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Veteran Contributor
Posts: 147
Registered: ‎09-09-2010
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Accepted Solution

its ironic

the more we produce the cheaper the price gets and the cheaper the price gets the more we produce to make up for it. that is weather permitting of course!

Friend
Posts: 2
Registered: ‎05-06-2015
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Re: its ironic

I fully agree.
Always speak much in increased productivity, when in fact we should pursue increased profitability.
There are many productivity contests, we should have profitability contests.

 

 

Advisor
Posts: 7,351
Registered: ‎02-06-2014
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Re: its ironic

The nature of the commodity long cycle.

 

Commodities differ, but in the ags, land that is brought into production tends to stay in production as long as net rent is greater than 0- actually a bit beyond that as somebody will keep trying until they run out of money.

 

Low prices do cure low prices but only about twice over the career of the average farmer.

Advisor
Posts: 7,351
Registered: ‎02-06-2014
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Re: its ironic

Also for the umpteenth time-

 

I don't think anybody noticed the little trick in the construction of the current neoliberal ag program which basically makes APH like the new Corn Base.

 

Thus there is a built in long term penalty for going LISA even if it would be logical otherwise.

Veteran Advisor
Posts: 927
Registered: ‎05-20-2010
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Re: its ironic

[ Edited ]

What does "neoliberal" mean? TIA

 

As you all know, I have been railing against the subsidized insurance boondoggle for years. Subsidizing ridiculous behavior like fall tillage, or allowing a "Family Farm" business model from 100 miles away to drop in and pay market rent plus $100 and they are insured against losing cash...like a I have said often...we will reap what we have sown...

Advisor
Posts: 427
Registered: ‎08-31-2012
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Re: its ironic

Like many government programs crop insurance exists as a "payoff" to fat cats.

If the feds don't spend the money alot of farmers sure wouldn't and the company execs couldn't afford some of their toys.

I agree with you TIME that it skews a variety of markets and allows a higher risk threshold.

 

 

Friend
Posts: 2
Registered: ‎05-06-2015
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Re: its ironic

I'm a producer in Brazil. Here we have nothing insurance. Absolutely nothing. Everything is risk, or you produce, buy and sell well, or you are bankrupt.
I envy American farmers to have access to these mechanisms.

Smiley Wink

Veteran Advisor
Posts: 927
Registered: ‎05-20-2010
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Re: its ironic

Careful what you envy Joel....in our system ONLY the Rich get Richer. That is the fact of the system.

 

In Ag, or in the banks, where we transfer Trillions to the richest in the world from the US taxpayer. The only way the system can rebalance wealth is to have the foolish speculative scheems exposed and the undeserving loose their wealth. Study the US system from 1925 thru 1939 to see how that works. Wealth was rebalanced

Advisor
Posts: 992
Registered: ‎05-13-2010
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Re: its ironic

Sorry time, you and I have talked about this in the past. Tillage isn't an outdated 100 year old concept. The fact no-tillers rely on chemicals to control weeds alone should cause you pause. There is a reason we have water hemp and other weeds resistant to all chemicals used by farmers today. If there is a chemical that does control it it will be used up rapidly.
Honored Advisor
Posts: 5,118
Registered: ‎01-10-2012
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Re: its ironic

Time has backyardits, try notil on my bottoms and 8 out of 10 if not 9 out of ten years you will help reduce the amount of grain in excess.

One of the most effective herbicides is "steel"

Even after 44 years I haven't seen any resistance to an even properly applied application of "steel" by any weed species.