Posted on 02/14/2005 7:43:05 AM PST by 1rudeboy
here's an interesting article i found posted at a ag forum i read at. it's about the success of getting rid of gvt subsidies, in of all places - New Zealand.
http://www.agritech.org.nz/subsidy.shtml
Subsidy-free and profitable agriculture
Farmers in most countries continue to face radical change, through the reduction or elimination of government subsidies, driven by the need to reform world trade within agricultural products. Farmers fear for the future of those who work on the land, their families, and for the rural communities. They fear the long-term destruction of the traditional farming systems and the rural way of life.
Yet the truth is quite different, and for family farming there is life after subsidies. Indeed, life after subsidies is better than farming that is dependent upon state handouts.
(continued at link)
Basically you would end up with vertical integration on a scale much closer to the defunct USSR than would be comfortable for me. I can buy corn right now if I want to, but take away CBOT and then ADM or Cargill will tell you what they want to pay. I would wager if that you took the lean hog contract from the board then the pork industry would be top to bottom with a few industrial corps squeezing what little life is left of the independent producer.
The land will still be there the banks that loaned the money won't be that was my point.
Get rid of all the farms and just produce "Soylent Green".
Hey, it worked on the Twilight Zone... "To Serve Man"
Consumers shouldn't have a say in the price of crops, they should have a say in the price of the food they purchase from the BIG corporations who really rack up the $$.
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Maybe you should buy some stock in those BIG corporations who are racking up all those $$. If you did your homework, however, you would most likely invest your money elsewhere as the food business provides only modest profitability. That's why there is so much consolidation going on within the industry.
"ADM or Cargill will tell you what they want to pay"
They already do that! It is called basis!! Right now, our elevator pays us 30 cents under the current CBOT bid. Not all of that goes to the elevator either! When cargil or adm doesn't need grain, they widen out the basis. When they need grain they narrow the basis. They can manipulate the grain out of the farmers hands by tanking the prices and scaring it out of their hands. "It's going down, I had better sell!!" Last year in beans, the basis was positive because the supply was so short. As far as the hog market goes, there aren't any independent producers around here any more. They all feed for someone! Tyson owns the local hog pack, as well as a few beef plants here in our state. They shut down about 3 of their beef plants the last month because of 'short supply' they called it, but really it was too high priced cattle! The lamb market isn't traded. It works! I know the CBOT will never be gotten rid of, but when people talk about a free market, it just isn't one unless I can go to my elevator and say, this is what I need for my product!!!! If they don't want to pay me that amount, they don't buy it. If someone can produce it cheaper than me, fine! I go out of business or I figure out a way to produce it cheaper or better.
I get annoyed when people blame the CBOT for low crop prices. Please. The brokers are conspiring to keep prices low? Get a supply & demand clue.
I never said the vast majority of farmers are getting rich at the expense of taxpayers, but some are.
We work hard for a living and just want to be able to make a profit at what we love to do. It is hard work for little return.
Well, gains in efficiency and productivity tend to increase production. Increased production tends to reduce prices. I guess we could turn the clock back to 1900 when 40% of the workforce was in agriculture. That might raise your prices and profits.
But he's a farmer. No fair!!
You probably should ping him if you're talking about him.
Gee thanks, mom.
It's true, subsidies DO make our sugar cheaper by assuring that abundant supply always exceeds demand.
However, Toddsterpatriot is a flying monkey who thinks it's "clever" to spin this basic fact of economics inside-out and upside-down until he "logically" comes to the exact opposite conclusion. Then he'll mock the hell out of you when you persist in proving him wrong. Frankly, I have better things to do with my time than waste all day "debating" the jerk, so I'm glad he didn't ping me.
Enjoy the Willie logic. American sugar at 3 times the world market price is "cheaper" because of subsidies!!
Maybe someone inhaled too much choo-choo exhaust.
Just like I said, I have better things to do.
Nope, don't see it happening here. Another "theory" of yours? LOL
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