5 ms·

Yes. Also, unwanted farming equipment is easy to sell.

randomdata 9y ago
As a Canadian corn grower, I'm not sure how the US (or Canadian for that matter) government is subsidizing me growing corn, but the reality is that the prices were still quite strong at the start of the year when we were looking at contracts for the season. I'm very happy with my corn position this year. We may have reevaluate growing corn in the future if the market does dry up (although for crop rotation purposes that is a hard choice to make), but when the market is buying it at a profitable level, why wouldn't we grow it?
- protomyth 9y ago
  For the US, the subsidy most cited is ethanol subsidy. Might have something to do with the first primary state being Iowa.
  - toomuchtodo 9y ago
    > Might have something to do with the first primary state being Iowa. This is entirely why the ethanol subsidy remains. I have high hopes the electric vehicle movement kills this.
- thisisit 9y ago
  US government has the farm bill which provides some form of insurance: https://www.washingtonpost.com/news/wonk/wp/2014/01/28/the-950-billion-farm-bill-in-one-chart/ https://www.washingtonpost.com/news/wonk/wp/2014/01/28/the-9... This provides a price insurance for farmers. This year's price was set at: $3.96 per bushel for corn and $10.19 per bushel for soybeans (reference - http://www.wisfarmer.com/story/news/2017/03/08/corn-soybean-prices-set-2017-crop-insurance/98891684/ http://www.wisfarmer.com/story/news/2017/03/08/corn-soybean-...) So with the support prices, unless the yield prices goes below support, people will still grow corn. As how does it affect Canada? For one, Canada will surely be having it's own insurance program. Second, It is a simple arbitrage play, if Canadian supply is cheaper people will buy cheap corn from there and import to US. Curious what price level you would say is unprofitable to grow corn?
  - bandrami 9y ago
    > Canada will surely be having its own insurance program Interestingly, no. Canada subsidizes farms, whereas the US subsidizes crops.
  - randomdata 9y ago
    > Canada will surely be having it's own insurance program. The main one is production insurance, protecting against disaster events like weather. It doesn't focus on price. Of course, it applies to all crops, not just corn, providing incentive to grow something – whatever is profitable due to market demands – but not corn specifically. In the last few years there has been an addition of a program that sounds more like you describe the US system, but it seems ill-conceived and not clear how you would ever get your premiums back. I have not enrolled in it personally. It definitely is not impacting my decision to grow corn. > if Canadian supply is cheaper people will buy cheap corn from there and import to US. Naturally, but that only works if there is demand. The parent seemed to be suggesting that the US government subsidizes US farmers to grow corn due to the absence of market demand. > Curious what price level you would say is unprofitable to grow corn? I would say the breakeven point is somewhere around $4.50/bu. for my business. I have most of my corn crop sold at $5 this year, so I'm comfortable with those margins. Wheat is the crop that is going to be a money loser for the foreseeable future.
- justinator 9y ago
  <em>but when the market is buying it at a profitable level, why wouldn't we grow it?</em> Because much of corn is turned into HFCS, which is so cheap it's added to everything, which is causing a huge spectrum of preventable diseases, such as metabolic dysfunction, which in turn is partly the cause of bankrupting national healthcare programs?
  - zdkl 9y ago
    Says the guy posting stuff on the internet with a machine full of petroleum derivates, rare minerals and "slave" labour. Not to mention the stuff used to make the electricity required.
    - falsedan 9y ago
      https://rationalwiki.org/wiki/Not_as_bad_as https://rationalwiki.org/wiki/Not_as_bad_as
      - zdkl 9y ago
        So I get a remark for logical fallacies, but the parent's statement is sound to you? Sheesh... All I'm saying is if he had the convictions he professed, we wouldn't be on this tangent. But since "Not as bad as" isn't a valid argument, by all means, let's keep remarking on trivialities.
        deleted 9y ago
        [deleted]
        falsedan 9y ago
        https://rationalwiki.org/wiki/False_dilemma https://rationalwiki.org/wiki/False_dilemma
        zdkl 9y ago
        https://www.merriam-webster.com/dictionary/petty https://www.merriam-webster.com/dictionary/petty
danmaz74 9y ago
Not during the Great Depression

