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Dairy/Hog Farmer
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By farmers, they are referring to grain producers.

Those of us that are beef/dairy/pork/poultry producers have been dealing with doubling feed prices since late summer2006.

The "redistibution of wealth " started with the ethanol scam,as the federal government benefitted one segment of agriculture at the expense of others.
 

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In memoriam
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I think there's a lot of hype and spin in that article.
Most of the "record drops" are from their ESTIMATES, and not from real prices.
Farmers arent doing great, but I dont think its as bad as they are implying with these estimated figures
 

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By farmers, they are referring to grain producers.

Those of us that are beef/dairy/pork/poultry producers have been dealing with doubling feed prices since late summer2006.

The "redistibution of wealth " started with the ethanol scam,as the federal government benefitted one segment of agriculture at the expense of others.
I know for poultry producers it is getting worse!!!!
 

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I am good without god.
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858 Posts
I don't know about the other parts of farm country, but eastern Kansas grain growers are earning half the price per bushel that they expected just a couple months ago. It puts them all the more over a barrel due to having to buy fuel, fertilizer and pesticides earlier this year at higher costs. It make them have less than they need to cover the loans the needed to take out to cover the cost of inputs.

Just something to ponder even if you are in other areas of agriculture or horticulture.
 

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In Remembrance
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Wonder why the lower price paid to grain producers coupled with the lower gas prices have not been reflected in lower prices at the feed store?
 

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In Remembrance
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I paid over $15/50 pounds for the feed that cost me 7.50 less than two yrs ago. Corn was 8.50/50 and it was under $4.50/50#. Nobody wants to pay for meat and eggs what it costs me to produce them. Something has to give somewhere. Either what I get for my meat and eggs has to increase or the price of feed has to go down.
 

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I am good without god.
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I think there will be quite a few hungry people then if they don't want to pay what the going price is.
 

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Premium Member
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Here last month I just bought some grain.

I paid $200 for a tonne of oats,
I paid $240 for a tonne of barley,
and I paid $260 for a tonne of corn.

Granted I would prefer prices to be lower, but just how high are we saying that prices are?

I mean in real life terms.
Barley early this year was $250/ton. I bought just enough to get me by, now the price is back down to $130/ton. I'll be buying enough to get me by for the next two years.

Bob
 

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zone 5 - riverfrontage
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I got our oats from a local farmer.

Our barley and corn I got from two different mills. One was 2 hours North, the other 90 minutes West of our location.

At each mill they are dealers for feed companies [Blue Seal and Perco], in both cases I was told that they handle local grain at local prices until the local grain runs out. Then they each revert to only selling the company grain.

Grain at $6 a bag and $6.50 a bag, will be replaced with $18 a bag grain once the local grain runs out.

I think the difference is in one scenario your dealing with a farmer or a farmer and a mill. Whereas in the other case your dealing with a corporation.
 

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Wonder why the lower price paid to grain producers coupled with the lower gas prices have not been reflected in lower prices at the feed store?
I don't know, but I suspect companies that bought corn at a 'high price' isn't going to adjust the prices, till that expensive corn is sold.

[I know for a fact that some gas dealers lost 5 figures during the last hurricane... they needed fuel, the day 'fore the 'cane hit, and it was a dollar gallon higher than everyone elses... well, the 'cane wasn't that bad, supplies weren't disrupted, and the owner was stuck with $4/gal gas, when his competition was selling it to customers for fifty cents cheaper........... I doubt if corn dealers are going to take a loss, voluntarily]

I'm waiting with anticipation for the prices to drop like a rock too! Stagflation does have it's good points.
 

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Neighbor grows a few thousand acres of corn and soybeans. He tells me corn is hovering around 180/ tonne (2200 pounds) CDN $. That'd be 155 ish USD. Good thing he contracted some corn at 270 something last winter.
 

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The subsides for corn/soy/wheat/etc are the biggest problem in farming these days. If the current crises forces some of these folks to stop growing corn/soy/whatever then thats a GOOD thing. We need to get away from the oil-based food economy we now have and move back to a solar-based one. If its hard time for oil-based farmers ahead, I say thats GOOD news - maybe some of them will go belly up and we'll ALL be better off!! (at least in the long run. Maybe won't be a lot of fun. But better in the end.)
 

