Posted by paul on March 19, 2018 at 10:37:30 from (66.60.223.229):
In Reply to: Farm Problem posted by VADAVE on March 19, 2018 at 10:08:57:
Every govt in the world (except maybe 2) wants 'happy people' to support that govt.
One of the basic things to keep people happy and docile is to keep their bellies full.
Nearly every country in the world wants a growing economy. A simple way to do that is to make food cheaper, so each citizen has more money to spend on other stuff.
As such, nearly every govt in the world is going to subsidize and create an over abondance of food, and then try to make it as cheap as possible to the citizens.
We will not ever overcome that trend.
Ever.
We need to work with it.
The world has the capacity to overproduce food quite easily. But it takes about 24 months to do so.
$7 corn a few years ago told the entire globe to grow more food.......
And so here we are.
Swamped in corn, soybeans, wheat, meat, milk.
We are successful!
Really, the problem isn't that grain is too cheap.
Our inputs are too expensive. Iron costs too much - some of that is EPA related, but still, the iron and labor to make machinery costs too much.
Seed costs too much.
Fertilizer is too high priced.
Fuel, another somewhat EPA deal, costs too much.
USA produces more grain than it can use. So the price of grain depends upon foreign buyers. The exchange rate, and their wealth. We can't really change that.
Farmers tried, we were told for decades find our own use for grain, so we created ethanol, and now there is a hate fest by the citizens, tell us they support big oil more than farmers. Down with farmers, we love Exon!
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