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Contributor

meat mandate

 

 

Obama announced an initiative this morning to purchase $170 million in pork, chicken, etc.

 

2 points:

 

1)  This obviously demonstrates the administrations reluctance to modifiy the mandate but trying to "help" livestock via other avenues

 

2)  This also does not help ration demand from the feeding side of the equation in fact quite the opposite (but neither does a 60 cent selloff from the highs...lol)

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Veteran Advisor

Re: meat mandate

Some rambling thoughts on livestock.

Remember, most of us 'grain farmers' used to be livestock farmers, both hogs and cattle for many.   I don't remember anyone running to the government asking for money for me when I got out of livestock and made adjustments to my farming business, and that is the way it should be.

 

I would like to see some of the tax returns of these guys that are whining.  Maybe I have it wrong, but  several of the land sales around here have been bought by the livestock guys...their pockets are much bigger than mine--and I say good for them. 

 

Cheap food has not worked out so well, it has greatly added to the healthcare cost in the US. 

 

Ethanol will survive, oil is not going to get cheaper.  

 

There is still corn that will be delivered for 5.00 in the coming months.  Funny how that never makes the headlines. 

 

There is a lot of poor corn in the US.  But, it is humorous to watch those 'pump' their positions with better than expected.  IA is still at 141, that is still a very respectable yield for the year we have been thru.  To get there, there has to be some pretty good corn.

 

And the not to be believed part, I read that they are just killing pigs, because there is no money in them.  Again, What would happen if the grain farmers started disking corn under---it would be considered a national crime.  So the grain farmer needs to feed the world, but not the hog farmer?

 

 

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Contributor

Re: meat mandate

Wouldn't you expect most of the livestock production has hedged feed?  Wouldn't you expect that most ethanol plants have hedged corn and also taken positions on ethanol and unleaded?  If they are hedged on all or most demand will remain the same until they run out of hedged corn

 

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Honored Advisor

Re: meat mandate

jec22,  That is some excellent rambling.

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Veteran Advisor

Re: meat mandate

if we're talking reality, i thought IA closer to 117.

 

In ya'lls experience, how do you characterize very poor category of corn? i always thought it was pretty much meant no yield, but i must be deluded on this. thx

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Senior Contributor

Re: meat mandate

How does ethanol work against sub 3 natural gas?  This is where the next wave comes from.  Crude oil will soon be a thing of the past.  I read everyday where another chain is adding natural gas to their capabilities for fueling.  Natural gas is already making up more of our electricity needs than coal.  It's just a matter of time before it makes up more of our passenger fuel than gasoline.  How again does ethanol fit with natural gas?  

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Veteran Contributor

Re: meat mandate

"Crude oil will soon be a thing of the past"

 

Is that why they are burning the NG off on some wells to get to the crude?  Crude isn't going anywhere fast.

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Veteran Advisor

Re: meat mandate

Gored, I think N. Gas is supposed to burn 'cleaner' than gasoline, but does anyone know if it is 'oxygenated' enough, to meet that mandate?

Also, there are a lot of older viechles on the road, that burn gasoline, and gas will be in use for a long time.  One thing that I think the people who say 'we have a surplus of Natural Gas, and it is cheap' don't seem to realize, is that yes, there is a surplus, and it is cheap RIGHT NOW, but if you convert everything over to N. Gas, it will be less plentiful, and more expensive.

My grandpa once told me, when he was just a boy, and everyone wanted Kerosene, lamp fuel, etc, that the refineries used to dump gasoline on a lake, and light it on fire, just to get rid of it.  The gasoline engine was welcomed, as a way to be able to 'sell' some of that surplus gas, instead of having to find a way to get rid of it.

 

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Veteran Advisor

Re: meat mandate

YO Dude! THe grain farmer is disking corn under that is why the hog guys are killling pigs!

 

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