Visit from the President

[cowboydoc]

President Bush was here yesterday to visit the Deere headquarters and production facilities. He made a good speech on improving the farm economy and world markets. We'll see if it gets done.

 

[radman]

"We'll see if it gets done." That is the big question. The current program is a disaster. Farmers currently plant every square inch of available land not in a conservation program. They have no choice. Since commodity prices are so dismal, the gov. gives billions of dollars to make up the difference. So far the farmer is making it because of the gov. Take away the $ and most farmers would be bankrupt in 1-2 years and farm land prices will plummet. The only way currently to get out of this situation is for our country or a major foreign country to experience poor weather (flood, drought etc), economic collapse etc. which would reduce overall production. Farm commodities are a very inelastic product. A 10% increase or decrease in production results in massive price swings. Crop prices in 1995 were at record highs (same time the freedom to farm bill was passed) and for the past 3 years at record lows).
The country of Argentine has millions of farm acres supported by the gov which is near financial ruin. If that economy collapses prices here will increase but at what cost to that country.

 

[cowboydoc]

I don't even think it would take 1-2 years radman without govt. money. It would only take one year. Most of the guys I know are holding on solely because of the govt. subsidies. Even the big corp. farmers only make it because of the govt. Yea it's a very sad state of affairs. What people don't realize is that corn prices today are less than they were almost a hundred years ago. You can't make it in farming period.

Just as an aside I'm not sure where the record highs in 1995 come from. I'd like to see that info. The record prices for corn and soybeans was in the 50's when corn was over $10 a bushel. In 1995 we only saw upper $2 and $3 corn.

 

[PitbullMidwest]

It's very discouraging that just hours after the President left town, Case-New Holland announced that they were closing their facility in Moline by 2004 laying off over 900 workers because of their "inability" to complete in the global market.

We have to start putting OUR national interests ahead of other nations. Where do you suppose CaseIHFiatNewHolland will build their product after the EU gets their footing?

Congress has to limit foreign ownership of American companies, the Global Market is all smoke and mirrors.

 

[pdxman]

President was here in Portland the other Saturday to talk about improving the economy in the Northwest and to help the farmers in the Klamath basin who were fighting over the water kept for the endangered species. Also discouraging to here afterwards that Oregon has the highest unemployment rate in the nation. Every day the newspaper has another article on which company is laying off and see that the help wanted sections are getting smaller.

 

[cowboydoc]

Ok made a mistake in my posting. I looked up the numbers and 1996 had the highest corn prices ever. The chart that I looked at actually was for adjusted dollars to todays income. What they were actually showing was what the price of corn would be worth today adjusting for the value of the dollar. So I stand corrected. Sorry I questioned your stats.

 

[RAllen]

A question for all of you with ties to the land, commercial that is.

The system, as it is today, seems to benefit only the government. Farmers are no longer the independent men and women of the land they once were. They must dance to the piper if they want to continue to get those necessary subsidies. Another group of our society who now desire larger government. Do not get me wrong. I would take them in a second if it meant I could stay on my land and feed my family.

How can this be undone? Can it? Is it the danger I believe? What role do the giant ag companies play in this ie. Archer Daniels?

Rick

 

[cowboydoc]

Rick,
You are wrong in your assumption that farmers want bigger govt. The mess we are in is completely because of govt. interference. You think for one minute that the govt. wants to let go of those reins? If they did they would have to let go half of the ag force. Most of what they do is providing these dang programs. You can rest assured that I do not know of one farmer that really does this for a living that wants the programs and that includes the corporate farmer.

Secondly the big corp. that buy the product, the commodity guys, are definitely to blame. It used to be you had about ten guys around here to sell to. When the prices went up then they formed two around here and other places. Now when you go to sell you sell to a or b. When they come out to give you a price and you tell them you can't even plant for that price they LITERALLY tell you so what that's the price take it or leave it. The other guy does the same thing. NO competition for product whatsoever and no alternate markets at all either.

The answers are very simple you go back to square one and leave it alone, let the chips fall where they may. The problem is you aren't going to get the govt. out of it and they have created the market for good now by allowing collusion and a virtual monopoly on the buying of farm product. Those same companies pay for the guys to get elected. It would take literally monumental change and I don't see that happening.

 

[Knight9]

Richard, I agree heartily with your assessment.

Seems to me that in most of the "civilized world" Capitalism seems to work pretty well up to a point. At that point ambition tempered with common decency and consideration for fellow humanity goes out the window and is frequently replaced with selfish greed. The end result is that people going after the almighty $$$ trample over each other, put each other out of business, drive up prices, lower the quality of the product, harm the environment etc.

I love capitalism. I also love people. When "capitalism" becomes a "get the most for the least at the expense of anyone but myself" people have stepped beyond the purity of economic capitalism.....or at least beyond common decency.

It is unfortunate that farmers in both your country and mine have been dealt the same blow by the greed of many. Farming is a very noble cause and if a guy could make a decent living at it....I would certainly be a farmer in a heartbeat. The sad thing is that like all food chains that start with plants, the farmer who grows the plants is also at the bottom of the "economic chain".

Of course ( and this is just my personal opinion ) any society that sanctions paying a baseball player $90 million for five years FOR PLAYING A GAME and forces their farmers to wait for government assistance to be able to live, has some serious economic issues.

Kevin

 

[cowboydoc]

Of course ( and this is just my personal opinion ) any society that sanctions paying a baseball player $90 million for five years FOR PLAYING A GAME and forces their farmers to wait for government assistance to be able to live, has some serious economic issues.


I completely agree with that statement. It is absolutely insane what prof. players make. There is literally no rhyhme or reason for that kind of money to play a game. Once again it's the little man that pays for it. I refuse to ever go to prof. games just for that matter. I will not support it at all.