Changing The Rules In The Middle Of The Game

[k-289]

Future 92  -  I  forgot  another  -  FEDERAL  CROP  INSURANCE   -    ?  

Future  92  -  hello  -  hello    must  have  a  bad  connection  -  -   -

[k-289]

BA   -  Interesting 

[BA Deere]

Okay I`ll start out with "just my opinion" I don`t always say that, but as much as I post, it would be difficult   🙂     But communism and capitalism intersect somewhere over the horizon and perhaps we`re approaching that point?    Okay, in the Soviet Union, there was big collective farms, kind of like a BTO`s operation though not as fancy of machinery and smiley faces on employees.  Also the crops weren`t as pretty as on the BTO`s farms.  However, capitalism has in a way made "collective farms" work...in a way.  

The operator/grower/producer whatever you want to call him has amassed a "collective farm" but he`s under the illusion that "he`s the boss"...his banker might think differently 🙂  but so far it`s working, he`s paying his employees enough to be happy.   Technology and chemistry enables huge acres to be covered in a timely matter by employees that don`t directly have "skin in the game".   And it works better than the 1950`s farmer that lovingly cared for his sows & litters and 4 row cultivated his crops, certainly better than the old Soviet system of peasants loading oat shocks and hauling them on their backs to the treshing machine.  

Capitalism has figured a way to have one BTO "grower" that`s under the illusion that "this is all mine!  Bru-ha ha ha"  but he answers to a banker, who in turn answers to his bosses and the bank examiner as to whether the grower stays in business one more year.   I`m not saying it`s a evil plot or anything, the marbles have all rolled to the low end of the table and that`s probably the natural progression of things. 

[k-289]

And   TAXPAYER  -  SOCIALISTIC  FEDERAL  CROP  INSURANCE   is  on  the  menu  ? 

[sw363535]

Ba I enjoy your entries

Just a comment. It seems to me the current US ag system and the ussr collectives are similar, at least in the fact that they are both political creations of a leadership based on social engineering the masses.

Not sure free enterprise is still alive. 🙂

[BA Deere]

Thank you SW.  I agree about free enterprise, the trouble is capitalism doesn`t have a press agent so it rarely gets credit for it`s accomplishments.  The government has a terrific press agent ask Obama who saved the world from the 2008 financial crisis and he`ll say "Obama did!" asl hank Paulson and he`ll say "Hank Paulson did!" ask Timothy Geithner and he`ll say "Why Timothy Geithner saved the world!".   But capitalism saved the world when they ended that horrible "Mark to Market".   Government caused the financial crisis with 1% fed funds rates in `03 `04 which greenlighted people buying homes they couldn`t afford.   Hate to say it but that unprecedented 0% interest rates from `09-`16  that greenlighted a lot of $14,000 land to be purchased, fiddler wants paid!

[JimMeade]

Are you all ready to go back to diverse farming?

[BA Deere]

Hey Jim, right now I raise corn, beans, hay and oats I raise hogs farrow to finish and sell them in a niche market, also cow/calf to finish.   I think everyone should do that, however you`d have to give up your dreams of farming the whole county and being crowned "Mr Corn King".

[sw363535]

Jim your assumption is wrong.... farms still are diverse -----      Large land farmers are likely to be diverse with investments in livestock and other commerce.

Large farms are bigger than before and small farms are bigger than years ago.  And across the country there are fewer and fewer locations that support small farms without outside primary Jobs.

Your comment is probably more about size than ---- 

The advantage of size has always been there.

Technology and regulation have expanded the advantage and limited the ability to get from small to big.

But in 1965 the larger producer had advantage in marketing and purchasing power-- just as he does today.  Nothing new under the sun.

[BA Deere]

There are a lot of corn and bean jockeys that also have a couple 5,000hd hog finisher sites for manure and a little beer money, but the gravy in that Ponzi scheme is less juicy than it once was.  I`m going to contradict myself a little on the advantages of size, true Mr Bigshot buys DeKalb hot numbers for $140 a unit, but a little guy that believes $99 Epley seedcorn does just as well, the little guy has less cost per acre.  The little guy can shovel dry fertilizer into his planter and "get by" with half rates of Mr Bigshot that might buy fertilizer at half price but has to spread at full rates.   

Mr Bigshot sells corn in 100,000 slugs and gets better bids, but it takes a big investment in bins and machinery and labor to get it delivered when and where promised...is $3.94 worth it over a little guy that is a disciplined marketer and delivers $3.68 corn to the local coop in a 200bu Parker box?   I guess if you`re Mr Bigshot and you hustle you have an advantage, but you really do have to hustle when you have to.