East Central South Dakota | I believe you are straight up wrong and are greatly dismissing the effects of Governmental policy on production agriculture. Crop insurance has taken a lot of the risk out of farming and if you take the risk out of any industry you will eventually lower profitability----Governmental policy. A 20,000-acre producer with the safety net of preventive plant can live off $20/acre margins easier than a producer of 1000 acres. The definition of inflation is too much money chasing too few of goods. Government policy has dumped too much money into production agriculture, with no teeth in payment limitations. The more you farm the bigger your payment----Governmental Policy. That next marginal acre we have to chase to own can be subsidized with CRP----Governmental policy. Besides land costs, Brazil does have environmental costs, regulatory costs and currency values that give them per acre advantages equal to a per/acre margin that would make us more profitable.
Your replies to this thread, for me, are very frustrating as there are half-truths in your thought process. You are simply wrong on discounting how much Governmental Policy got us to where we are as an industry. If we were an industry built and currently operating on a capitalistic business platform, I would agree 100 percent on your capitalistic based replies. However sad it is, our industry is closer to socialism then capitalism which turns your replies into a fantasy of half-truths.
The nature of your capitalistic replies will only work if we allow some people to fail. Government is trying to save everyone from what I see.
|
Soybean slaughter
