Gov Takeover Of Family Farms

Do farmers really want price controls set by the U S Government? What else is Tom Vilsack really trying to do? From The Green Bay Press.

"Farmers may soon get reprieve from market swings
Union leaders say plan would keep market steady
By Nathan Phelps • nphelps@greenbaypressgazette.com • October 8, 2009



State and national farm union leaders say they agree with the U.S. Department of Agriculture's decision to restructure the dairy industry to take some of the sting out of cyclical markets that have buffeted farmers over the last decade." Farmers may soon get reprieve from market swings | greenbaypressgazette.com | Green Bay Press-Gazette

"The volatility has become so dramatic, and that's really, really challenging for everyone engaged in the industry," said Doug Caruso, president of the Wisconsin Farmers Union. "Hopefully what Secretary (Tom) Vilsack is alluding to is finding some mechanism to narrow (those swings)."

Milk prices paid to farmers are hanging around $12.50 per hundredweight, down from a peak of around $20 in summer 2008. Those high prices last year were offset in part by increased costs for farm products like fuel and fertilizer, which also spiked last year.

So in 2008 milk peaked at $20 per hundred weight and gasoline was over $4 gal. In 2009 milk is at $12.50 and gasoline today in my area $2.44 gal. So fertilizer was high in 2008. Is fertilizer today at 2008 prices or did it come down in 2009? I'm just asking. Do farmers want 2008 pricing or 2009 prices? Do they want higher or lower fuel and fertilizer costs? Do they want 2008 milk prices and 2009 fuel and fertilizer costs. I would want the latter if that's what the markets dictate but to be honest, it is not.

"We're never going to have a perfect steady line where the price is exactly right to compensate farmers for their costs and give them a reasonable return every day," Caruso said. "But we've got to find a way to get rid of the volatility because it's killing everybody in every part of the industry."

There it is, "got to find a way to get rid of the volatility", What does that really mean?

Vilsack said Monday the dairy industry needs to be restructured to avoid the cyclical ups and downs that have accelerated in the last decade. His comments came less than a week after Congress announced a $350 million dairy bailout.

When government mentions "restructured" and "dairy bailout" it can only equal government take over of the family farm.

National Farmers Union president Roger Johnson, a North Dakota farmer, said low prices offer an opportunity to look at restructure to the system.

"You can't realistically do anything with the low prices unless you're willing to acknowledge the high prices have to come down a bit as well," he said. "You don't get folks willing to sit down and talk about long-term structural changes when you are looking at $20 milk.

"When you're looking at $10 or $12 milk you have a whole different attitude."

Mr Johnson speaks some common sense but does he really want to go down the road to more government regulation, price fixing and oversight?

Johnson, in Wisconsin this week talking to farmers, met with the Green Bay Press-Gazette Editorial Board on Wednesday.

Wisconsin farmers received $6 less for their milk in August than one year ago, according to monthly figures from the Wisconsin field office of the National Agricultural Statistics Service. The September price is expected to increase 90 cents to $13.40 per hundredweight in Wisconsin and 70 cents to $12.70 nationally.

The break-even point for farmers is generally around $15 per hundredweight.

Someone help me here. Farmers received $6.00 less then the $20.00 high in 2008 and break even is $15, What exactly does everyone want. You can't have 2008 milk pricing with 2009 supply costs. So from the article, milk prices are only a $1.00 off on break even pricing?

Diminished prices have dogged dairy producers since late last year, and a number of area farmers have said they are doing what they can to weather the storm from cutting unnecessary costs and expenses to dipping into savings or seeking additional loans from banks.

Johnson said reform and aid to dairy farmers will be both short- and long-term.

So the rest of us are not cutting unnecessary expenses and dipping into our savings accounts? There he says it, "reform and aid to dairy farmers", gov will give farmers aid (money) and reform tells them how much they will be paid and tell farmers how to run their farms. Sounds like price fixing to me.

"Right now we're in a spot where we need some emergency assistance," he said. "Longer term it is (Vilsack) observing we need some significant restructuring in the industry … and that's going to take some additional time."

I agree some farmers need help (emergency assistance) but with the money will come "significant restructuring in the industry". What does that really mean.

Vilsack said he would like to get federal aid into farmers' hands as soon as possible. Under the deal announced last week, his department is responsible for distributing $290 million in direct support for dairy farmers. The other $60 million will cover purchases of surplus cheese and other dairy products to help raise prices. Food banks and other nutrition programs will get the goods.

"Food banks and other nutrition programs" is code for more government waste. Give the $60 mil to the farmers!

The secretary also said he expects the Agriculture Department to look at its price support and marketing programs to see if changes can be made to help stabilize prices.

— The Associated Press

"Help stabilize prices" means price fixing and gov take over. Vilsack and big brother will tell farmers how much they will be paid for milk. Be told how to run their farms, be told how much profit they can make, be told what they say and do or they take away the family farm. They want government owned dairy farms and this is the only way to get it, one small step at a time.

I am all for helping the farmers that are in need. I am not for government take over as is the way I see this. Hog wash you say! Didn't government dictate and take over GM and Chrysler? Is government trying to tell CEO's and people on wall street how much they can make? What profit they can have? Look how Cap and Tax will effect dairy farms if it gets passed. What will happen with doctors in socialized medicine? How much regulation does the family farm have from federal, state and local government now? If you take the money you will be told what to do and in the end will take over or shut down the family farm.

Do farmers really see what is happening? Fixing prices and regulation may be a short term fix but in the end government is simply looking for a way to take over a business that they think, "they know better". Let the free market run it's course. It may be difficult but eventually it will fix it self?

Again, let's help the farmers who need help today and let the markets take care of the rest.

Side note, for all those that voted for this administration and the politicians that run government, you are getting what you didn't ask for. Need to fix this starting in 2010!