Marketing

[Mizzou_Tiger]

What's the landscape look like?????

[DismalScience]

You mean after your protected status disappears.   I would guess asset values would deflate with no subsidies thereby lowering the cost of food for the masses.

[Mizzou_Tiger]

So people stop eating.......ok.....got it....

How many marginal acres will get planted????

Spending money to max yields at a loss?????

[DismalScience]

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.

[Nebrfarmr]

True enough, but without the USDA subsidizing more production, we would have been short of feed grains much sooner than we have been, which may not especially be a bad thing.

[Mizzou_Tiger]

So the price of hay will go down.....got it.....

How many bales of hay does your family eat......

[hardnox604008]

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.

[hardnox604008]

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.

[Mizzou_Tiger]

Wait....but dismal said

Wait

What

So things will get bid up against falling prices....

I'm confused......that works?????

[DismalScience]

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.