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Tractor Talk Discussion Forum

Re: Goodbye Farm Bill

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10-03-2013 06:55:14

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Can somebody explain to me how $7/gallon at the store is a BAD thing for anyone involved in selling the milk?

I still don't understand why farmers INSIST on shooting themselves in the foot. $10/cwt milk is better than $35/cwt is the "farmer logic?" Can't make a profit. Can't do well. Otherwise what excuse would we have to nail ourselves to crosses and moan about how poor and downtrodden we are?

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10-03-2013 15:08:13

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 Re: Goodbye Farm Bill in reply to mkirsch, 10-03-2013 06:55:14  
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That 7 buck milk to the farmer is per hundred weight. That works out to about 12 gallon of milk. At 7 per hundred and last springs grain prices a farmer would loosing money feeding 8 buck a bushel corn to a cow. With the cost of producing feed for the cows in terms of planting and harvesting crops plus the other cost 7 buck a hundred is in long term fatal. The farmer doesn't set the price he gets paid for anything. They tell the farmer how much they will pay.

How to fix this isn't government price supports.
They (the government) allow companies to IMPORT milk. There is a penalty if they import more than allowed but it's cheaper to buy milk from South America and pay the penalty than it is to buy milk here. Companies that make processed cheese and other foods are allowed to import dry milk and to use that. That's why the big food companies are fighting the Country Of Origin Labeling laws. Some consumers and most farmers want these laws regardless of % of imported food product. The food companies don't want it at all. I'm in the camp that says if we produce it imports should only be allowed based on need. If we are producing enough then we don't allow imports. It's only been sense they have allowed milk to be imported that milk prices have been so bad.


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10-03-2013 16:23:55

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 Re: Goodbye Farm Bill in reply to oldtanker, 10-03-2013 15:08:13  
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Rick, the $7.00 a gallon milk was reported to be the price consumers would be paying at the store when the scare tactics were in play. If dairy farmers actually got $7.00 a gallon they'd be jumping for joy. Currently in my area farmers are getting about $19.00/cwt. $7.00/cwt would be about 58 cents a gallon to the farmer. At $19.00 it's $1.58 a gallon. But trucking and a lot of other stuff come out before the farmer gets his check and then he has to pay for the production of the milk.

I think we're arguing for the same point but coming at it from different directions.

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10-04-2013 07:22:23

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 Re: Goodbye Farm Bill in reply to Bret4207, 10-03-2013 16:23:55  
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Bret, I was responding the post that stated that 7 dollar milk to a farmer should be good. Pointing out that if a farmer is seeing that 7 buck per gallon but that means milk that is 7 per hundred weight. Not 7 per gallon. Lots of folks out there don't understand just how the farmer is paid. Like the going rate for beef or hogs. Nor do they understand the cost on in-puts to produce any marketable product to sell. It's really funny when talking to someone who doesn't understand that the whole pig or cow isn't prime cuts.



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Indiana Ken

10-03-2013 07:32:17

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 Re: Goodbye Farm Bill in reply to mkirsch, 10-03-2013 06:55:14  
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If people go the the store and continue to buy the same amount of milk at $7.00 per gallon they do at $3.50 (or what ever it is now) perhaps, there is no problem. However, if people see the new price and buy less or decide not to buy then what happens to the over supply? Who will pay the farmer $30/cwt for milk that cannot be sold in stores? Do you require excess dairy farmers stop producing milk, do you assign production limits to each farmer (remember wheat alottments). Or, maybe the goverment can buy the excess milk (remember that)....?

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10-03-2013 09:03:48

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 Re: Goodbye Farm Bill in reply to Indiana Ken, 10-03-2013 07:32:17  
Right now dairies are closing their doors Ken. There are very few places with truly stable or growing dairies. The sad truth is that we can't continue to artificially support industries that operate at a loss. So if we pulled the supports for dairy, for angora goats, for crops that don't grow where people are trying to grow them, for CORN, for other areas of the agricultural industry and let market forces determine winners and losers...we'd have a stronger agricultural base in the end. Yeah, it'd hurt. A lot. But the US has had a cheap food policy since the teens IIRC. It hasn't worked out so great. We're having to rob Peter to pay Paul. The corn I paid $8.00/cwt a few years back is $19.00.cwt now and you won't hear a single corn grower complain about it and the subsidies and price supports the gov't has in place that cause that price. You won't hear ADM or Monsanto or any of the hybrid RR seed companies complaining about the $250.00 plus bags of seed corn they sell either or about the laws they're trying to put in place to keep us from growing our own seed that might contain one of their gene strains, even if it's unintentional. It's all mixed up with gov't and corporate entities washing each others backs and buying votes with taxpayer dollars.
It's all a jumbled mess and very little of it is honest or truthful anymore. It can't go on like this forever, so we take some hurt now or take a lot later. I don't see another way out.

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Indiana Ken

10-03-2013 15:08:42

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 Re: Goodbye Farm Bill in reply to Bret4207, 10-03-2013 09:03:48  

Your reply is confusing to me. If we delete the farm bill and go back to permanment law the price of milk goes is still supported. I would like to see less government involvement in pricing, I think we agree on that but what are you recommending?



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10-03-2013 16:31:12

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 Re: Goodbye Farm Bill in reply to Indiana Ken, 10-03-2013 15:08:42  
This post was edited by Bret4207 at 16:31:43 10/03/13.

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10-03-2013 16:30:53

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 Re: Goodbye Farm Bill in reply to Indiana Ken, 10-03-2013 15:08:42  
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I'm saying the ultimate answer is to get gov't out of the price support and limit business altogether. This isn't 1890 and we aren't having the Gold Standard vs Silver Standard debates, William Jennings Bryant and the Populists are no where to be seen. This is about sustainable paradigms, artificial supports and limits and corporate/gov't collusion. I'm just a dumb hick sheep farmer, but even I can see that we can't continue to rob Peter to pay Paul and then limit what Peter can earn and who he can buy his raw materials from. Well, actually we CAN keep doing that. But it ends up with either 10 or 15% of the population supporting the rest or with a Marxist gov't and economy where no one actually owns anything and the gov't decides who grows what, where, how, when, how much, etc. Neither of those options appeals much to me. Truthfully, I'm very surprised the whole mess hasn't fallen apart already.

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10-03-2013 09:10:09

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 Re: Goodbye Farm Bill in reply to Bret4207, 10-03-2013 09:03:48  
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Back to $8.00 here, how much do you want?

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10-03-2013 16:16:04

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 Re: Goodbye Farm Bill in reply to RGMartin, 10-03-2013 09:10:09  
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Shell corn for $8.00 a hundred pounds? If you have a good supply I'll let my feed dealer know!!!

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