As a Canadian corn grower, I'm not sure how the US (or Canadian for that matter) government is subsidizing me growing corn, but the reality is that the prices were still quite strong at the start of the year when we were looking at contracts for the season. I'm very happy with my corn position this year. We may have reevaluate growing corn in the future if the market does dry up (although for crop rotation purposes that is a hard choice to make), but when the market is buying it at a profitable level, why wouldn't we grow it?

protomyth 9y ago
For the US, the subsidy most cited is ethanol subsidy. Might have something to do with the first primary state being Iowa.
- toomuchtodo 9y ago
  > Might have something to do with the first primary state being Iowa. This is entirely why the ethanol subsidy remains. I have high hopes the electric vehicle movement kills this.
thisisit 9y ago
US government has the farm bill which provides some form of insurance: https://www.washingtonpost.com/news/wonk/wp/2014/01/28/the-950-billion-farm-bill-in-one-chart/ https://www.washingtonpost.com/news/wonk/wp/2014/01/28/the-9... This provides a price insurance for farmers. This year's price was set at: $3.96 per bushel for corn and $10.19 per bushel for soybeans (reference - http://www.wisfarmer.com/story/news/2017/03/08/corn-soybean-prices-set-2017-crop-insurance/98891684/ http://www.wisfarmer.com/story/news/2017/03/08/corn-soybean-...) So with the support prices, unless the yield prices goes below support, people will still grow corn. As how does it affect Canada? For one, Canada will surely be having it's own insurance program. Second, It is a simple arbitrage play, if Canadian supply is cheaper people will buy cheap corn from there and import to US. Curious what price level you would say is unprofitable to grow corn?
- bandrami 9y ago
  > Canada will surely be having its own insurance program Interestingly, no. Canada subsidizes farms, whereas the US subsidizes crops.
- randomdata 9y ago
  > Canada will surely be having it's own insurance program. The main one is production insurance, protecting against disaster events like weather. It doesn't focus on price. Of course, it applies to all crops, not just corn, providing incentive to grow something – whatever is profitable due to market demands – but not corn specifically. In the last few years there has been an addition of a program that sounds more like you describe the US system, but it seems ill-conceived and not clear how you would ever get your premiums back. I have not enrolled in it personally. It definitely is not impacting my decision to grow corn. > if Canadian supply is cheaper people will buy cheap corn from there and import to US. Naturally, but that only works if there is demand. The parent seemed to be suggesting that the US government subsidizes US farmers to grow corn due to the absence of market demand. > Curious what price level you would say is unprofitable to grow corn? I would say the breakeven point is somewhere around $4.50/bu. for my business. I have most of my corn crop sold at $5 this year, so I'm comfortable with those margins. Wheat is the crop that is going to be a money loser for the foreseeable future.
justinator 9y ago
<em>but when the market is buying it at a profitable level, why wouldn't we grow it?</em> Because much of corn is turned into HFCS, which is so cheap it's added to everything, which is causing a huge spectrum of preventable diseases, such as metabolic dysfunction, which in turn is partly the cause of bankrupting national healthcare programs?
- zdkl 9y ago
  Says the guy posting stuff on the internet with a machine full of petroleum derivates, rare minerals and "slave" labour. Not to mention the stuff used to make the electricity required.
  - falsedan 9y ago
    https://rationalwiki.org/wiki/Not_as_bad_as https://rationalwiki.org/wiki/Not_as_bad_as
    - zdkl 9y ago
      So I get a remark for logical fallacies, but the parent's statement is sound to you? Sheesh... All I'm saying is if he had the convictions he professed, we wouldn't be on this tangent. But since "Not as bad as" isn't a valid argument, by all means, let's keep remarking on trivialities.
      - deleted 9y ago
        [deleted]
      - falsedan 9y ago
        https://rationalwiki.org/wiki/False_dilemma https://rationalwiki.org/wiki/False_dilemma
        zdkl 9y ago
        https://www.merriam-webster.com/dictionary/petty https://www.merriam-webster.com/dictionary/petty

danmaz74 9y ago

Not during the Great Depression