Quote:
|
Originally Posted by Rich Z
Wow! How do I get into this program to NOT farm my land?  |
Most people don't understand agriculture business and fail to grasp the importance of farm subsidies. If this was not done we would have chaos in the farm industry.
The farmers are prevented, by these subsidies, to speculate on which crops would be the most profitable to grow.
In other words, if trade publications would forecast high soy prices for the next year, farmers would all grow soy beans and the price would plummet. This would cause many farms to go under. In addition, those who grow corn would make a windfall profit due to the corn shotage. corn price would do as you would expect.
The price of corn has skyrocketed in the last year. Not only is corn sold to consumers to eat, it's what pigs eat. Many pig farmers have their own corn fields but others buy corn on the open market to feed their livestock. Hence, the price of pork goes up too.
It's simple Economics 101.
Eric