09-20-2012 01:18 PM
All the marginal acres will get planted to something even if it is just hay. If it wasn't for CRP holding a floor on land rents then the rent would be based on productivity. If rents fell then costs would fall. If federal crop insurance wasn't available the marginal land would still rent at a level to get planted.
09-20-2012 01:32 PM
It would seem that a person with prime land would be very happy to see the market have to bid for production off of marginal acres.
He/she would also be happy to see it not be subsidized to get planted when supplies were ample.
09-20-2012 01:35 PM
I think the landscape for agribusinesses clearly deteriorates once those battleground electoral votes in Iowa don't matter for another 4 years.
Or assuming we don't do some meaningful electoral reform in the meanwhile, 3 until the quadrennial Iowa caucus goat and pony show.
09-20-2012 01:55 PM
Without a doubt, Federal crop insurance has escalated the cost of land. Marginal land even more than the prime ground. It allows the BTO to bid up rents. Even you MT cannot argue that.
So the number one cost component of food is artifically high because the government is protecting your sorry ass. Food especially the big three of corn, soya and wheat are commodities so by definition if the cost of production falls so will the cost to the consumer over time.