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Subsidies are a hot button issue for me.

Tell me, in what other sector of the economy is money taken from one producer by force and given to his competitor? I grow organic vegetables on a small scale. I am not eligible, nor would I accept, any subsidies. I make a small income off of what I can produce. However my taxes eat up a large portion of that income, in order to then turn around and give them to large corn/soy/wheat producers who then make cheap processed food with their government-bolstered harvests.

Biologically speaking, I am capable of producing just as good of a tomato as the commercial agriculture outfit in California, running on 400 acres, staffed with illegal aliens and funded by government subsidies. If you put the two tomatoes on a shelf, many customers would actually find mine to be the superior product. However my costs are much greater than his, despite the fact that I don't have any of his specialized equipment, his land tax burden, his payroll costs, or his transportation fees. So in the end, how can he sell a tomato cheaper than I can and still make a bloomin' profit? Through the magic of government piracy ... subsidies.

I actually see the crash as a good thing, sort of a great equalizer. When money becomes worthless, the subsidies disappear and we return to local markets for all our needs. A new cottage industry phase will spread across America. It will be tough times for those who can't do without their 42" flat screen televisions and DVD players, but for the rest of us life should go on pretty much unhindered.
 

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What subsidy does a tomato grower in California get? Fruit or veg farm don't get subsidies, do they? At least, I didn't think so. The grower in California makes his money on economy of scale.

Jennifer
 

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Wheat, corn, soybeans, and rice get the vast majority of subsidies, however there are other subsidy percentages being doled out to dairy, peanuts, sugar, and even tobacco. Isn't it amazing that in this day and age we subsidize tobacco? According to the USDA fiscal budget for 2006, 160 million dollars went to "other crops" which is everything from organic vegetables to ginseng.

I use tomatoes for my example because that's what I primarily grow for market. I prefer to grow potatoes, because I believe they are the true staple and more nutritionally complete, but the competition in the potato market is very fierce. People are used to getting a 5 pound bag for a couple of bucks and they aren't sophisticated enough to tell the difference between varieties. In other words, they won't pay a premium price for a superior spud. So while you can't live on tomatoes alone, they can provide more income for the grower, while the humble potato (when consumed with milk it's a complete meal, nutritionally providing everything your body needs) isn't sexy enough to make a living off of.

I have declined to grow wheat or corn for commercial purposes, mostly because I would never be able to compete with the big subsidized outfits, but also because of moral principles. My grandfather worked his ranch and made a good living off of vegetables and beef. He worked by hand and by horse. My father worked that same ranch and converted it all to wheat and corn and plowed by tractor, just as the government advised him to do. The bank took that ranch and there's a subdivision with a hundred homes where I used to hunt and fish as a boy. There's a gas station next to my grandmother's grave.

It took World War II and a decade of working in the heat of the Houston shipyards for my grandfather, a poor sharecropper from Oklahoma, to buy that ranch in Texas. I'm working hard still to build back up a place for my own children, and I tell them every day, "Whatever the government tells you to plant or how to do it, you go out and do the exact opposite. That's your money-making niche." Only the problem is that they take my money away now to support the ones following their bad advice.
 

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Corn farmers in this area sold corn futures at up to $7 per bu. which VeraSun ethonol bought. VeraSun filed Chapter 11 so now farmers are told they have to deliver the grain but bankruptcy judge says VeraSun pays current not contracted price. Going to be a lot of farmers go under on this. People don't understand the ripple effect. Farmers fail, food prices go up. Small business dependent on farmers having $'s to spend fail. Less business mean less competition so prices go up. Businesses close so rural people have to drive further and spend more for supplies. If credit isn't available for farmers to borrow to put in their crops, more ripples will move across the economic lake. Farm equipment dealers ripple ripple farm equipment manufacturers ripple ripple layoffs ripple ripple foreclosures and so it goes. We've already seen the big waves with stock market, big banks bail outs, real estate etc. it all ripples across the economic lake or maybe a better example would be dominoes going down one after the other! Its easy to say we don't care about such and such failing but eventually it all will ripple down to us.
 
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