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Is Beef a Heavily Subsidized Product
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<blockquote data-quote="bball" data-source="post: 1456681" data-attributes="member: 23752"><p>Random example here: </p><p>Beef prices in Jan 1990 were $78.70. So 600# =$472.20</p><p></p><p>One US dollar in 1990 had the same buying power as $1.91 today. Almost twice the value or buying power as today.</p><p></p><p>January 2017 was $119. So 600# = $714.00</p><p></p><p>So, just to keep up with the beef prices of 1990, Jan beef should have averaged $150.32(not $119) rendering the value of the 600 lber $901.92 instead of $714.00 (again these are Jan 2017 averages, not today's price) That's $187.92 less than the 1990 value of the animal. </p><p></p><p>Long story short, the beef industry doesn't keep up with the inflation rate of the US dollar..for many reasons.</p><p></p><p>Even in a record year like 2015, when Jan beef averaged $166, thats only $16 above the 1990 average beef value after inflation is calculated. A record year means a $16 gain from 25 years prior. I'd say things are tilted out of balance. </p><p>If my thinking or calculating is wrong, I would appreciate the correction.</p><p></p><p>Here's one more thing to consider: say we use todays price of $150 and get that $900, we realize that is essentially the same price as 1990 after inflation is figured. Yet you have to cover all your inputs with essentially half the dollars due to the same inflation. Every year that goes by, a beef producer has to do more with less valuable dollars. Does that make sense to anyone?</p></blockquote><p></p>
[QUOTE="bball, post: 1456681, member: 23752"] Random example here: Beef prices in Jan 1990 were $78.70. So 600# =$472.20 One US dollar in 1990 had the same buying power as $1.91 today. Almost twice the value or buying power as today. January 2017 was $119. So 600# = $714.00 So, just to keep up with the beef prices of 1990, Jan beef should have averaged $150.32(not $119) rendering the value of the 600 lber $901.92 instead of $714.00 (again these are Jan 2017 averages, not today's price) That's $187.92 less than the 1990 value of the animal. Long story short, the beef industry doesn't keep up with the inflation rate of the US dollar..for many reasons. Even in a record year like 2015, when Jan beef averaged $166, thats only $16 above the 1990 average beef value after inflation is calculated. A record year means a $16 gain from 25 years prior. I'd say things are tilted out of balance. If my thinking or calculating is wrong, I would appreciate the correction. Here's one more thing to consider: say we use todays price of $150 and get that $900, we realize that is essentially the same price as 1990 after inflation is figured. Yet you have to cover all your inputs with essentially half the dollars due to the same inflation. Every year that goes by, a beef producer has to do more with less valuable dollars. Does that make sense to anyone? [/QUOTE]
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