Why are Farmers never happy?

[intrepid27]

I think a lot of farmer's frustration stems from large amount of variable that they can't control. Weather, commodity prices, input costs, etc. They can mitigate some risk but not all.

IMO most commodity programs are not designed to make farmers rich. They are designed to make sure we have cheap food and that Cargill, ADM, Bunge, etch have a reliable supply of cheap corn.

 

[WISCY1895]

And usually an oligopoly leads to higher prices than a monopoly. In a monopoly, they will lower the prices slightly to make sure that there is not a competitor that can realistically enter, so a monopoly generally has lower prices.

I would definitely say that is where we are with things like cell phones

 

[sleestakCy]

What's sad is that the farmers that actually grow and raise real food for my table...the CSA and farmer's market vegetable and fruit growers...the poultry, hog, and cattle producers that don't use confinement practices...don't get any subsidies or bailouts.

 

[BCClone]

What's sad is that the farmers that actually grow and raise real food for my table...the CSA and farmer's market vegetable and fruit growers...the poultry, hog, and cattle producers that don't use confinement practices...don't get any subsidies or bailouts.

You've been misinformed on some of that.

 

[davegilbertson]

I think a lot of farmer's frustration stems from large amount of variable that they can't control. Weather, commodity prices, input costs, etc. They can mitigate some risk but not all.

IMO most commodity programs are not designed to make farmers rich. They are designed to make sure we have cheap food and that Cargill, ADM, Bunge, etch have a reliable supply of cheap corn.

When I went to Iowa State I encountered quite a few rural kids that struck up small talk about the weather. I used to think this was very silly. Growing up in Cedar Falls, I only had direct relationship with 1 or 2 that actively lived on farms.

As I got older I realized how tied to the earth and weather farmers have to be by necessity. It's not some bellyaching for bellyaching or small talk to fill the time. It's rooted in talking about a shared common experience that is incredibly vital to survival. Not just that of the farmer from a financial standpoint, but from the people looking to be fed by the yield.

 

[WISCY1895]

What's sad is that the farmers that actually grow and raise real food for my table...the CSA and farmer's market vegetable and fruit growers...the poultry, hog, and cattle producers that don't use confinement practices...don't get any subsidies or bailouts.

First they are lying to you if that’s what you have been told. Also you have the luxury to afford to pay for those services. That route to market is nearly impossible to scale and keep prices low enough for people living paycheck to paycheck.

 

[Tre4ISU]

A Monopoly is one company controlling the market. The seeds business is not a monopoly

It, along with crop protection is by far the least monopolistic of all the Ag inputs. There are so many options for guys to get quality seed right now.

 

[WISCY1895]

It, along with crop protection is by far the least monopolistic of all the Ag inputs. There are so many options for guys to get quality seed right now.

Many of which are still independently owned companies. Stine is one of the largest soybean seed companies in the world and they are owned by the Stine family right there in central Iowa.

 

[Stormin]

Many of which are still independently owned companies. Stine is one of the largest soybean seed companies in the world and they are owned by the Stine family right there in central Iowa.

Harry Stine. Richest man in Iowa.

 

[CYEATHAWK]

Local farmer ***** session going on right now in our local Casey's. The six farmers their average 3000 to 4000 acres each. Very few farm topics on the agenda today. The only one I heard was on applying for derecho payments in addition to crop insurance.

I grew up on a farm and it use to be crop insurance was a "break even" in the event of wind or hail. I remember during drought years some farmers wishing for a wind or hail storm so they could break even.

Don't know if that's still the gap insurance fills..........but insurance is hardly "welfare" as with the spirit of this thread.

The other payments which we didn't have are probably the subsidy everyone is complaining about. My dad worked another job outside of farming. That is how he "subsidized" his business. Did that until the note for the bank was satisfied and then farmed full time.

When telling people what he did after he quit his job......mom would say "he doesn't work anymore.....he just farms". Laughed about that for years......and still do.

Anyway......I have ZERO problem with someone who has that kind of acreage applying for assistance if something out of his control mows down his investment. Can't run a business breaking even. And the days of working 8 hours a day and farming are long gone with the upfront cost every year.

To each his own I guess and people will continue to complain about people who will complain about people.

 

[nfrine]

I grew up on a farm and it use to be crop insurance was a "break even" in the event of wind or hail. I remember during drought years some farmers wishing for a wind or hail storm so they could break even.

Don't know if that's still the gap insurance fills..........but insurance is hardly "welfare" as with the spirit of this thread.

The other payments which we didn't have are probably the subsidy everyone is complaining about. My dad worked another job outside of farming. That is how he "subsidized" his business. Did that until the note for the bank was satisfied and then farmed full time.

When telling people what he did after he quit his job......mom would say "he doesn't work anymore.....he just farms". Laughed about that for years......and still do.

Anyway......I have ZERO problem with someone who has that kind of acreage applying for assistance if something out of his control mows down his investment. Can't run a business breaking even. And the days of working 8 hours a day and farming are long gone with the upfront cost every year.

To each his own I guess and people will continue to complain about people who will complain about people.

Question...do you know if crop insurance premiums are "subsidized" at a more favorable rate than would normally be the case?

 

[Stormin]

Federal Crop Insurance is subsidized. The highest coverage has the least subsidy. Wind and Hail Insurance are not Federal Crop Insurance. I don‘t believe they get subsidies.

Farmers get their Federal Crop Insurance Premiums reduced some by the government subsidies. The Premiums are still very costly. Most Lenders require Federal Crop Insurance coverage.

 

[BWRhasnoAC]

A Monopoly is one company controlling the market. The seeds business is not a monopoly

4 companies own 60% of the seed market. I'd post the page but it's pay wall. I'll look later, I'm working currently.

I'm sure you have great insight and I may very well be off base and I look forward to educating myself.

 

[Stormin]

Compensation to the Companies administering the Federal Crop Insurance Policies has been outrageous in the past. The amount of money made by Crop Insurance Agents was gross. They made a fortune. Court a few mega farmers and get their business. $$$$

 

[WISCY1895]

4 companies own 60% of the seed market. I'd post the page but it's pay wall. I'll look later, I'm working currently.

I'm sure you have great insight and I may very well be off base and I look forward to educating myself.

That isn’t a monopoly if the 4 big companies own 60%

 

[sleestakCy]

According to the CBO...The federal government pays about 60 percent of total premiums, on average, and farmers pay about 40 percent for federal crop insurance.

Private insurance companies sell and service insurance policies purchased through the program, and the federal government reimburses them for their administrative costs. The current Standard Reinsurance Agreement sets a limit for those administrative expenses (currently roughly $1.5 billion per year).

 

[Stormin]

That isn’t a monopoly if the 4 big companies own 60%

How many of those seed companies are into the chemical business?

 

[WISCY1895]

How many of those seed companies are into the chemical business?

The big 4 are all in the chemical business. BASF, Bayer, Corteva, and Syngenta. There are a handful of other large chemical companies who aren’t in seed. Like FMC and Valent. Chemical business in agriculture also has a very robust generic market. That’s where Denny Albaugh made his money.

 

[Mr.G.Spot]

Monopoly.

Seed companies have a monopoly?

Talk to or read about Harry Stine.

 

[Dirtguy4CY]

Actually our family would rather harvest the crop and do it the right way rather than except money.

Having a crop in the ground, even if its late and not great, is better then taking insurance most of the time.