>
>AH but Dave a threat to reduce supply any time the price drops below a
>certain level ( if that level is realistic) could keep the players in
>the CBT from dropping that price quite to the level you are concerned
>about.
We didn't just threaten. CWT killed cows. Instead, we needed to use
tariffs and quotas to make sure imports no longer created an oversupply.
Bank loan officers loan to farms based upon many factors. Milk price
stability would be one screaming reason a loan would be repaid.
>
>
>Yes but the permitting process here in Indiana will be following the
>examples of other states east of the Mississippi soon.
Kind of shooting ourselves in the foot, similar to the US not building any
new oil refineries and limited oil exploration, then wondering how we
became dependant upon foreigners for oil. I have no problem with large
dairies provided they manage the manure.
>
>You sound defeated before you start. That's not the way we built this
>country nor how it will stay strong.
Dave, I'm a businessman above all else. I crunch the numbers, examine the
risks, look for payback upon investment. I enjoyed milking cows but no
matter how low I cut costs, taxes, fuel, labor, utilities all increase
while the milk price doesn't stay high enough, long enough to counter the
lows.
As the world has developed we are work more in a World economy We
>develop what we produce competitively and progress from there. New
>Zealand has worked their dairy system to compete well there and they
>added the level of marketing to even market for the world. Why are they
>selling US dry products to other countries?
>Dave Forgey
>
This is where the US needs to start thinking outside the box. The global
trade theory was based upon cheap oil to move products. We don't have
cheap oil anymore. Further, if NZ dairy prices paid to their farmers is
supposed to be an inspiration, it ain't. Global trade is a spiral down
process where everyone struggles for the privilage of being low bidder.
DFA-Fonterra are probably the worst thing to happen to farmers since Jimmy
Carter imposed the grain embargo.
Dave G.