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Problems for the corn farmer coming up?
Topic Started: Dec 19 2013, 02:23 PM (555 Views)
Banandangees
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Corn Plummenting Spurs Talk of '80s U.S. Farmland Bust
December 18, 2013
By: Bloomberg


Quote:
 
As corn prices decline, bankers and agricultural economists are predicting a slowdown in farmland prices that could turn into a bust.
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Sea Dog
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Interesting link,
Thanks.
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Sea Dog
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Perhaps if the crop prices collapse,
the farmers will actually need the millions in
subsidies generously donated to them
by a gullible public.
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Banandangees
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Corn prices, which affects the farmers bottom line, fluctuate from year to year depending on supply and demand. But, since the US is by far the leading producer of corn and is the main production crop grown in the U.S., particularly in "valuation" (as the second chart shows), a significant drop, several years in a row could definitely affect the well being of the farmer.... particularly, the small farmer.

"The United States is, by far, the largest producer of corn in the world, producing 32 percent of the world's corn crop in the early 2010s. Corn is grown on over 400,000 U.S. farms. The U.S. exports about 20 percent of the U.S. farmer's corn production. Corn grown for grain accounts for almost one quarter of the harvested crop acres in this country."

It's probably a more potentially disastrous possibility than meets the eye, especially since by the year 2050 it is estimated that global production to meet demand, agricultural production will have to increase 60%, by weight, than in 2005 to feed the world.
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Mountainrivers
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Some of these farmers should change to a different crop. We have millions of acres of fertile land, yet we import many of our fruits and vegetables.
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tomdrobin
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Too much emphasis on corn anyway. Using it for motor fuel was a mistake. And, the high fructose corn syrup a disaster.
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Banandangees
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Then there are some really good things that come from corn. It's fun and easy to grow. I suppose so many farmers grow corn, rather than other vegetables and types of fruit, because it's so much less labor intensive, comparatively. Don't need as many low wage employees. But to make it so less labor intensive, they have to buy this expensive equipment; in the case of the small farmer, rent it or contract it out to someone who does it specifically for a living (contractor). But, for the really big farms in MR's territory, farmers with 1000s of acres, they buy the equipment. Ever look into the cost of that really big stuff? Many go in hock and hope for mother nature to cooperate. It could be like you just buying a new car, a diesel pusher or a house and then losing your job and know that you aren't going to find another job for a least a year... maybe longer. But, low production because of mother nature will bring back a higher price per bushel the next year... if it's a good year and you and your equipment are able to withstand the tough times.

For the corn farmer to switch to other vegetables requires different equipment and a lot of "illegals" to plant and harvest. Forget many fruits, orchards take a lifetime to grow.

The world will always be needing corn, particularly in the future (2050) to help to keep the world (or part of it) from starving.... think of those children who won't look forward to having a car, unless they develop their hijacking skills, but if they have the means, they will do most anything in order to eat.

So, in the worst case scenario, do you think it more important for the government (taxpayer) to make sure the farmer stays in business (especially the small, local farmer) or GM?
Edited by Banandangees, Dec 20 2013, 11:09 PM.
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Mountainrivers
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Banandangees
Dec 20 2013, 11:04 PM
Then there are some really good things that come from corn. It's fun and easy to grow. I suppose so many farmers grow corn, rather than other vegetables and types of fruit, because it's so much less labor intensive, comparatively. Don't need as many low wage employees. But to make it so less labor intensive, they have to buy this expensive equipment; in the case of the small farmer, rent it or contract it out to someone who does it specifically for a living (contractor). But, for the really big farms in MR's territory, farmers with 1000s of acres, they buy the equipment. Ever look into the cost of that really big stuff? Many go in hock and hope for mother nature to cooperate. It could be like you just buying a new car, a diesel pusher or a house and then losing your job and know that you aren't going to find another job for a least a year... maybe longer. But, low production because of mother nature will bring back a higher price per bushel the next year... if it's a good year and you and your equipment are able to withstand the tough times.

For the corn farmer to switch to other vegetables requires different equipment and a lot of "illegals" to plant and harvest. Forget many fruits, orchards take a lifetime to grow.

The world will always be needing corn, particularly in the future (2050) to help to keep the world (or part of it) from starving.... think of those children who won't look forward to having a car, unless they develop their hijacking skills, but if they have the means, they will do most anything in order to eat.

So, in the worst case scenario, do you think it more important for the government (taxpayer) to make sure the farmer stays in business (especially the small, local farmer) or GM?
Well, as a previous poster said, I see no reason why both can't stay in business. Farm subsidies, imo, should be allocated every year and put in a trust for when it's needed, but only doled out when the money is needed to keep the farmers in business. Unfortunately, we know that any money in a government trust will be spent on something else.
Large farm equipment is incredibly expensive. There was a used tractor on Craigslist a few weeks back that they were asking $295,000. Combines can go for a million dollars or more.
Other parts of the world are producing corn for the reasons you stated, so, much of the demand will be picked up there, I assume.
If I had to make a choice, I would opt for the farmers.
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Neutral
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Who the hell pays that much for a tractor or a combine? LOL
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Mountainrivers
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Dec 20 2013, 11:55 PM
Who the hell pays that much for a tractor or a combine? LOL
Here's John Deere's pricing. It all depends on what you want to add onto the tractor or combine.

Here
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