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Post by papapap on Aug 23, 2011 6:45:21 GMT -5
FHA had a phase where they basically would not lend for row-crop operating money but very lenient for dairy. Lot of start-ups,few of which survived, but added to imbalance. Nothing ruins ag. prosperity like prosperity, esp. with gov't help.
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Post by glowplug on Aug 23, 2011 9:46:53 GMT -5
you nailed it papa.
Govt. provided the incentives to over produce dairy products then provided the brainfart Whole Herd Buyout that further screwed over Upper Midwest dairying families.
There were better answers than the Herd Buyout but the IDFA controls US dairy policies. The IDFA wants cheap milk, and doesn't care if it is domestic cheap milk or imported cheap crap. I miss my cows, miss the milking time, but the extreme bust-boom-bust pricing is bad policy.
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Post by papapap on Aug 25, 2011 16:22:16 GMT -5
Bob Cropp had an article recapping the support pricing history for that time period in the Aug. 10 Hoard's Dairyman.
With inflation in the 70's, the parity formula pushed the support price up from $7.24/cwt in 1975 to $13.10/cwt in 1981. That year gov't purchases of surplus dairy products were equivalent to 12% of milk marketings with an annual cost exceeding $2 Billion. Congress changed from using the parity formula that year and started racheting the support price down.
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Post by larrydc on Aug 25, 2011 17:56:11 GMT -5
So what report or comic book came out today to turn cheese and the CME?
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Post by jrtheoriginal on Aug 25, 2011 20:02:54 GMT -5
I do not know for sure. But after reading the cold storage report I just don't think it was a bearish at all! Yea we got alot of american cheese but not so much more than we have had historicaly. We are also short on butter still. And now that fall is here and prices of corn haven't dropped I think processors would rather payup now rather than not be able to buy any later. I'll keep doing some digging but for now it might just be they herd I was in a vice and just wanted to give me some relief! LOL
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Post by glowplug on Aug 26, 2011 14:13:16 GMT -5
The question is, at what price for grain, (either buying corn-beanmeal or selling grain) will you pull the plug instead of running grain through the cows?
Glowplug
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Post by pldairy on Aug 26, 2011 16:14:25 GMT -5
its close,but anouther thing I have to look at is what will we do with all this late corn we have here? Iam ready to sell out,3 years of this crap is enough
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