Food inflation is the killer of all business cycles

[gregpet]

That's the problem smallguy, you are guessing and trying to understand what they are posting. If posters cannot take the time to use proper grammer and spell correctly then I don't have the time to read their posts, I just skip right over them since their jibberish does not add to the discussion for me.

[vvalk]

smallguy. There is two arguments here pertaining to the CWB.
1. You can strictly talk about whether to market with a FPC vs stay in the pool since we are stuck with the CWB and lets deal with it

or

2. You can be pissed off that you have two choices that are basically the same thing. Both of which are $1 or more below the market price nevermind delivery and payment. You can then try to make changes so that we can put hundreds of millions of dollars back into farmers pockets. This is 100% profit therefore a windfall for the govt in taxes, dealerships, new farmers, local ecnonomies etc

[burnt]

I think so too Grassfarmer, but that is a bit of a strange one to see that type of action. Time will tell. Meanwhile, the cash market is strong, the calves are putting on pounds and spring is just around the corner.

Well - all but the last one ain't bad!

[ado089]

Food inflation would need to go up 10X to keep pace with oil inflation over the last 80 years. The only thing keeping Africa poor is the africans. Mark my words, Africa is the last agricultural frontier but I don't think we'll see it developed in my lifetime...maybe the end of the century.

[jensend]

i think what has to be considered is that for a fair chunk of the world's population food is a bigger portion of spending than energy. a doubling of food costs and there is nothing left for discretionary spending and thus the rest of the economy will slow down. that's how food prices affect the business cycle. to sit and fume over this is to deny logic. if you have to spend more in one place, over time, you will spend less somewhere else. simple arithmetic tells you if people are struggling to feed themselves they won't be buying the 50" plasma tv anytime soon.

[wmoebis]

Getting a bigger portion of food spending back to the primary producer and the ability to retain it should be our common goal. The price of raw products can raise but there is too many hands in the pie to take it away. Middle men and suppliers take too big of a piece and we are no further ahead. We see this in all commodities.

Everyone is cutting costs and increasing revenue to increase thier bottom line but we producers pay for all that. Rationalization, diversification, amalgamation, specialization etc. all the time the farmers are expected to pay for these shuns.

[charliep]

[Burbert]

HUNDREDS OF MILLONS OF DOLLARS in farmers pockets??????????????????????????

[wilagro]

Yep, lets get back to the days of "take or leave it" trading where its every dog for himself.

They'll pick pick your bones clean and look for the next sucker.

[checking]

Yes, burbert, it is hundreds of millions.

You are sharp enough to realize that for each 1 million tonnes of wheat sold, a dollar per bushel equates to $36.744 million. If you were making a profit on wheat at the present CWB fixed , or expected price, then that entire dollar above that of the CWB price is pure profit. The market price is this much higher.

Is the CWB worth more for you to keep than pure profit is worth in your pocket?

[vvalk]

Wilagro. With the CWB protecting you from these predators then wheat and barley acres must be exploding. All those scary open market grains like canola, pulses and specialty crops must be in decline.

[FarmRanger]

In canola we're the dog; in wheat, the fire hydrant.

[ado089]

Jensen. Your logic suggests that money spent on food is somehow worth less to the economy than money spent on anything else. As long as the money being spent on food is reinvested and grows it will not effect the overall economy. It's like taking 5bucks from one pocket and putting it in the other and saying you have no money. Sectors cycle just because things will look different 10 years from now then they did 10 in the past doesn't mean it's bad.

[Burbert]

Sooooooooo, once the CWB is gone, its all profit for Comedian farmers? You don't think that some other entity, like a greedy grain company er incredibly greedy railroad, might think they are entitled to some more profit and raise their rates? Then with nobody to represent them, Comedian farmers might in fact become BIGGER LOSERS than they currently are? Or would the open market come to their rescue and stifle the greed to help all Comedians?

[jensend]

all i'm saying is that you can't spend it twice. the premise is that if food inflates it will affect the business cycle because it cuts down on spending in other sectors. if food spending goes up does it necessarily mean more is consumed?