Posted by JD Seller on June 22, 2018 at 10:57:00 from (173.215.45.26):
In Reply to: Re: About Making Hay posted by coshoo on June 22, 2018 at 10:38:46:
coshoo if Canada reduced it tariff then in a very short time farmers in both countries would be getting paid low prices for milk.
The one thing that I can tell you US farmers do every single time on a commodity, They will produce an excess until that commodity is worthless.
This happens for several reasons: 1) Corporate America does not want high priced commodities at the farm gate. They can not jack them up so high if they have to pay a good price for them.
2) Personal GREED!!! Every farmer think they can produce all they want and still get a high price for it. Supply and demand does not even enter the average farmers mind at the national level.
3) The average US farmer is a darn poor marketer of his crop/commodity. With smaller milk producers among the worse of them. There are cash contracts that can be bought on milk just like grain. You can buy and sell options on milk too. I do not know of a single dairy farmer in my area that uses any of these marketing tools. Just send it to the creamery and take want they pay. I do know of some LARGE dairies that use them. The one is a distant cousin of mine. He has floor under his milk for the next three years and contracts on his major feed ingredients to match. He and his three brothers are milking right at 1500 cows.
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