Posted by oldtanker on November 14, 2018 at 21:56:32 from (66.228.255.59):
In Reply to: Farmer retirements posted by sourgum on November 14, 2018 at 07:46:24:
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Big difference between a farmer and a store owner. The store owner says "this is the price" while the farmer takes whatever someone is willing to pay him based on demand.
Just as businesses have gone under because they read the markets wrong and over produced the same thing happens to farmers. Raise too much corn, or make too much milk and prices drop. Just they way it's always been. Take a bad year, poor yields and prices go up. Again, just the way it's always been.
Where the problem lies is that too many farmers see the prices go up and they increase production thinking that they are the only one with that idea.......so all 3.5 million of em increase production and lady luck makes this a bumper crop year. And it's a never ending cycle. And no, you don't have to actively farm to watch the markets, crop reports and watch the disaster unfold. It happens again and again and again. I've been actively watching the markets sense 1971. Once the government price supports went away it's one nightmare leading into another one.
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