Great post from a reader in southern IL about growing tobacco.
The attached photo makes is look like we are growing fenceposts in southernThanks for the input, Jason. I don't think I can add to the obvious, however. Any imagined link to farm programs and sufficient supply of commodities is nonsense.
Illinois.
(If you think we still dig holes to set post check this out -
The real story is we are growing burley tobacco in new areas. Last year the
government ended the great depression supply control program. Most growers
quit because the price fell, but many farmers are makeing more money than
ever.
There is a good political and economic statement in here somewhere if you
know how to say it right.
Additional money that actual producers made from the cartel was mostly paid
in rents to grandchildren of depression era farmers (often the grandchildren
are completly removed from the old farm). Real farmers could not take
advantage of economies of scale (thoes are being developed). Also it
appears that the corp was not grown in areas that are best suited to grow
tobacco. Tobacco production became an extremely inbreed business. U.S.
burley is of premium quality with worldwide demand. We could be exporting
instead of importing if it was not for supply controls.
The program ended with a buyout, which is quotaholders get paid so much a
year for so many years. If corn and soybean programs end I hope there will
be a buyout instead of a sudden end of the money when many people bought
land counting of government money to make the payments.
Several program crop farmers in souther Illinois (and a few other places)
are experimenting with tobacco patches. Even though I don't smoke and
encourage others not to, I find the tobacco crop interesting and thought you
might too if you know about it.
J.R. Hubele
We don't worry about a french-fry shortage for example - and potato farmers don't get a dime from the government.
For another perspective on tobacco growing, watch last week's segment on USFR.
3 comments:
I appreciate your feelings on the farm program and all of the related self destructing concessions and compromises we are willing to make in exchange for the quick and easy dollar. "Our" desire to moralize government subsidies is nothing more than an attempt by several generations to convert the successes of previous risk taking, enterprising generations into a feeling of God-given entitlement. We are selfish, spoiled egotists who actually think we deserve a guarantee from "our" government that our current social and economical status will be preserved, ultimately paid for by other economically viable industries. Everyone can't suck money like we do, somebody has to cough it up. Counter-cyclical is on the way! Smile everbody! We earned it!
Cornhead: Thanks for the feedback. We obviously agree, but I'm trying to lighten up some on my opposition to the "Gospel of Helplessness" that currently passes for farm policy.
Be sure to read next month's Top Producer Perspective (What if they passed a farm bill and it didn't matter?) I think the action of free individuals will continue to outfox rent-seeking behavior.
It would be great to get inside your head. Your worldview and governing philosophies are outstanding. I would love to own a little of that and not just be an observer. Your wisdom reflects a submission to Someone who truly knows. Keep up the great work.
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