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Honored Advisor

Raising the CCC`s Authority to $68 Billion

I guess to keep up with "inflation" the Commodity Credit Corporation should be raised to $68B from the current $30B.  Rise in farm loam defaults, agriculture will find a way to use it. 

https://www.fb.org/market-intel/reviewing-the-commodity-credit-corporations-borrowing-authority  

 

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Senior Contributor

Re: Raising the CCC`s Authority to $68 Billion

theres always more money! Just print more!  After all whats a mere 30 billion compared to the 3-4 trillion spent a few months ago for the pandemic fallout. Keep it coming! lol

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Honored Advisor

Re: Raising the CCC`s Authority to $68 Billion

The national debt became unpayable $15 Trillion ago, now with the Covid excuse, printing without consequence a certain political party is licking their chops on getting in on the new found alchemy.  

Last year we produced 13 billion bu corn and it`s worth either side of $3 cash so about  $40 Billion  (reminds me of taking 250lb hogs to Wilsons back in the day 40¢ so $100 per hog, if you let em get 300lbs you got 33¢ so $100...sow price over 300lb. ..they just weren`t going to pay you over $100 for a hog)  but I digress. This yr 15 billion bu crop coming, so $2.66/bushel, our corn crop just isn`t going to be worth over $40 Billion.

But you figure 4.3 billion bushel soybeans worth $40 Billion so that with the corn, $80 Billion would buy every bushel of those 2 crops.  I realize there`s also wheat, cotton, rice and beets.  But the CCC line of credit has been $30 Billion flat since 1987.   Our yields have about doubled in 35 yrs (fringe acres perhaps lower yields but more acres) .

I`m not one to seal corn, but last I did it was about $1.70, I think now it`s $2.20.  If we produce over 15 Billion, it`ll be in LDP territory  Uff-Dah.

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Veteran Advisor

Re: Raising the CCC`s Authority to $68 Billion

No sense in wasting what you don't have. 

 

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Senior Contributor

Re: Raising the CCC`s Authority to $68 Billion

commodity prices dropping into LDP territory  is very bad! LDP’s kick in when prices are below the CCC marketing loan rate and they havent been raised for quite a while. The other problem is u can either have an LDP or a marketing loan but not both. LDP’s should be triggered when prices are below the reference price used for ARC/PLC not the loan rates. 

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Honored Advisor

Re: Raising the CCC`s Authority to $68 Billion

With everything going on I completely forgot about PLC!   Thank God for PLC, it`ll save our bacon another year....hence CCC needing mo money.

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Advisor

Re: Raising the CCC`s Authority to $68 Billion

Commodity prices going up for inflation would solve most of these issues.  Let’s say 5$ corn 13$ soybeans then most of these programs become obsolete.  However they will never let that happen because the 15 middle men don’t get theirs.  Everyone with there hands in the honey pot get cut out and just the farmers get paid... imagine.

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Honored Advisor

Re: Raising the CCC`s Authority to $68 Billion

I see your point Illinifarmer, the thing is if we put a cap on seed prices, fertilizer and chemical, then farmers would bid away their profit in land rent or buying land.   Famers are good at cutting their own throats...hogs are profitable for a year and then up go new hog barns.

Just my opinion, but if there is a solution I would say supply management, payment limitations and price supports in a  program that`s voluntary so that no one will call me a socialist or worse  Smiley Happy

The small farms are only here as a niche with outside income support, the medium size farms are in the stun chute, the large farms are doin` good, crops laid by and the rest of the summer at the cabin on Rainy Lake catchin` those Walleye like they`re goin` out of style.   Smiley Wink

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Senior Advisor

Re: Raising the CCC`s Authority to $68 Billion

........just put up a second mailbox.

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