$90 a month times 850, 000 recipients divided by workers, comes out to about $21 saved per month. Oh yay.
$90 a month times 850, 000 recipients divided by workers, comes out to about $21 saved per month. Oh yay.
In past farm bills there have been price floors put in. Believe they were called Loan Deficiency Payments. Interestingly, prices tended to hover around those LDP levels much like price caps keep prices right at the limit rather than fluctuating like they would in a normal business cycle.
No. All things considered China basically sets the grain markets. Just a few years ago the prices were about half of what they are now. And now they are about equal to the prices when my grandfather was farming. Make sense? I didn't think so.
Are we really subsidizing the tobacco farmers with public money?
In principle I actually agree with you on this if there were not such meddling in the marketplace. But the US govt has decided it has a vested interest in a cheap food supply as hungry people are unhappy people and unhappy people overthrow govts. So in the interest of the "common good", they distribute production information from the USDA to the market traders and give them tremendous leverage over the farmer by exposing their production and using that information to stabilize prices. If the grain markets were a true free market, the end user would not know how much grain there is. They would have to raise the price they were willing to pay until the farmer were willing to sell his grain. But the way it works now is that it is public knowledge what the farmer has in his bins so the end user will wait it out until the farmer has to clear out his bin before the next harvest(kind of simplified analogy there).
Incidentally, shifting to a crop insurance based system makes all of this information much more easily monitored. Through insurance paperwork, they will have an even more accurate accounting of acres planted, past yields, and storage capacity than ever before. In a perfect world, I would love to see the USDA go away but if you think people squawk about grocery bills now, they could not handle the price increase that would occur if their food supply followed the same laws of economics as everything else. So here we are. Stuck subsidizing an industry to keep people happy and the farmer in business. Really though, you should look up what percentage of the USDA budget goes to subsidies and what percentage goes to food stamps. The subsidies are a non factor compared to the rest of the federal budget.
Nothing that a current producer doesn't already know, but an eye opener to those who don't know what wheat prices have done over the last 100 years. Closed at $5.56 today.
http://www.automationinformation.com/Favorites/wheat_prices.htm
The price of grain didn't keep up with the cost of equipment either, lol.
http://www.automationinformation.com/Favorites/wheat_prices.htm
The price of grain didn't keep up with the cost of equipment either, lol.
Guess the market thinks wheat does not need any moisture. IDK about up there but our crop is hurting for moisture right now.
Doesnt matter , cant afford it anyway....back to the soup line...8/
Wheat.............no-till guys are ok, conventional guys need a drink desperately. Ponds going south in a hurry. All the canola looks pretty good.
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