Skip to comments.America's grain stocks running short (food security and export control?)
Posted on 02/25/2008 5:08:27 AM PST by TigerLikesRooster
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The FDR/Truman and following ag was to limit acreage and buy up excess production at a more or less fixed price. The government right now has no farm program. The recent “Freedom to Farm” ag law was put in place in the 90s when the Asian and Russians bought our excess production. I understand that our government no longer buys grain, but the “Freedom to Farm” law provided that if the market price dropped to some ridiculously low value, the ferment would pay the producer the difference between that value and the market price - kind of a floor. The floor value hardly covers production costs.
The Russian and Asian economies tanked, in my opinion greatly influenced by an individual who benefits greatly from international monetary chaos and the commodity prices went below that floor value. They stabilized at that low level until the ethanol “boom” the last year or two.
“So youre in favor of mandated ethanol consumption; Why not remove the government mandates and let the free market decide what farmers produce?”
It is my understanding that the “ethanol mandate” is a clean air requirement for fuels. The previously required substance does bad things to ground water if gasoline leaks into the earth.
>>If they pull the same crap they pulled back in 1973 like slaughtering calves and chicks before they went to market, then their arses should be tossed in jail.
Their property they can do what they want. This is not Chavez’s country.
When corn was $2.30 a bushel a couple of years ago did you bitch about farmers not being able to make their payments?
Wheat prices always go up when the climate is colder.
I think you just argued that corn should be illegal because opium is.
Great. What about getting rid of the mandate?
Will this corporation send someone over to break the ice out of my water tank in the morning? To clean off my feed lot while the weather is warm enough that the mix of manure and urine doesn't freeze solid, but still cold enough to run the spreader over my 2008 corn ground? Maybe the corporation could run down to Portland and sit in line all day to pick up a load of DDG's or at least pay the fine if DOT notices that one of the marker lights is the wrong color. Certainly the corporation will stop by this summer and drive the haybine, and help with prayers that the rain holds off until after baling is finished. And what if Mrs. Lucky bales another rattlesnake this summer? She says she's gettin a job in town if that happens again; does the corporation have someone else they could send over to be by business partner and nurse and spiritual adviser and cook for the last couple of decades of my life? Could the corporation at least send somebody over to help with the first calf heifers?
You seem to know that this farming for a profit is all pretty easy after all, no more difficult, in your opinion, than becoming a junkie.
OK, I readily admit that this is unfair, as you have been very candid with me, but I've trapped you a bit.
I'm sure you remember Gulf War I. That war was fought for the express purpose of insuring the free flow of oil. It was a justified war, one that most patriotic Americans supported, including both you and me I'm sure.
That was a subsidy to the oil companies. Imagine for a moment if we had left it to the oil companies to figure out what and how to deal with Sadam. They may very well have come to some terms, but probably not the terms we have today.
Really? Which oil companies benefited?
Thanks for that, now that you remind me, I do remember those things.
Something similar happened in the 90’s (I think that was the time, I had already left farming) but hogs went down to 10 cent lb. It was caused by over production, the ever-present nemesis of the farmer.
That meant you could buy an entire market hog for $20. Having raised over 200,000 hogs myself, I know that those guys had at least $80 in each animal. That lead to bankruptcy for a lot of hog farmers, opening the door for the mega hog farms that raise several hundred thousand market animals each year.
The companies who were in the oil business in that part of the world.
I don’t know their names, but your question made me realize that it may not have even been American companies who were benefiting from our subsidies.
Wouldn't oil companies benefit more from their oil going up to $200 a barrel? I think maybe the oil consumers benefit from that subsidy.
Maybe. Call it an unwanted subsidy.
The same is true for the money going to the famrers.
I was opposed to the farm programs even when I began farming in 1969. I probably inherited that dislike from my father.
Nevertheless, we were both enrolled.
Although the paperwork was long, it basically asked: Do you want to farm? YES, or NO.
If YES, sign up.
Just as the consumers benefit from the subsidies paid to farmers. The farmers ended up in a financial trap, the consumers ended up with cheap food.
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