Dave G said-----
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.
In my opinion the killing of cows had better only be a short term fix
else we look bad. But it did quickly bring reality to processors as to
what dairymen could do. Several factors actually played a part. With the
Canadian border closed to import of heifers and New Zealand in a bad
year and most importantly our soft dollar, processors found that we
won't let even 1/2% of over production reduce our price.
Still, a consistent price breeds inefficiencies and actually bankers
today want to help producers who can be profitable even in tight times
(i.e.. 2002 & 2003) if they were profitable then, they will repay or
expand when things are good (2004 & maybe 2005)
Tariffs and Quotas take away our ability to be good and get better.
(i.e. I have friends from Canada who now milk cows in the US)
>
>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.
I have no problems with large dairies either, but many farmers do. (i.e.
a recent challenge for a new dairy permit in Indiana had lots of farmers
supporting the environmental groups position).
We need the current higher oil prices to force us to develop alternative
fuels. It will satisfy environmentalists and help farmers in the
process.
>
>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.
(i.e. read again what I said above)
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.
Those high oil prices are what will give us our advantage. It was the
highly valued US dollar that took jobs overseas and returned cheap
products that were produced on another country's low valued dollar. Now
Dave G. tell me where your really coming from, "the grain embargo was
bad" but you don't want any NZ dairy products here?????????
Dave Forgey
