Wed, 23 Apr 2008

Price Volatility Adds to Worry On U.S. Farms

I'm not sure I understand what the problem is here: I've read alot about this in the past couple of days, and I just don't get it. Anybody care to try and explain?

Wild swings in crop futures are damaging mechanisms that are supposed to cushion the jolts of farming.

(link) [New York Times]

/Agriculture | 2 writebacks | permanent link

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On 4/23/2008 08:34:09
Analemma wrote

I can see how this could be a problem, especially for a small farmer. If you don't have a reasonable estimate of your income, it's hard to be able to budget, or to know whether you can afford a new piece of equipment (or your mortgage payment). I had a geology professor in college who grew up on a farm and loved the farm life, but wanted to make certain he could support a family even in bad years. So he taught as his day job for a steady paycheck, and had 20 acres where he experimented with various organic farming practices and raised much of his family's food. Price volatility means that not only do you have natural concerns to worry about, but even if you have a good harvest you can't plan ahead of time. Personally, I like having a salaried income that I can use for budgeting, and dropping out of school so that I could get a steady job was one of the better decisions I made.

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On 5/4/2008 19:24:38
Walter Jeffries wrote

The whole crop futures game is simply gambling by people in business suits and offices. It has nothing to do with small farmers. Crop futures does not affect our farm in the slightest. It's just like the stock market, a racket. So some speculators lost their shirts recently on crop futures. It has nothing to do with reality or farming. Just funny money.

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