Chinese Farmers Swimming in Cash
Thanks to government susbsidies Which, if you subscribe to GG, you knew already and have profited handsomely from. Here's the slide from Deere's quarterly presentation that really shows the scale:
First, it's incredible that the government has basically doubled its yoy spending to subsidize farmer purchases of fertilizer, seeds, chemicals, and equipment. Not only has this contributed to rapid growth in rural China, but it's the likely driver behind the incredible results Chinese fertilizer companies have been posting this earnings.
Second, it begs the question of sustainability. The government can't and won't keep this up, which means we (and the market) should have lower expectations for the growth rates our Chinese fertilizer companies can post next year.