EC Nebraska | DCH - 12/23/2024 12:49
There are very good reasons that you don’t want to trade places with Brazil.
1990-1995– peak CRP acres. All that land and more have to go back into CRP (or not be farmed), just to put us at $2.50 corn. Maybe $3.50 with todays cost structure
Point is, the only place producing is where they do it at the top end consistently— and that consistently is very important.
End result, most here aren’t farming.
There were 10 million more acres in CRP then than there are now. *shrug* Maybe there'd be a bit more grass-fed beef produced. I'm not sure that's a bad thing.
It would be interesting to sit down with you and try to understand why you think that, or how you think that it would play out. It makes no sense to me, so I'm sure that we have some fundamental differences in our basic world view. I simply don't see subsidies as that vital because I don't see costs as even remotely "fixed".
As I said before, I'm more than 75 miles west of Omaha. No farmland here is going to go out of production at $3.50 corn. Sub-$3.00 for a year w/o any subsidies, and things will get interesting, but that price level will also find demand in places that didn't think they needed corn. I'm really not concerned about the possibility of sub-$3 corn for more than a few months.
There's a lot of fat to trim before "most here aren't farming" |
Subsidies
