Is Beef a Heavily Subsidized Product

[bball]

Every year that goes by, a beef producer has to do more with less valuable dollars. Does that make sense to anyone?

Inflation is a complicated thing. I think the biggest issue with inflation calculations is which index containing what basket of items is used. Most "real" indexes come in higher than the government CPI. It would be interesting to see an inflation index that included farm equipment and land.

Apparently we produce too much beef, or else folks are substituting white meat. Either way - - beef producers have profitability issues just like most other food commodities. Is there any reason to think that will change? I think we are on our own here.

For folks that are not into the marketing arts - - I think some of the work Greg Judy has done is an extreme example of increasing productivity and substituting lower cost inputs.

In nature, everything seeks equilibrium. In economics, it seems to be the opposite, but I haven't studied economics past high school. The American food production 'system' has enough govt interference, for the safety and security of the masses, that free market doesn't exist as it should. There is culpability for all involved.

I will Google Greg Judy.

 

[cowgirl8]

We do pretty good. But then again, our land was paid for years ago. I don't know how anyone would make it today with how much land cost now. It was tough when land was under 400 an acre. Calf prices aren't much more than they were last century. But the cost of land, equipment and such is so many xs what it was back then also. So, I don't know how anyone makes money on cattle if they are just starting out.

 

[Dave]

My beef is subsidized by me (day job) and by you (via tax breaks I get on losses to offset taxes on the day job). I appreciate all of you kicking in .

The grain guys have a proven plan - - more CRP and more ethanol. :nod:

Did you are sign up for CRP too?

I think CRP is on the way out and a lot of people here who have land in CRP agree with me. And when that happens there will be a bunch of pasture available to rent. People who have had ground in CRP for 20 years no longer have equipment and the price of wheat won't cover purchasing equipment.
I am surrounded by people who make a living on cattle. They have a lot more than 20-30 cows. They buy and sell by semi loads whether it is selling cattle, or buying minerals, grain, hay, or any other inputs. You never see them at the local farm store.

 

[Stocker Steve]

Every grain growing state, and the bird hunters, want to raise the CRP acres cap.