I know prices will drop like astone but it isn’t the fault
of ethanol, it will be because speculators went elsewhere.
And we increased production to cover the extra exports also. I see the elevators and corn bins setting
around half full, enough to meet needs till
fall harvest. There is no shortage.. And farmers are
not going out and buying new combines just because of
a price bubble, but just as needed replacements at
a fairly steady level, same as before, replacing
worn out ones. But CEO syndrome in farm supply/middlemen
business says we get 250,000 for combine at 3 dollar
corn and 500,000 at 6 dollar corn. When corn takes a hit
will that come down, I doubt it. But it ain’t the fault
producing more corn for whatever use, it is speculators
screwing up the system. But if corn takes a hit
like back to 2 bucks the ethanol use will jump, farmers do
more to pay bills, and whatever shortfalls farm has between
cost, low price, back to price supports.Then hear bitching,
and even if you stopped ethanol the price is lower yet,
needing more price supports. This whole beating on ethanol bit is people thinking we are going to starve, so
when farm stuff crashes, they can’t let no farm fail,
so price supports. They get cheap food, and the 15%
to pay 80% of the taxes prop up farms so all those thinking they are poor/starving get good food prices.
Hell of a way to run a railroad as old
timers used to say..ED
Of course not. In a free market, supply meets demand. The demand for farm equipment is up because, as you pointed out, farmers have more cash now because farm income is up this year. Not only that, but the dollar is down, making US products cheaper and so foreign sales are way up.
"Farm equipment exports to South America grew 46 percent in 2007, with purchases totaling $689 million dollars. Africa took delivery of $247 million dollars worth of American-made agricultural equipment in 2007, a gain of 28 percent, and exports to Europe increased 24 percent and totaled $3.3 billion dollars."
http://news.thomasnet.com/companystory/540944
I don't understand what you want to do with the futures market. Abolish it? Or just use it as an excuse for the problems of farmers.