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> And yet, the government pushes and incentivizes farmers to just grow more. I'm a corn farmer (along with soybeans, dry beans, and wheat). What particular inc
by randomdata 7y ago
> And yet, the government pushes and incentivizes farmers to just grow more.
I'm a corn farmer (along with soybeans, dry beans, and wheat). What particular incentive is there for me to grow more corn? I am honestly unsure of what you are referring to.
There is a natural incentive for me to stay within that group of crops because that is what my existing infrastructure is capable of handling. If I wanted to grow, say, tomatoes, assuming my locale is actually suitable for growing them commercially, I would need to set up an entirely new infrastructure to handle them at great cost. That doesn't make business sense. Accepting a bad year on corn sales to be made up in the good years does.
That said, new crop corn was at nearly $6 with the local basis applied a few weeks back. If you cannot plant and harvest corn at a profit at $6, you're doing something horribly, horribly wrong. The real problem this year – and what prompted the jump to $6 – is the wet spring that left us struggling to get the crop in. If you have a crop to harvest this year, and were savvy enough to sell it, you're laughing.
- pmorici 7y agoThe billions of dollars in subsidies the US Government spends on a handful of crops including corn? Mandates about things like ethanol that support the price of certain crops? They don't have to be in the form of direct payments to influence what a farmer does. [0] https://en.wikipedia.org/wiki/Agricultural_subsidy#United_States https://en.wikipedia.org/wiki/Agricultural_subsidy#United_St...
- jccalhoun 7y agoI think your point about the difficulty of switching crops is a good one. There is a lot of specialized equipment that goes into farming and farmers can't instantly switch crops any more than an independent grocery store could switch to selling clothes over night. However, regarding incentives. While there aren't "incentives" aren't there government subsidies? The article talks about $28 billion in new money for farmers to offset tariffs?