Three Biggest Myths

We all joke about the government agent who said I am from the government and I am here to help you.  We always laugh when this is said.

There are three big lies being told in Washington and in many so called farm organizations and commodity groups.  They are:  Lower price support rate (ccc loan rates) increase exports and thus increase farm profits.  Higher price supports result in over production, and lower price supports cause lower production and bring supply in balance with demand.

There is no credible analytical or historical evidence to prove any of these myths to be true.  While, there is hard evidence to prove that they are not true.  Several ag economists upon review of concise summarized history of important and interconnected statistics affecting U.S. crop farmers extending back to the mid-70’s has proven without a doubt that all three myths are not true.

One example:  Since 1979, the price support for corn has been lowered over 60% while at the same time period exports have remained at about 1.9 billion bushels.  During the same time period, the price paid to farmers has dropped 60% and corn production increased almost 50%.  These are proven facts.

Farming is not like other segments of the economy.  When prices are lower farmers do not reduce production; often they will increase production to maintain cash flow.  Thus putting more acres into production instead of less.

We must have a management program that matched production with needs or usage and sets the support price (ccc loan rate) at the comprehensive cost of production.  No other approach will sustain agriculture production in rural American and keep production agriculture in the hands of the family farmers.

AMERICA NEEDS PARITY