Vol737
Self sufficient non victim
- Joined
- Feb 2, 2011
- Messages
- 18,183
- Likes
- 29,467
That's not reality. Every farmer I've known didn't make impulsive decisions. All successful farmers try to plan several years down the road.Going into debt, outstripping cash flow absolutely is a recipe for disaster.
Record high prices for xyz crop this year.
Farmer - Lets go buy/lease more land to plant more xyz which means buying seed, fertilizer and other supplies. Also will need more equipment to handle the increase in crops. So borrow the money for the seed/supplies, borrow the money for the equipment thinking next couple of years we'll be raking it in and pay it all off.
Rest of the farmers growing the same xyz crop do the same for the same reasons and guess what, the market is flooded and prices fall.
But we're being really mean to brown and black people. Sorta cancels out, doesn't it?Economic reports are not good right now. Trump needs to get the economic situation turn around. Costs are increasing and the tariffs are creating a lot of business uncertainty.
I think tariffs could work if targeted at right nations (low-labor cost nations), give businesses cushions to adjust, and stick with the tariff for extended periods. Using tariffs as negotiation tool is causing economic chaos.
This could also go into the Trump Celebration thread as well.
Never had anything like that in Tennessee. Don't see how that can be legal.There are collectives/associations mostly identified as co-ops. On the dairy side DFA is probably the most successful but there isn't a way to effectively control their members. They try but if farmer Bob wants to expand his herd there's no real way to stop him. In VA dairy farmers used to buy "base" from the state, it was like a quota system. You buy X amount of base which allows you to sell that much milk at the highest price, anything over that and you got a reduced price per hundred weight. So when prices are high it was still profitable to over produce because there was no penalty but if you didn't meet your base you could lose it so the program sorta worked to limit supply. I think most states had the same program in some form or fashion. These state run "base' systems were scrapped in the late 90s into early 2000s and replaced by Federal Milk Marketing Orders Federal Milk Marketing Orders | Agricultural Marketing Service which in my opinion has been terrible.
DFA handles production with it's own "base" type system for it's members under FMMO but still doesn't prevent overproduction. It's actually illegal for the co-op to incentivize it's members to lower production to keep prices level. I'm pretty sure there are similar co-ops and programs for dirt (crop) farmers and their products.