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Honored Advisor

Trade Disruption Insurance?

Would it be a good idea to insert in the farm bill a price protection insurance to buffer a potential drop in grain prices due to a Pull out of NAFTA?   Like if with NAFTA Dec 18 corn is $3.85 and if it`s determined we pull out of the agreement and Z18 drops to $3.60 the farm program would pay out 25 cents a bushel on a farmer`s program acres x proven yield.

 

No I`m not getting wobbly on my opposition to multilateral trade deals and globalism.  I`m just floating an idea for the 2018 farm bill and since agriculture is one of the few beneficiaries of NAFTA, it stands to reason it would be hurt in the retaliation due to it`s exit.   A payment may prevent  a worse farm recession and take worry off the table for those skeptical of leaving the agreement.

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Veteran Advisor

Re: Trade Disruption Insurance?

I know its not quite the same thing, but reading this, my mind went back to the days of "Freedom to Farm", which was to gradually wean agriculture off dependance on government.   correct me if I'm wrong, but I think it was when ag trade did not meet expectations, it was deemed necessary to give "double AMTA payments".  IMO, that was the undoing of freedom to farm, and the undoing of being independant of federal government.

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Honored Advisor

Re: Trade Disruption Insurance?

I know BA, it will make my mother feel better if I change the name of the punishment I got at school to "attitude enhancement" but my butt still hurts.

 

Call it what you wish but it is still a plea to the taxpayer to subsidize us just in case the price goes down....

 

But blaming a NaFtA correction for our lack of being able to compete.  is really mixing oranges and pecans with potting soil.

 

Nafta was not an agriculture agreement.  Seperate and different commodity trade agreements were made with each country after the fact.

And at this point, 15 years after the deal ......................... renegotiate and move on .....Call it something like "International busines 102" ............ maybe it is time to stop poking the defeated with a stick.

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Honored Advisor

Re: Trade Disruption Insurance?

What I don't understand is why we allow the domestic market to enjoy the worlds lowest prices for commodities while we try to produce in a very expensive market.  Perhaps it is time for a domestic tariff instead of a commodity support program.   We really need to trim the budgets here at home and food costs should not be lower than the cell phone and tv cable bills.

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Veteran Advisor

Re: Trade Disruption Insurance?

But ...But... Sw do your want to force people to choose between food and their cell phone? Why that is terribly inhumane. It might even be unconstitutional! You know... cruel and unusual punishment
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Veteran Advisor

Re: Trade Disruption Insurance?

Dish  $105

VeriZon  $110

Land Line $50

Groceries  - $225-$250

Simple Actuarial Analysis  ''NEEDED''  ASAP   

  

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Honored Advisor

Re: Trade Disruption Insurance?

Compared to the research value of a decent cell phone in the hands of one who can operate it.....

 

the three you mention are nearly worthless.

 

When 40+ inch tV's are in the $250 range to buy........... paying 105 or more per month for content is nuts.  Especially when the desireable content can be whittled down to 6 channels....  A lot of young folks have got this figured out....... 

 

Trying to live in both the new and the old world is financially crippling.  

 

I am afraid to say ........ but  "We need tougher choices" 

 

 

 

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Honored Advisor

Re: Trade Disruption Insurance?

Hey SW, IMHO if we get out of NAFTA commodities will have little (or less than expected) price hit.  If corn is cheaper from the US, then that is where it`ll ultimately sourced "the earth is flat"...however I could be wrong and it would drop 50 cents from these already low prices.  Doing the right thing could hurt the already reeling ag sector, that`s okay with me (because right is right) but another farm crisis wouldn`t be good for my main man in the oval office.

 

Look at what happened to Jimmy Carter, okay first I need to previsit it, many farmers I know, like and respect blame the Carter Soviet grain embargo for the farm crisis in the 80`s...and maybe that was responsible.  Now as much as I dislike Jimmy Carter, he did do the right thing by not selling grain to our communist enemy.  But "doing the right thing" had consquences, farmers had hard times and many that were lifelong Democrats became Republican over that (good for us in that case).  

 

 

Like I say, I can live with letting the chips fall where they may so long as the right thing was done, but I`m afraid many of my farming brothers won`t see it that way and President Trump could take the blame.   It`s all about politics and selfishness these days, more so that even back than it was in in 1979.  That said, to get ahead of the 8-ball, it wouldn`t hurt my feelings if the government had a safety net to soften the effects of getting out of a overall bad trade agreement.  If Trump isn`t in the white house, he can`t continue doing the good things that he`s doing and some Democrat will fill the vacuum.

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Veteran Advisor

Re: Trade Disruption Insurance?

The  falling  $$$$  is  good  - RIGHT ? ?-  although a few folks were clapping not long ago about the strength of it - go figure --- 

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Honored Advisor

Re: Trade Disruption Insurance?

K-289, the Dollar is basically measured against the Yen, Pound, Euro and Franc ...dirtiest or cleanest shirt in the wash hamper, yet the candy bars get smaller and new pickups cost more every year.  

 

By rights way the Dollar should be strong, we just want it cheap out of desperation to peddle our literal bin busting crops.

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