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Senior Advisor

Re: TBTF: any buyer's remorse?

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The difference being that you can be as big as you want, as big as your management skills will take you and as big as you are financailly able.  In a capitalist society, the advantage usually gravitates toward money and a socialist farm program does not conflict with that.

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Re: TBTF: any buyer's remorse?

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This Bill moves it well beyond adaptability and entrepenurial skills thatyour Papa was telling you about.  It is a declaration that everything  is "mature" and needs to be made (irony intended) "sustainable".

 

As nox said about the 80s-90s, it will be interesting to see how the financial sector plays along.  I can't believe that it isn't operating under the presumption that everything is very simply  portable or capable of being seamlessly consolidated.

 

The big boys are in the sand box with the Real big boys.

 

Who knows, maybe at some point we'll get to turn on the evening news and see footage form D.C. of  a GPS orchestrated, driverless tractorcade.

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Re: TBTF: any buyer's remorse?

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If they're that good, why to they need the backstop? The answer is because distortions from previous interventions have mispriced the market and policy makers are afraid of too abrupt a correction.

 

I think I'm on 100% solid ground here, the only logic for argument is that because the government has backstopped those who have survived in the competitive world of cropping they are beholden to continue to do so. Or terrible things will happen? Balance sheets are in great shape, if there ever was a time to wind down support this was it.

 

Really, in some ways it is a pretty good bill- it represents a very, very gentle approach to shrinking the bubble that various policies helped inflate.  I just think it should be a little more along the lines of what The Daddy Party thinks should be the approach to welfare mothers- a little tough love was in order, not kissing the booboos.

 

 

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Our good friend from Canada

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Canuck 2 who posts over at the Forum just put this up. I don't recall him posting on this forum and thought that it was relevant to this ongoing discussion, so took the liberty of moving it over here:

 

 

 

http://community.agriculture.com/t5/Ag-Forum/Neil-Macdonald-on-Farm-Bill/m-p/453991

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Re: TBTF: any buyer's remorse?

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It is now much more about whether Monsanto and Du Pont can continue to extract $100/acre for seed.

 

The seed/GMO thing probably stands as the foremost example. You have an innovation that has resulted in 0 net benefit for anyone other than creating a vast opportunity for rent extraction. Yields have not accelerated and the continued rise in potential is about the norm- it is pretty well accepted that continued genetic advancement is from plain 'ol plant breeding.

 

Chemical use has not declined as resistances move faster than even the greatest pessimists had predicted. Now we have 5 herbicide cocktails being applied to GMO corn.

 

But "the growers" are locked into a sort of symbiotic/parasitic relationship with the corps. It's bad for business to claim that there's a problem and real economic risk for people holding grains via events like the Starlink debacle. We must all Stand Up For Agriculture. Or else.

 

I have a theory that domestic food animals are basically compliant in their captivity because they are prey species in the natural food chain so they basically have figured out that their short but well tended lives are preferable.

 

 

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Senior Advisor

Re: TBTF: any buyer's remorse?

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@kraft-t wrote:

The difference being that you can be as big as you want, as big as your management skills will take you and as big as you are financailly able.  In a capitalist society, the advantage usually gravitates toward money and a socialist farm program does not conflict with that.


There is nothing capitalistic about the farm bill. The clear winner is the TBTF. The government is distorting the market in favor of the corps all to buy their vote. Us small farmers are just pawns used to funnel the money to where the powers to be want the money to go. Clearly a statist system of manipulation.

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Re: Re:wanna make some moola on this farm bill Noxie?

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Looked at the price charts and the financials and think I'll pass. Could be wrong, hardly the first time.

 

I'm thinking that a saturated market is still saturated. Better for them if tax incentives are extended but don't see 200 horse lawn tractors really making it as the next suburban status must have. On a large scale, anyway.

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Re: Our good friend from Canada

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That was my first reaction when the I first sat down and thought about the implications of the K Street TBTF BTO Relief Act of 2014.

 

Another shiv in the backs of our "friends". Although when you are an indispensible nation, you don't need friends. And when you already know what they're talking about in private, whatertheygonnadoaboutit?

 

In all fairness though, the other major grain exporters were freeriding on our last strange veer of farm policy when we jacked the price for evreybody via the ethanol overshoot and commodity financialization.

 

So I guess we're just collecting on the bill.

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Re: Our good friend from Canada

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Probably the single piece of common economic wisdom that's been drilled into all of us is in regards to the destructive impact of trade wars. Mostly true, too.

 

Just thinking about the what ifs of what if the Business As Usual payola to a some relatively smaller fish results in escalating trade tensions.

 

Do Monsanto and Deere think they're bigger than Apple and Cat?

 

As you say, Bruce, they'll need to trot out some salt of the earth fellers in straw hats and bib overalls.

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Senior Contributor

Re: TBTF: any buyer's remorse?

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Totally agree with you 3020,  socialism at it's best, and why not, when the prices we receive for our products are totally controlled by government intervention throughout the world. Case in point--China's recent rejection of several cargos of corn, resulting in immediately dropping our corn markets here.  We men-of-the-soil do need protection from our gov and others out to manipulate our grain prices to their benefit.

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