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p>Get out your calculator. It went as follows: "Basic Formula Price (BFP) = {last month's average price paid for manufacturing grade milk in Minnesota and Wisconsin + [current grade AA butter price X 4.27 + current non-dry milk price X 8.07 - current dry-buttermilk price X 0.42] + [current cheddar cheese price X 9.87 + current grade A butter price X 0.238] - [last month's grade A butter price X 4.27 + last month's nondry-milk price X 8.07 + last month's dry-buttermilk price X 0.42] - [last month's cheddar cheese price X 9.87 + last month's grade A butter price X 0.238] + (present butter fat - 3.5) X [current month's butter price X 1.38] - [last month's price of manufacturing grade milk in Minnesota-Wisconsin X 0.028]}."

ok i have a huge headache now does anyone have some aspirin and a glass of mil........er water to wash it down with ?

1 posted on 02/23/2003 1:57:09 PM PST by freepatriot32
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To: freepatriot32
Can the free market provide perishable diary products to consumers at reasonable prices?

Hmmm. I would wonder about this. Milk is a persishable for sure. Bringing it over via ship, which is the only way you could get milk overseas (sounds about right) would seem to cut into the shelf life.

Why can't American farmers use this as a selling point? Fresher milk that keeps longer?

2 posted on 02/23/2003 2:02:53 PM PST by Fury
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To: freepatriot32
I’ve worked in agriculture for 30 years, and there are a few things that are incorrect [or incomplete] about Bovard’s article:

1st The article misses a number of pricey “hidden subsidies” that cost at least as much as direct price support. For example: “free” USDA research programs, the “free” agricultural extension service, “free” educational services and research in the land-grant universities [in addition to ag extension], “free” dairy promotions, and so on.

2nd, NZ and Aussie farmers can’t produce Milk for <1/2 of what our farmers can do. The actual $ number is more like 70% of the cost, however, since there has never really been any competitive pressure on the US dairy industry we don’t really know. There are definitely US producers who can produce milk more efficiently than they can in New Zeeland, but they don’t need to, because, as the article correctly points out, we have a socialist dairy economy.

3rd, It isn’t true that corporate farms produce milk more cheaply or more efficiently than family operations. The truth is that in a competitive environment, family farms would not be going out of business. But, since subsidies favor those with high raw production, [who already benefit form economies of scale] we are killing our family farms with the very subsidies that are supposed to protect them, and finally,

4th. the post fails to address the fundamental problem with subsidies of any kind: they hurt everyone. They hurt consumers, yes. They hurt taxpayers, yes. But they hurt dairy farmers more than any other group. Subsidies always do the most harm to the very people who’ve been hoodwinked into believing they’re beneficiaries. If the subsidies would end, about 50-60% of our least efficient farmers would go out of business. This would not only lower costs to consumers, but it would allow those who remained to actually make some money. What the article doesn’t tell you is that the dairy economy is tremendously depressed and has been so for more than 15 years because there are so many bad businessmen, hobby farmers, and just incredibly under-educated people on the [agricultural] public dole. Keeping them there depresses prices and drives good farmers out of business.

Yet, I can’t tell you how many FFA, 4H, DHIA and Holstein Association dinners that I’ve attended over the last 30 years where farmers and farmer’s wives have berated me for being against subsidies. When I point out to them that there have been numerous studies [including an excellent one just recently by the Heritage Foundation] that prove that subsidies hurt dairymen, they simply don’t believe it.

Why is Social Security the 3rd rail of American politics? For the same reason. Because you can't convince old people that Social Security is damaging them. But it is. And price supports, federal milk marketing, and all the rest, are destroying our diarymen as well.

3 posted on 02/23/2003 3:05:59 PM PST by FredZarguna
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To: freepatriot32
Re: Its alleged crime? Selling milk too cheaply.

Former Senator Proxmirer was one of the Saddams of the milk cult that gave us the Mother of All Price Fixing.

BTW, dBeers does the same with diamonds. When ever there is a new strike, dBeers is there to make the deal to keep it off the market to keep the prices high. Diamonds should be $2.99 a gallon, the same price a quarters worth of milk is today.

7 posted on 02/23/2003 4:40:04 PM PST by sonofatpatcher2 (Love & a .45-- What more could you want, campers? };^)
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To: freepatriot32
Take the federal dairy program out behind the barn and put a bullet in its head.

The taxpayers have been getting ripped off on taxes and in buying the milk for decades. End all the subsidies NOW!
8 posted on 02/23/2003 4:56:06 PM PST by George W. Bush
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To: freepatriot32
If you think MILK subsidies are bad, check out tomorrow's Wall Street Journal for the difference in the price of world sugar and domestic sugar.

P.S. Don't forget the republicans have been in control of the House since 1/95 and that great group of "conservative smaller government" reps have done NOTHING about these subsidies (and haven't cut any type of spending for that matter).
13 posted on 02/23/2003 8:11:54 PM PST by Founding Father
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