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Veteran Advisor

new farm program

current loan rates

 

what 2.94

corn 1.95

grain sorghum 1.95

beans 5.00

sunflower .1099 per pound

 

sorry folks, if I didn't include you crop.

 

look at these numbers........can you break even using the above numbers at an average crop year ?

 

(oh, by the way, we need to make something, rather than just break even)

 

ok.......the proposal.....a minium of $2.00 added to each above.......

(that still only equals $7 a bu for beans)

 

(will not go that much tho for sunflowers)

 

this would help us make up for the rising inputs costs.......and for a broken commodity marketing system.

 

this would be a big shot in the arm for rural communities.........in the past year in the area, we've lost

an implement dealership, a repair shop, 4 retailers......the dealships have had to lay off the shop help,

yes, there is a problem......and oh, by the way, there are no 2 year old piles around........

it is so bad, that the area coop had to merge/sell out.....as time goes on, more and more details about

the condition of the coop is coming out, now that it no longer exists as itself.

 

oh but I can hear people hollering no, don't do that, inputs will go up......ahhhh, wait a minute, I thought you said

that the pure market is at work.....you tell me it is in the commodity market....that demand equals price......well if

this is true, and you believe it (at least you keep telling me).....we would have no additional acres, so thusly no

additional demand for inputs, therefore, no additional price increase..........

 

the additional funds coming into rural America, would roll over 20 times.....that is a very good economic return.

very few economic segments can such a return be found.

 

if you raise the rates (or floor of the prices)....perhaps farmers could afford to buy the crop insurance themselves, thats

what all you want isn't it ?

 

after all, the world circles iowa, and if they don't need it, nobody else does..

 

and just think if you got $4 for your corn, you could buy all that new green equipment, and drive around in Lincoln pickups with leather

seats...and your $400 yeti beer coolers.

 

 

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6 Replies
Veteran Advisor

Re: new farm program

just so you understand why I want to see this change to the farm program, here is the prices hitting me in the face right now

 

wheat   3.31    nc  3.96

milo      3.08    nc   3.28

corn      2.93    nc   3.28

beans    8.85   nc    8.86

 

tell me, what is the incentive to even plant ?

 

** nc is 2018

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Veteran Advisor

Re: new farm program

Subsidizing crop insurance by raising loan rates is still subsidizing crop insurance.

We all know that any extra income is capitalized into land payments.  Farmers are perfectly happy to break even or even not lose too much while getting bigger and bigger and producing more and more.  Give farmers more money and they will spend it on land, either on their own or because the landlord demands it.

Maybe if we got away from guaranteed minimum income we'd get closer to a pure commodity market.

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Veteran Advisor

Re: new farm program

How are higher land prices or rents bad, if things
Are $2 higher....how will a higher price produce
More ? If the wx does not cooperate it doesn't
Matter how much you paid for seed
And if prices were higher maybe crop ins
Paid at 100%. So how would it be bad ?
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Veteran Advisor

Re: new farm program

Elcheapo.  If I give you 5 dollars and you have to give 4 dollars away, and then I give you 10 dollars and you have to give 9 dollars away, how are you any better off?  You're actually worse off, because your taxes help pay for the extra 5 dollars floating around, and the person who gets it is the landlord.

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Veteran Advisor

Re: new farm program

But I made a $1....better than now !
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Veteran Contributor

Re: new farm program

Why do you expect the farm program to guarantee you a living? There is no government program that guarantees anything for oil producers. I am sure they would love any kind of a minimum price or some type of insurance program. What about the small businessman who runs the independent grocery or retail store?
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