#077 No Agenda for Thursday March 5th 2009
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[...] Source: Adam Curry, March 6, 2009 Source: Adam Curry, March 6, 2009 [...]
Adam,
Thanks for your concern about farmers and their ability to plant a crop this year. My husband and I are Midwestern corn farmers and have witnessed a few neighbors having difficulty obtaining financing for crop inputs this year. In fact, we have some cropland that we rent to a fairly large farmer whose rent check for this year just bounced. Last year, as commodity prices rose to record levels, so did our fertilizer, chemical, seed, fuel, land rent and other input costs. Grain prices have dropped dramatically, but most input costs have not (rent is still doubled). Since costs were completely out of control last fall, many farmers prepaid inputs in order to control costs and sold grain on futures contracts to local ethanol plants to cover their butts. If they sold to Verasun, the bankruptcy court has ordered the farmers to deliver the grain to the plants, but the $4-6/bushel they were promised for their grain will not be honored.
Government subsidies have been much slimmer for small farmers the last few years, which is fine with us. We’d all rather have a decent price for our crops. Here is a good article about the farm bill: http://learfieldcreative.typepad.com/brownfield/2008/06/farm-bill-cheat.html
The megafarms seem to know how to work the system and get the huge subsidies. Obama wants to reduce the maximum gross farm revenue for direct farm payments. A net income ceiling would be more sensible. Larger farmers that can afford to postpone selling their crop in order to maximize government payments will do so.
Have no fear about food shortages, though. The big farms will snap up any available cropland immediately.
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I am also a vegetarian and my body has never been in a very good shape. Being a vegan can really make you much heathier.;`’