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Senior Advisor

Re: no farm bill......

Ok so let me get this straight.......crop insurance has been around for years and just recently is to blame for high cost of food......

Not supply and demand.....ok got it...

But

Wait...what

Now what one minute.....

I thought ethanol was to blame for high food cost, and high land prices?????

So now wait, its both, one, none????

So is ethanol ok now???

So we can raise the blend to 20, right, I mean we will have cheap corn coming out our ears....

You forgot to tell me how many bales of hay your family eats.......they do eat hay right?????

O.....and anyone have the split of the funding of other programs like food programs versus actual dollars to production.......

Hope your kids have a big enough lunch bucket to haul that hay to school......
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Veteran Contributor

Re: no farm bill......

Yes crop insurance and ethanol are both to blame for the high cost of land which as the number one expense of food increase the price of food.    Ethanol creates artificial demand and Federal crop removes risk from the producer. 

 

Don't eat hay which really has nothing to do with this arguement.    You can't accept the fact that you are a welfare queen or what.

 

Typed a little slower this time. 

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Frequent Contributor

Re: no farm bill......

Crop insurance is driving up the cost of food?  If it is I would place it far down the list, behind the impacts of rising energy costs, equipment costs, fertilizer, other input costs, regulation and middlemen.  I can't speak for corn or soybeans, but in the Klamath Basin with wheat, barley and hay at these prices, profitability is still marginal.

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Senior Advisor

Re: no farm bill......

Ok let me get this straight......

Ethanol blenders credit is gone.....and most agree the mandate doesn't matter when oil is above 70 because the demand is there........yet its all artificial......ok got it.....

And removing Fed Crop takes risk protection away and that's a good thing.....ok got it.....

But wait, what.....

Wait a minute.....

Isn't it universially accepted fact that the more risk assumed.....the bigger the reward......or in this case the price of grain.......so if risk is now in play wouldn't the reward have to match this risk......now, in the world of risk what's the most risky play out there......WEATHER.....now what's the biggest factor in production that no one controls.......hmmm....WEATHER........and uncontrolabe risk that would command a reward to match..........

But wait

What

Hold on here

You said supply and demand doesn't matter in your first post.......its all about acres......now demand matters?????

Dude you are obviously some stiff suit that has one agenda.......dirt cheap entitlement to food.......be a shame if you went without any........

Quit living in the stone age....
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Senior Contributor

Re: no farm bill......

It would be long term healthy for everybody.   The market would shift itself out.  The only guys who would be losing are the ones that don't keep their house in order.   To me the farm program is like bailouts.   Unnecessary.  

 

It has already been established on this site from what people have told me that farmland is the best investment because cash rents are backed by crop insurance which is back by the federal gov.   I just took what everybody told me and got that answer.    Do your own research if you don't like it. 

 

FOOD COST ARE NOT INCREASED DUE TO CROP INSURANCE.   The price of corn is very little to do with the cost of food in the grocery story.  Once again do your own research you have the WHOLE INTERNET AT YOUR FIGURE TIPS.   

 

 

I guess if the American consumer is willing to buy out billions to help insure a food supply.  I guess ask them if they want a farm bill.   The steel workers,  auto workers and investment bank's don't' have bills,,,,,,,,,,or wait do they?????    

 

 

I forgot BIg oil has subsidies as well    

 

 

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Veteran Contributor

Re: no farm bill......

MT where did I say supply and demand don't matter. I just said the acres will get planted. Supply of land is basically fixed and will go to its highest and best use. I've always planted every acre regardless of price.

With subsidized federal crop insurance I size my farm differently than without it. I try running more acres with less equipment cause I have insurance as a fall back. Many farmers could pencil in a profit based on crop insurance. These situations put upward pressure on land. And in about 3 years we will be begging congress for more money cause we are going broke.

Federal crop mostly helps the BTO's since neither them nor their bankers can handle the risk. I can as I own most of my land.

FYI a mandate is a subsidy
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Senior Advisor

Re: no farm bill......

So the mandate to limit soda size in NY is a subsidy.....?????

And you just proved my point........marginal acres don't work with low prices........marginal rented acres really don't work........so take a increasing demand against a decrease in production equals what.....HIGHER PRICES.......NOT LOWER.....supply and demand always wins........when the "I" states grew all the corn and soya we needed price didn't matter cause we always buried ourselves in grain with production reserves........when it takes everything price matters..........its a fact, when all the low hanging fruit is picked the ROI goes south with each incremental addition.......in this case marginal ground and no risk managment........the ROI has to be high enough to work and account for risk........thus HIGHER PRICES.....not LOWER.....
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Senior Advisor

It used to be ASCS...

The agricultural stabilization and conservation service.

 

What is the  purpose now? Are they offering subsidized crop insurance as a risk sharing option for farmers or is it consumer based incentive to promote excess planting of marginal acres. Would those higher risk acres be planted without insurance or not?

 

I suspect it is offered to satisfy both concerns because end users and commercials sure want the volume. They want ample supply or excess. As soon as supply tightens they want to reduce demand by ethanol producers so they have access to cheaper corn. Never mind all theyears we had price depressing excesses and ethanol started using those excesses. So we are supposed to maintain excess supply for end users whether they buy it or not

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Honored Advisor

Re: no farm bill......

Dismal,  So......you want the American farmer to go back and relive the 80s & 90s all over again?      Thank you....ah.....no.   Marginal acres will not get planted to much that is productive   (maybe there's an arguement for switchgrass yet) without crop insurance.  That will lower production across the board for all major farm commodities and food prices will skyrocket.  This nation is all about cheap food and I don't see that changing for a long, long time.

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Veteran Contributor

Re: no farm bill......

I am happy just the way things are.   The governmental policies that are pushing up the price of land are lining my pockets big time.  I just am not deluded that it is completely my own doing.   I have taken advantage of the policies and bought land at the right time, however, if you don't realize that a land bubble is coming you will end up in the poorhouse again.  

 

But to state that federal crop insurance and ethanol mandates are not responsible for your equity and the resulting high cost of food is borderline delusional.

 

I am generally apolitical.  I just play the hand I am dealt, however, at least I understand the economics driving the bus.

 

Some of my marginal ground in it's first year out of CRP did 45 bushel soybeans.  Not quite switchgrass.

 

Oh and by the way CRP is a subsidy also as it takes competing ground out of production!!

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