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Farmers are getting squeezed on both ends
Posted on: April 29, 2021 at 10:34:48 CT
Knucklehead MU
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Increasing ownership concentration in corporate agriculture is squeezing farmers on the input side (buying the seeds, equipment and operating supplies needed to produce a crop) and on the output side (i.e. selling their products).
Basically the small operators are getting slowly squeezed out of the business. Forcing operators to get big or get out. The strategy used by big Ag is to deflect blame for this onto government.
Another huge factor is the value of the dollar. A strong dollar hurts farmers because their inputs are priced in dollars while commodity prices are set on global markets. Current dollar weakness is currently helping farmers by driving up prices (Soybeans up to $15). The finance industry favors a strong dollar.
Edited by Knucklehead at 10:37:16 on 04/29/21
Basically the small operators are getting slowly squeezed out of the business. Forcing operators to get big or get out. The strategy used by big Ag is to deflect blame for this onto government.
Another huge factor is the value of the dollar. A strong dollar hurts farmers because their inputs are priced in dollars while commodity prices are set on global markets. Current dollar weakness is currently helping farmers by driving up prices (Soybeans up to $15). The finance industry favors a strong dollar.
Edited by Knucklehead at 10:37:16 on 04/29/21
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Farmers are getting squeezed on both ends - Knucklehead MU - 4/29 10:34:48