 8: of misconceptions out there.
• 19:33
  Speaker 4: Are there any concerns in terms of changes in the climate.
• 19:37
  Speaker 4: Is that affecting you at all as a US farmer.
• 19:40
  Speaker 8: No, we believe what's going on with climate is mainly cyclical.
• 19:44
  Speaker 8: But I will say this, I'm from South Dakota. My
• 19:47
  Speaker 8: dad was originally a farmer from Iowa. Fifty years ago,
• 19:50
  Speaker 8: moved here and at that time they weren't really raising
• 19:53
  Speaker 8: a lot of summer crops. And what I mean by
• 19:55
  Speaker 8: that is crops that grow all through the summer and
• 19:57
  Speaker 8: all end of the fall. There was a lot of
• 19:59
  Speaker 8: small green was produced. Those are spring crops and they
• 20:02
  Speaker 8: get harvested in the middle of the summer, so then
• 20:04
  Speaker 8: there was nothing growing for a while. Well, when you
• 20:07
  Speaker 8: talk about climate change, the biggest thing a lot of
• 20:09
  Speaker 8: people want is less carbon dioxide in the air. We
• 20:11
  Speaker 8: can do that with more plants and having more stuff
• 20:14
  Speaker 8: growing longer during the growing season. And because of that,
• 20:18
  Speaker 8: we have more humidity now in our region than we've
• 20:20
  Speaker 8: ever had before because of these summer crops. So you know,
• 20:24
  Speaker 8: there's some little changes like that, But otherwise, no, I'm
• 20:26
  Speaker 8: not worried about climate change as a general statement not
• 20:29
  Speaker 8: impacting farmers.
• 20:30
  Speaker 2: Brian, your top line obviously has depended a large part
• 20:34
  Speaker 2: on just kind of where commodity prices are not much
• 20:36
  Speaker 2: you can do there. How about on the cost side,
• 20:38
  Speaker 2: how's the cost of running your farm and for the
• 20:41
  Speaker 2: average US farmer, how's that kind of changed over the years.
• 20:45
  Speaker 8: Well, equipment's a lot more expensive, but the technology is
• 20:48
  Speaker 8: good to go along with that. Seed is a lot
• 20:50
  Speaker 8: more expensive, I mean way more expensive, but we have
• 20:53
  Speaker 8: a lot better seed genetics. The cost of just labor
• 20:56
  Speaker 8: in general much much higher. I don't like the fact
• 20:59
  Speaker 8: that costs are as high as they are right now. Granted,
• 21:03
  Speaker 8: historically they aren't like the highest level ever anything, But
• 21:06
  Speaker 8: I loved it for a long time, and we had
• 21:07
  Speaker 8: super cheap interest because me, just like every other farmer
• 21:11
  Speaker 8: out there, we borrow lots of money. So if we
• 21:13
  Speaker 8: can get those interest rates down even another one or
• 21:16
  Speaker 8: two percent, wow, that would make a huge difference on
• 21:19
  Speaker 8: the cost side. So, yes, our costs are dramatically higher
• 21:21
  Speaker 8: than they used to be, but that's just that's part
• 21:24
  Speaker 8: of modern life.
• 21:26
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