by argyle » Tue 02 Jun 2009, 02:35:45
The problem with farming is that although prices of foods (wheat, corn, soy, take your pick) are getting more expensive in the stores, they ussually only see a very small share of that increase (if any at all).
Where I'm from (Belgium) the price that is paid to the farmers for their goods has stayed the same (or a very slight increase) for many years.. I believe that 1kg of pigmeat is still around the same price as it was 15 years ago for the farmer while the price of feedstock, vet costs, construction, contracted fieldwork,.. have all increased.
They are always pushed to be more efficient as their costs rise while the price of their produces stays the same (+-). Always being pushed to grow bigger, as it's the only way they can spread over their fixed costs to a larger acreage, heads of cattle, liters of milk produced, and thus have a slightly higher profit margin. When my grandfather farmed, he and his family could live on soley of about 20 head of cattle, while my dad needed to have atleast 120-160 and 1000 pigs to have enough incommings.
Last year when there was a lot of inflation in foods, most of it went to the wholesellers, retailers, repackagers, etc and not to the farmers.They only just earned slightly bit more. Now that grains, corns, etc have come down in prices (paid to the farmers), you don't see the stuff in the stores become cheaper now do you?
My father has a "saying about it". When he was young, you could with the same amount of money buy a barrel of salted herring, or you could buy yourself an amount of eggs (either directly from the farmer or fishhall). Nowadays with the money of those same amount of eggs a farmer would earn, you can't even afford you a single herring with it bought in the store!
"People should not be afraid of their governments. Governments should be afraid of their people."