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11-07-2012 08:08 PM
Grain reserve = grain stored for distribution/sale at a later date.
How many grain bins have been built over the past 20 years? What is kept in all these bins? Grain, stored for distribution/sale at a later date. Seems we already have a grain reserve which was built, managed, and maintained with little expense to the government (compared with the last grain reserve).
So whats the problem?
11-07-2012 08:23 PM
PAL: wrote: "Is it? Well, let them all starve then."
Is that what you would do?
the Govt in this story didn't "give" anything away.
After they had nothing left it took them as slaves.
What is so noble and great about that?
Do you think the crooks in charge now wouldn't do the same?
U do know history has a way of repeating it's self?
Shall we strart with your grain you say you have?
Just turn it over for the greater good.
11-07-2012 10:32 PM
So, why the wailing about demand destruction. And will those bins have grain in them when the need is greatest. Think about it.
There's no REASON why anyone would have to particiapate in a reserve if they don't want to sell to a reserve. You could still squirrel it away.
Perhaps the equivelant of the farmers 'great gold hope' is that THEY will have grain when their neighbors have none and capitalize on it.
If there is a global shortage - maybe in part because the Midwest and Plains have another drought then let people starve and governments fall. I can't really fault people for not understanding what's in it for them if worst comes to worst and there isn't anything to sell them.
I think I'm beginning to see the problem. So be it.
11-08-2012 06:10 AM
Let me get this straight. You want to take grain off the market when we are hand to mouth as it is for a reserve? You want the taxpayers of this country who are already saddled with more debt per capita than the Greeks to fund a world reserve?
You want a bureaucracy to control a major block of commodities and dole it out when there is a shortage? It would act as a limiter to good prices, Why should we want to go back to the slave wages of the 1990's?
If and when the world gets the weather to raise excess crops the quantity will automatically be stored and have an effective reserve. It will not have to be taxpayer sponsored and paid for. You are just wanting to be on the Govt dole with the mantra of saving the world from starvation when in reality you just want the taxpayers to fund your storage of excess production.
This almost "free market" scares the bejeesers out of you doesn't it?
As it is the end users have had a chance to lock in $5 ish dollar corn and the producers have had the chance to sell @$8. Only the specs would have been taken to the cleaners. Most did neither. Many did just the opposite.
The other comods have had similar chances.
We are living in the best times there ever has been to be a farmer and you want to shoot yourself AND the rest of us in the foot.
Your plan is to take away the topside of prices and stick the taxpayer with the bill for the world. I see no benifit except a short term gain as the reserve is filled then the pain goes on and on. Where would prices be now if there was an extra billion bu's of each Grain in reserve right now? Can you say limit down all next week.
Normally you post very good info and thoughts but this one just isn't one of them.
11-08-2012 07:51 AM
Create dependency? We do that every week when the unemployment and welfare checks hit the mail. The local elevator a few months back was blending seven year old corn off. We for the most part already have a grain reserve.
11-08-2012 08:24 AM
We've built a cost structure into this thing that would make it very difficult for most if prices retreated to say, $3 in corn, $7 beans, 4 wheat.
Not saying we shouldn't just let that happen, saying that many will be hollering for help if it did, without support.
A grain reserve could set a floor somewhere above that, with no net public cost.
On the other hand, ag interests are lying through their stinking teeth as to what the potential budget exposure is for using revenue crop insurance as the safety net.
And even then, after we'd pay out untold $billions. support would erode over time as set prices declined.
The other thing you could do, I gueuss, is just keep burning the surplus and keep world supply on edge ad infinitum.
11-08-2012 09:20 AM
I been through most of the western corn/midwest wheat belt in the last month. We have a huge grain reserve already in place and in farmer control or farmer related control. An amazing number of mega large new grain bins have been built over the last few years and most are in and controled by the local folks in Agriculture. We will eventually fill them as weather permits.
Lets not fall victum to hiring uncle sam to manage it. It will be one more reason not to be in agriculture.
11-08-2012 09:44 AM
The grain bins are built to offer farmers options. Such as a more timely harvest schedule and control of product. For example ethanol plants usually have little on site storage and their corn requirements are fairly static all year long. Some one has to hold that inventory and they need to be paid for the cost of storage and interest incurred in the process.
I am somewhat amazes that there is so much venom toward a government handling a reserve program, when capitalism is so cruel in addressing social needs. Do anyone really think that these corporations would hold inventory without the promise of extensive profits? The safety net would evaporate along with windfall profits opportunity.