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Inputs and demand.........
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Kooiker
Posted 6/12/2011 23:08 (#1816247 - in reply to #1816172)
Subject: Re: Inputs and demand.........



I'm not sure food would go up in price without the govt meddling in everything.

 

By removing govt meddling I mean NO CRP, NO restrictions on wetlands,NO preventative planting, NO meddling with irrigation to protect a fish, graze public lands to the tilt, No Blenders credit, No RFS, etc.

 

I think govt meddling is what has got us to grain high prices.

 

Without govt meddling I don't think that there would even be an ethanol industry.  I'm not even talking about the BC or RFS either, I'm talking about corn being so cheap for so long that people were looking for anything to get rid of corn.

Take away all the years of price supports so that corn would have been higher priced and the ethanol industry would have had a much harder time getting going if corn production would have more closely matched usage.   Yes we likely wouldn't have been raising as much corn but without govt meddling those acres would have just done something else and been available now to use.   Instead we got the CRP and all the environmentals that think that without CRP everything is going to go extinct.

Even those poor pheasants in SD would still have habitat without CRP if there is really that much demand to go trompsing around a wetland to shoot a wanna be chicken.  If the $ are there for pheasant hunting they should support their own habitat.

 

 

End rant.

 

Edited to add to rant.

The only input that needs to go down to make $3 corn work is LAND and it is the cost that farmers have the most control over. 

Also happens to be the only input cost that is rising at a really fast pace.   So who is really driving the production costs up?



Edited by Kooiker 6/12/2011 23:11
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