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  • From: "Ploughshare" <gjbrever AT midwestinfo.net>
  • To: <market-farming AT lists.ibiblio.org>
  • Subject: [Market-farming] Farm Income
  • Date: Fri, 28 Mar 2008 12:54:37 -0500

Bill,
Are you familiar with Ken Meter's work? http://www.crcworks.org/rural.html
His studies follow the impact which subsidies have had on exporting wealth out our rural communities. The growth of the Ethanol industry today and it's impact on farm income is very similar to the hyperinflated bubble of the 1970's. During that time prices were way up due to a small period of time where there was a shortage of grain in the Soviet Union and that market opened up to the U.S. During this time when prices were way up, farmers in the U.S. started borrowing huge amounts of money from the banks who were more than eager to lend to them. This lead to the collapse of many farmers in the 1980s when prices leveled off again (because, of course the Soviet Union could grow their own grain) and these farmers found themselves strapped with too much debt.
If you have never read Ken Meter's studies I recommend them.
He actually spoke last year at Collin Peterson's local food dinner in Morris. It's unfortunate that Peterson isn't advised in his decision making by such minds as Ken's instead of the CEO's of Cargill and ADM.
--Gary Brever





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