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southern MN | Got close, in the 1980s, around here on the zero cost productive land.... I don't know anyone who penciled out $1.80 corn back then, I couldn't. Most who stuck around had some livestock and were conservative spenders. The rest went bust and started over. I guess that would actually be below zero?
I know this is a touchy subject, but if the govt gives subsidies to grain farmers to produce excess grain at lower price....
Does it not stand to reason that feed costs will be lower to those buying grain to make their feed?
And so while the subsidies were targeted to grain farmers directly, there was some gains made by livestock producers as well from these subsidies?
Then with steady grain prices, and bigger supplies of grain (the reserve, as one example) livestock farmers had less risk of roller coaster feed prices, and could plan and build a lot easier?
The area I live in most folk had some grain and some livestock, even through the 1980s, so a livestock guy was also a grain guy. But if you were strictly one or the other, it just seems quite plain and simple, the cheap and stablizibg effects of those past grain supports fed directly into the livestock sections as well.
With the current direction of insurance and prevent planting of newer govt programs, the follow through support to livestock farmers is not nearly as strong, and we see the bigger roller coaster feed prices.
Livestock will need to adjust to the new normal, or go begging to congress for their own supports. But be careful you get what you ask for. ;)
There is a long history of farming, grain programs, milk programs, oilseed programs, and so forth. I hear western ranchers get free land from the BLM to graze. ***** maybe we should all figure out what programs, and what time frame, we all are talking about.
Paul | |
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Mentioned to some city folk friends....
