|
WC MN | Everyone seems to be somewhat in agreement that what we have is unsustainable. Cutting subsidies is a big talking point. I can agree with that. Cutting crop insurance, sure ok on some level over time. Land prices correcting, yeah that doesn't do most people much good as it will mean even more red ink as well as dwindling balance sheets. If we take land out of production we encourage growth in South America and elsewhere. So what is the way forward? Currently we are just operating in the system that is set forth. You want that subsidy, then you have to take crop insurance. You want that operating loan, you need crop insurance. Cut that all out and let everyone run naked? Maybe try and do that over a 5 to 10 year period otherwise there is blood everywhere. Who will allow that? The Ag lending industry who is essentially backed by crop insurance to an extent? The subsidies help make sure that loans are repaid and not so much that inputs will be bought, but so that inputs can remain at elevated prices. Big ag companies are beholden to stock holders and there must be growth and results. Will there be a reset and a new combine drops in price by half? Did new equipment ever get cheaper during the 80s? I'm sure there were instances that it could be bought cheaper on liquidation sales, but did Deere continually reduce the price of a 4450 through the decade? If land drops 30 to 50 percent who will be the ones buying? In my area, it will probably be the same people that have been buying all along. The ones that have always been "keeping their powder dry" will continue to do so because land is getting cheaper. If land drops 30 to 50 percent a whole lot of equity will be gone and so will a lot of that "powder".
I guess my point is what do we do? Its easy for the older guys with paid for land to have a certain view. Its easy for the young guy who just wants a chance to have a certain view. The bulk of us are in between that. All the low hanging fruit has been picked, and we are in late stages of capitalism. Corporations have to find new ways to make money off of us. Currently lobbying the government to subsidize is is what is working to prop it up.
What is a sustainable way to get us off the tit? | |
|
What is the way forward?
