Friday, May 16, 2008

It's A Goldilock's World!

I was reading one of Jason's Farm Future magazines and I came across an article by Steve Ford titled "More mouths to feed". If you are at all interested you can go to www.FarmFutures.com to read the whole article, which I would recommend.

But I want to quote some of what he said, becuase it is exactly our feelings as well.
"I still can't get over how critical our society is of farmers. When we aren't being accused of harming the environment, we are targets of those who think we make too much money and consequently need no farm programs. There are others who think we do economic harm to the world's poor. A few years ago our critics argued that government programs were causing us to overproduce, depressing world food prices and hurting small farmers in the developing world. Now our critics say that biofuel subsidies result in world food prices that are too high, hurting urban poor in the world."

He goes on and asks the questions, do we have a moral responsibility to feed the world cheaply? Does that responsibility outweigh the need for a renewable and domestic alternative source of fuel? The food vs. fuel concern is very real. However, US corn production has expanded much more quickly than the ethanol use for corn, BUT (this is for everyone who blames ethanol for high food prices) prices have remained high DUE TO INCREASED FOREIGN DEMAND for US grain, meat and dairy exports!! It gets so old to hear people complaining about ethanol and our food prices, how about our demand on exports and the price for crude oil?

There is "talk" about the government stepping in and cutting corn prices, which is all fine if the cut crude oil prices as well (which they won't). The input prices to grow any crop are unbelievable and cutting corn prices won't change the cost of food for the better, but will cause food prices to go up because farmers will not be able to produce corn and survive! My uncle put it best the other day when he said that one day the rational people of this country are going to have to take over! Unfortunately, I don't see that happening anytime soon.

In the words of Mr. Ford, "It is as if farmers are the three bears and we live in a Goldilock's world, but one where there is no porridge that is just right."

4 comments:

Janette's Joys said...

2 thoughts:
a) You go girlfriend!
b) It is so scary how unrational people are in general, so thank goodness for your blog and a few rational people that put in the effort to educate others. Make sure you keep posting stuff like this so that the rest of us can attempt to become even more rational:)

Unknown said...

We should get Aunt Cousin Kellie to weigh in with her ag economics expertise.

That spider web effect (ala Dr. Carl Shafer) of supply and demand is driven by changes in supply and demand. And part of what drives supply are the input costs. How can they seriously consider cutting corn prices and not fuel prices??!?!! Do they think you still have the oxen to plow and harvest?

Maybe you could become the dooce of the farming world:)

Allison said...

Thank you so much for growing my business! What is your second cousin's name? I'm wondering if it's someone I'm working with now.

Enjoyed reading this post. It's nice to see "the other side," even when I don't know a lot about farming.

Looks like we have the whole Barnard crew on the blogging bandwagon...now, we just need to get Helen one, and make Janeen post!

Candice said...

I'm glad you are happy for the business. You'll probably hear from my aunt, Paula Harris. They live in California.