(click on image to enlarge)
Here is another article I find disturbing: http://www.bloomberg.com/news/2010-11-29/milk-glut-ruins-u-s-dairy-farm-profits-as-48-corn-rally-boosts-feed-cost.html
The article states: "Dairy farmers expanded herds following the 70 percent jump in prices to a record in 2007, just before the U.S. began its longest recession since before World War II and unemployment rose to the highest level in a quarter century." Did all dairy farmers expand herds in 2007? No. Could a competent rural sociologist shed some light on who did and who did not expand production?
Furthermore, As the above graph plainly shows, milk production had been climbing fairly steadily for several years, including years of low milk price.
We had to expand to spend all the money we made in 2007 and 2008. What would you pick? Paying taxes or build some new barns and add cows? Is this criminal?
ReplyDeleteIts that train of thought that accelerates the roller coaster we are on. There is no shame in making money and paying taxes( though I agree to send it to Washington IS a waste). To be on this merrygoround of constant expansion in many cases doesn't make any sense either. The most successful expansion is to do it from within with no added debt, very few expand this way.DWCovert ps. JOHN could you also put up a graph which shows domestic disappearence? that might show a little more complete picture.
ReplyDeleteAre you kidding me?
ReplyDeletehttp://www.usda.gov/wps/portal/usda/!ut/p/c4/04_SB8K8xLLM9MSSzPy8xBz9CP0os_gAC9-wMJ8QY0MDpxBDA09nXw9DFxcXQ-cAA_2CbEdFAEUOjoE!/?contentidonly=true&contentid=2010%2F11%2F0624.xml