Productivity

[Hopalong]

Grain production in this area and on our farm has more than doubled in past 40 years.
See periodic comment that this hurts our profitability and is a bad thing.
Some want to take us back to way of life, smaller and diversified farm operations.
This would be bad, our profitability depends on accepting change.
Do not fall for the line that limiting production is a good idea.

[farmaholic]

So why does controlling production work for some industires but not Ag primary commodity production?

Because it's food and a cheap PLENTIFUL food policy placates the general public and they'll have more money to spend on other "stuff" that churns the economy?

[fjlip]

The more farmers grow/raise, the MORE the rest of the CHAIN makes on volume. We will always be encouraged to produce MORE for less, so that others make BILLIONS.

[bucket]

Grain production in this area and on our farm has more than doubled in past 40 years.
See periodic comment that this hurts our profitability and is a bad thing.
Some want to take us back to way of life, smaller and diversified farm operations.
This would be bad, our profitability depends on accepting change.
Do not fall for the line that limiting production is a good idea.

Limiting production or capacity works for railways, graincos, fertilizer, oil companies/OPEC,


Continuing to produce more for less dollars per bushel....can you double your production per acre in the next 40 years again?

[farmaholic]

In addition to producing cheap food staples/ingredients.....we get to dump an inordinate amount of money into the economy to do it!

Aren't we special! You're welcome! Thanks for all the support.

[GDR]

Grain production in this area and on our farm has more than doubled in past 40 years.
See periodic comment that this hurts our profitability and is a bad thing.
Some want to take us back to way of life, smaller and diversified farm operations.
This would be bad, our profitability depends on accepting change.
Do not fall for the line that limiting production is a good idea.

I think you are kinda missing the point of the supply demand logic here. The point is to drive the profit margin up not make less money. I for one would be happier to make twice as much per acre and farm only half as much. Not lazy, just cant always do things as well as I would like because there just aren't enough hours in the day to get it all done. I also think too many of us dont spend enough time enjoying family and other things in life because of time constraints. We need to farm more and more acres to justify the capital expenses, just a vicious circle.

The mixed farm comment, pretty easy to make arguments on either side of that debate and not sure there is a right answer for everyone. I'm very diversified which works well for me in most ways other than my previous comment on time shortages because there just isnt anytime of year where its slow.

[GDR]

I can see how lots of areas have doubled production with advances in no till and fert/chem and limiting sumerfallow. Cant say the same thing here as moisture never usually limiting, likely 20% increase in yields in the same time frame. But land and machinery has gone up maybe 1500% so not sure it's a better deal.

[FarmJunkie]

Farmers are greedy. End of story. If farmers would run there business based on returns expected like other industry’s they wouldn’t try to produce products at or just above the cost of production. We do it to ourselves and then bitch and complain about everything that happens that’s out of our control. Most businesses build into the cost of production the expectation of cost over runs but farmers seems to forget the unexpected then cry about it after the fact. How can u change that mentality. The sad part is that the industry knows this and they use this against the farmer as a weakness and exploit it. Drop the mic.

[Horse]

40% increase in yields ?? How much did you grow and how much did you buy ???

[Austrian Economics]

Farmers are a victim of decades of falling interest rates as much as any entrepreneur. As interest rates are artificially forced downward due to central bank manipulation of the currency, asset prices must rise proportionately. Profit margins will be relentlessly crushed until the next collapse in interest rates ensues. The cycle simply repeats until all the capital in the economy is consumed.

Governments don't see things this way as the collapse in interest rates allows them to borrow to buy votes seemingly with impunity. But the current crisis is causing an unprecedented cratering in tax revenue, and soon enough they will be looking for ways to fill the holes they have dug.

My prediction is that before long a "wealth tax" will be implemented on an individual's or a business' net worth, and that includes farmers. The tax will be on the value of capital assets whether they have been disposed of or not. Governments will soon be thirsting for capital to be consumed and will vilify those who still possess any.

I expect that these clowns will also slash or eliminate the capital gains exemption on farmland sales.