Posted on 09/28/2016 9:02:11 PM PDT by Tolerance Sucks Rocks
In 2006, Chris Hausman, a fourth-generation Midwestern farmer long accustomed to depending on government support for survival, traveled across the world to witness a revolution in agriculture.
It had been more than 20 years since a left-leaning government in New Zealand chose to eliminate government subsidies for farmers, and Hausman was surprised at what had transpired since.
“I will tell you it was a shock to their agricultural system,” says Hausman, 58, who farms corn and soybeans on a 1,500-acre plot 150 miles south of Chicago.
“You had a system dictated by government programs that was thrown out the window overnight,” Hausman adds in a recent interview with The Daily Signal. “But the farmers kind of reinvented themselves and now New Zealand is a powerhouse when it comes to agricultural production on the world stage.”
Hausman, like others in the industry, is careful not to equate New Zealand’s experience with what could happen in the U.S. He is thankful for federally subsidized crop insurance that his government provides.
But those who participated in this small island nation’s grand farming experiment hold it up as a valuable case study for policymakers worldwide.
“Every country is different—that’s an important caveat to put on the conversation,” said Mike Petersen, New Zealand’s special agricultural trade envoy, during an event last week at The Heritage Foundation. “But what I can say is that we did start an incredible process of innovation, guts, and determination from those people who really wanted to make this work.”
(Excerpt) Read more at dailysignal.com ...
The thing that set me off in the article was the comment that production exploded (or something to that effect).
What happens when there is an over-abundance of a product. Does it’s value remain high, or does it drop?
It’s the old supply and demand problem/blessing.
My overall goal was to see farmers not have to bear the brunt of a well meaning policy that would bring more pressure down on them.
It was also my hope that well meaning production increases here wouldn’t harm farmer’s long term interests, or long term interests.
I don’t want to see this sort of thing again.
There were boom and bust cycles due to over-planting before subsidies. Those claiming that there weren’t are arguing from an ideological position. Farmers were and are just as prone to the herd mentality as anyone else.
Thanks for your comments.
Some farmers join together to form groups that purchase equipment together and harvest together.
That helps.
Good luck to you folks. It may not seem like it, but my appreciation for the family farm goes back to when I was a kid, living on a small 120 acre farm in Missouri.
Good people, great life, one that I want to live on.
LOL
I agree, but this was an example. Every crop can develop this same problem.
Even if you diversify, you can still lose on one crop, and some folks simply don’t have the margins to breeze past that.
There are a number of factors that bring pressure to bear, so this isn’t the only issue for farmers.
Thanks.
The reasons for me addressing this was four fold.
I don’t want family farmers brought under more pressure by yanking land bank supports. Family farms are something I care a lot about.
I don’t want our food production to take off so that each farm product is worth so little they can’t get paid enough to cover their costs.
I don’t want to see more farmers driven off their farms, and the food supply to be impacted negatively.
I do want to avoid situations like this.
Another response where the person who knows it all, can’t take time to enlighten the folks he thinks are so stupid.
Folks are always hawking some other place that does things better. If New Zealand’s production had exploded as much as they say it did, there would be an over-abundance of food, and farm product prices would be at rock bottom.
This isn’t an issue of leisure suites, boards, hammers, oil, or gas. It’s an issue of food, something we can’t get along without.
So yes, some things are important enough to do things differently on. Food is one.
I agree on the issues of pressures and the herd mentality.
My point is that I know there will be folks like this, but I do not want to push additional people over the edge.
It’s an issue that should be discussed. I don’t think it’s as black and white as some folks do.
The program is abused by people who are in no way farmers. Politicians are especially prone. Weed out the abuse, leave the programs in place. We’ve had a great food supply with low prices for a very long time.
It’s another government dislocation in the market.
The acres devoted to corn had been trending down for decades before the ethanol boom. Corn devoted to ethanol is grown to meet the demand. With ethanol less profitable now, corn acres will trend down again.
Without ethanol subsidizing animal feed, corn production would dramatically decrease and become more expensive, but not before a lot of less-nimble producers get forced out altogether. Likely we would end up importing animal feed from China instead of exporting it.
The ethanol thing sure turned South.
I think they’re trying to bump content again. Maybe not. I don’t follow it real close.
At any rate, the whims of the government have big impact.
Corn prices are trending back to where they were before the ethanol boom started 10 or so years ago. Very low. It’s a mature market.
Like livestock, corn seems headed to being raised on contract instead of farmers themselves hedging futures.
Or air or water or shelter or medical care.
Actually agricscam in its current socialist manifestation would not exist without oil. We could roll it back to pre oil yields but that would create famine conditions.
Are you really trying to imply that we would go without food if not for our gov buying farm votes with subsidies?
Modern farming is very sophisticated because it has to be. Consider agricultural markets. By and large they are 'commodity' markets. What does that mean?
In this case, there are so many individual producers of corn, for example, that no one farmer or group of farmers can move the market by entering or exiting. In the parlance of Economists, they are market 'takers,' not makers.
Mornings start early. The light comes on in the kitchen at 4:00 AM. Coffee pot is turned on, and the radio...for the morning AG report. Prices in Chicago for various products, for example.
You can find farmers in their combines, harvesting wheat...and checking markets on their laptop.
Farming has become efficient because it's become more complex. If you check with the ag university in Iowa, for example, you'll find they've catalogued soil types across the state...and combined that with mini-climates to predict the perfect crop and type of corn, for example. This location in this county would do best with this hybrid, for example.
Combine that with the ability to sell futures in products, contracts with conglomerates such as Conagra, Simplot, etc, and you've got savvy producers who understand the product chain from one end to the other.
Those who shoot from the hip (as in all industries) don't last for long. Some producers survive because of the government, others in spite of it.
That sounds good. I appreciate the information.
I am saying that with full production, we could glut the markets. Glut the markets, the prices drop. More farmers go under. Others are harmed.
In time yes. Fewer producers is not good.
A reasoned harvest is what we need. I understand why some balk at this. Hey, I could be wrong. It’s the way I see it.
It worked great for the USSR.
Thank you Gogeo. I have heard all that over the years, but I’ll admit it didn’t all register when I was writing earlier.
The broad concepts did, but it probably doesn’t look like it.
I know our farmers run circles around many of us. It’s a hard life and they make the most of it. I haven’t meant to label any of them as less than smart or capable. Some of the best observations made are made by farmers, on a variety of topics.
I appreciate your additional comments. Good food for thought.
Take care.
So you think our farms are on a par with the U.S.S.R.
No you don’t...
Knot heads do what they do.............
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