Roadside Hay Salvage

[rodbradshaw]

$15 dollars /acre on a third of my acres is for easy calculating is $7500. In our area that could be 30,000 bushels of CWRS,37,500 CPS, 55,000 of feed barley, or 20,000 of canola off 500 acres of land. If this plan is to work their is going to have to be a more sever penalty than two bushels of canola ( at $7.50). If you can drive the price of wheat from 4 to 6 dollars, that would mean an extra revenue of $60,000 for an extra investment of $7500. Large farmers may look at it just like spraying that extra fungicide.

[rodbradshaw]

It would not be good for the grain terminals, processing plants trucking companies ect.

[plowjockey]

I don't think large farms will treat it like that at all. They over the long term and short stand to make very well if the grain prices were to rise 2-3 times. A large part of the truckers are farmers themselves trying to put groceries on the table. Maybe the rest could haul us new equipment to replace our 20 year old stuff! Farmers always spend money! Grain terminals well when is the last time you got a check from Cargil for the early loading of a ship or a bonus for your loyalty, Or did you just have to pay more for that feed bag because of price fixing! Sometimes it is just easy to criticize than to try and help shape a plan to solve the problems. Don't get me wrong it is good to check all angles out!

[cakadu]

From my perspective, it isn't criticizing the plan so much as trying to understand it, hence the questions and comments.

What I am wondering about is if you're able to create the scenario where you can get higher prices, how long is that sustainable? How many years can producers go without producing anything? What happens when the anomaly of the higher prices disappears? Won't there be the same problems to contend with that you had before?

[wilagro]

I have been producing nothing for years and I'm still not rich. Trying to manipulate the price we get for a commodity is like sticking your head in the sand while the rest of the world goes about it's business as usual. The so-called market place will find supplies even if we produce nothing for 10 years. Sorry to rain on your parade but this scheme will not fly.

[cowman]

Now I'm no expert on FOS but I think they've got the right idea, basically. It's the old supply and demand thing. Cut the supply and the demand goes up. It doesn't make much sense to keep producing a product that is in over supply. Isn't this basically what OPEC did? And look where it got them. Sure some oil producing countries didn't go along with OPEC but it still was able to raise the price(and a lot of impoverished nations suddenly moved way up in the world). Of course they weren't competing against the US and EU treasuries like the grain producer here and in Brazil are!
But the fact of the matter is the economics of grain production in this country are shaky at best and eventually any business that can't generate enough profit is going to be toast. I figure, what have you got to lose?

[ckd129]

It neglects the free-rider problem. Your neighbours, as well as those on the international market place will respond by increasing acreage.

[mister]

Could I ask one thing of everyone? Please find out more about the FOS idea. Go to their web sight, ask for a free video and most importantly, don't look at it with a closed mind. I was among the first to laugh at this organization but after clearing my mind of traditional thinking I bought a membership.
I read some of the above comments realizing many people still don't understand FOS. You owe it to yourself.
I spent more money filling out forms for government programs and got nothing from them than the $250 membership I bought so you can watch a free video. Anyway... just learn more about Focus on Sabbatical, especially before replying to this thread,
Thanks! go to www.focusonsabbatical.com

[ckd129]

Quoting FOC:

"Our proposal's ultimate success relies on certainty of compliance. Therefore, this second step is an all or nothing proposition. Only broad based participation will verify farmers are committed and that the projected benefits are acceptable to keep them committed. All share money is held in trust until we reach our goal. In event of insufficient participation, the share money will be returned and the production contracts made void, and farmers will remain at the mercy of a ruthless market. This proposal is good for all farmers and is only possible IF most farmers participate."

I have read the website, but like they say, only possible if most farmers participate. That is a big IF!!!

8 billion bushels less production? What will this do the rest of the agriculture industry. ie) farmers do own cattle.

With the grain we do produce - will we manage it through another gov organization akin to the CWB. Only makes sense doesn't it. That way, maybe we could ensure that everyone gets a little bit of grain in the sab year. Otherwise, the rich countries will buy all the grain, because there will be a shortage and they will pay more than the poor countries. So what happens then, the poor countries livestock all dies???

We know in w. Canada that if there is no feed, then we have to sell our cattle. Take this year for example.

[plowjockey]

Well I quess there will always be people that are not willing to open their minds to a new and different perspective. I often notice quick shots at the cwb while trying to make a point.I call this the free market paranoia. At no point have I ever heard that FOS had anything to do with Government. It sounds more like a co-operative.I suppose there are some farmers that hate the idea of co-operating. It was not that long ago that our great grandfathers and grandmothers built the farms, schools, churches,and the communities we enjoy today through co-operation, hard work and initiative. I believe in free enterprise as much as the next guy, however capitalism has its flaws as well. The current state of the Stock market combined with new scandals surfacing daily prove this point! It would be great to see farmers co-operating globally to insure profit at the producer level. There has to be a balance.

[ckd129]

I wasn't trying to be overly negative, just lots of other what If's.

I believe that uniting in other ways would be more productive. In terms of buying power and selling power. Selling power - currently everyone delivers to the elevator independantly. What type of organization could be useful to better negotiate contract terms with larger corporations? Producer owned terminals have been a start.

International agreements which require the particapation of hundreds of thousands of producers will be difficult.

I wish you the best though.

[snell]

It never ceases to amaze me but it seems we are the only industry that believes the answer to low prices is to produce more. No other business does this. Even the massive oil industry understands this simple concept. It boils down to simple math and if we paid more attention to this we would naturally spend less (on inputs) and produce less. We seem to embrace every new technology that comes our way ( in fact we finance most of it) that will help us grow more than our neighbor. A lot of this new technology allows production of commodities in parts of the world that would never have a hope of producing before. Canola is a prime example. It used to be difficult to grow and took a lot of expertise and risk. It is now easier than ever to produce hence more production (except for this year).

We are driven to spend all this money to produce more and then we demand " at
least we need our cost of production" Well why is our cost of production so high
when the return is so low. If we would bring our costs in line, production would
naturally drop and prices would rise but no, we will go get an outside job to fund this craziness. We have gotten away from economic thresholds for determining our costs. If I know I can only get $100 an acre out of a crop why would I spend $120 to grow it. We have to learn to relax, spend less and enjoy life a little more. When you farm in a desert there is no amount of money is going to grow a crop big enough to support the huge grain, chemical and biotech companies we (the farmers) have created. (by the way I am not a ludite, but even this wonderful computer has tended to increase my stress level most times).

It seems to be taking me a long time to learn what my old man tried to tell me for years. Some of the most important things don't cost a lot like the importance of early sedding, crop emergance, crop competition, recycling and only spend money that is going make you more than it costs and most importantly have fun.