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Boone Co. Iowa | To the phrase cheap and abundant, I would add that any program like set-aside, CRP, etc. banks grain production by idling good producing land. When there is a drought, the govt. usually releases that land to be used by the local farmers. So, you get a bank/reserve for any drought/emergencies. Helps keep prices from fluctuating so much with the market, and lessens risk/reward factors. Makes farming income more "regular." Governments have job of keeping people safe/protected, and about #2 on the list is keeping them well-fed.
Kind of evens out the problems of a local drought. Suppose you get a two year drought, go broke, guy from next county/state comes in and starts buying all your land cause he sold his wheat for $18/bushel.
With a CRP or set-aside bank, maybe that farmer can survive by having some extra acres to graze or bale. And, maybe that reserve keeps wheat from going to $18, maybe it only goes to $13. Govt. has an interest in keeping businesses solvent, and keeping food prices lower. | |
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set aside
