It doesn't feel like rationing but $12 a pound for beef is not normal ~ on the other hand $2 a pound for pork is a little more on target, and $1 a pound for chicken does make sense.
The market did only part of that ~ much of it was done by cutting us off from Canadian beef ~ fear of Mad Cow Disease! But chickens and pigs utilize grains more efficiently than do cattle ~ at least for meat.
When it comes to milk, the law was originally written when most regions had their own local dairy industries. They'd just had the experience of the Dust Bowl and that period's association with a different great drought.
Price supports were thought to be useful for keeping the local dairies in business no matter what happened to the local grain markets, plus, the greatest users of dairy products were families with children ~ and at that time the youth were the most likely to be poor and unable to afford milk for their babies (many Freepers were babies then BTW).
Market theories tend to collapse in the face of great droughts ~ at least when we are talking about agriculture. The way this system works now is the background costs to produce a gallon of milk sky rocketed ~ milk price support levels increased accordingly. When the drought ends, the background costs will decline and milk price support levels should decline accordingly.
Lurking in the background is the lost opportunity cost of the dairies ~ they could send their cows to slaughter and get a chunk of that $12 per pound retail beef price!
That would reduce the milk volume and increase the price even more.
Total elimination of the price supports will result in the herds being slaughtered and the price of milk rising far higher than a pitiful $8 per gallon!
“Total elimination of the price supports will result in the herds being slaughtered and the price of milk rising far higher than a pitiful $8 per gallon! “
Any idea how much milk the US Govt buys? Either directly or through food stamps and other programs?
$12/pound beef? What cuts are you eating?
Shop around.
Cattle markets are around $1.3-$1.40 per pound to the producer.
Choice box beef market is $1.80-$2.00 per pound to the processor.