Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
Is there some legal way farmers can write-off losses after a bad year on their taxes? (similar to how real estate companies do). The value of their farm may have depreciated . With the cost of steel (for farm equipment) rising and cash price of crops falling, this could result in big losses. Fuel for operating farm machinery / drying unsold crops (for storage) has also been inching up. A perfect storm.
On the brighter side: Is there an easy way for investors to grab up ag-related industries which must surely be depressed?
One of the most visible industries here [Wisconsin] is also in peril. Dairy farmers in the state known for its cheese are reeling from the president’s trade wars as over 1,200 farms have stopped milking cows. But when Mr. Trump said his administration’s repeal of the estate tax would help farmers, the crowd still cheered. [claim is totally false.] Tailoring his speech to Midwesterners on the shores of Lake Michigan, Mr. Trump trumpeted local victories. He praised armored vehicle manufacturers in Oshkosh, and told the crowd his administration was earmarking $300 million to the Great Lakes Restoration Initiative. (His budget calls for cutting the program by 90 percent this year.) “Now you finally have a president that is loyal to you,” Mr. Trump said, mostly reserving mockery for his prospective opponents.
Yeah - From what I’ve heard, the inheritance / estate tax has little (or no) impact on the traditional “family farm.” Farmers tend to be very conservative (tradition bound), also very independent. But they’re also very smart and business savvy (witness: @Ted).
So if the price action doesn’t improve soon there may be hell to pay.
Milk consumption has been declining steadily as more and more Americans and Europeans come to realize that animal fats can be harmful to our health and the raising of cattle harmful to the environment. For my part, I would not see conversions of Wisconsin dairy farms to plant-producing farms as a bad thing; it would entail disruptions akin to the loss of manual labor in manufacturing. The milk lobby has great clout in DC. It's no mistake that Domino's Pizza has allied its product with the "real" campaign promoting milk. Investors have been rewarded.
As a kid, I recall milk producers advertising the need for everyone to drink three glasses of Connecticut fresh milk per day. I no longer believe that. In the interests of full disclosure, I drink soy milk, and eat no dairy products or meat.
You can bet your sweet bottom that not a single mega milking farms (factories) has gone down the road !! I can remember when the NFO had their members dumping milk in an effort to raise the price of milk. Outlaw fertilizer , less bounty & the prices go up . Dairy farms can't afford to pay for high priced grain &cull herd & the price of milk goes up. Yes I know easier said than done !
@Ted: I hope that you appreciate all of the financial support from your fellow Americans. No problem bailing you out when things get tough, but it sure would be nice if "the government" gave the rest of us a hefty subsidy when things went wrong in our earning lives.
"Trump is absolutely right to have started this conflict. China has been manipulating trade rules for decades, putting millions of Americans out of work and placing China on a path to surpass the United States as a global power by mid-century. But wars, whether fought with guns or with tariffs, cost money and demand sacrifice. In this war, everyone has to pitch in and do their part — including soybean farmers."
But @Ted says: Let other Americans eat their hearts out... they're just jealous.
Comments
Here’s a related story: Winners and Losers in Trump’s Trade War
https://www.reuters.com/article/us-usa-trade-china-winners-losers-factbo/factbox-winners-and-losers-in-trumps-trade-war-with-china-idUSKCN1SC21R?feedType=RSS&feedName=businessNews
Regards,
Ted
https://www.macrotrends.net/2531/soybean-prices-historical-chart-data
On the brighter side: Is there an easy way for investors to grab up ag-related industries which must surely be depressed?
https://www.nytimes.com/2019/04/27/us/politics/trump-rally-green-bay.html
One of the most visible industries here [Wisconsin] is also in peril. Dairy farmers in the state known for its cheese are reeling from the president’s trade wars as over 1,200 farms have stopped milking cows. But when Mr. Trump said his administration’s repeal of the estate tax would help farmers, the crowd still cheered. [claim is totally false.]
Tailoring his speech to Midwesterners on the shores of Lake Michigan, Mr. Trump trumpeted local victories. He praised armored vehicle manufacturers in Oshkosh, and told the crowd his administration was earmarking $300 million to the Great Lakes Restoration Initiative. (His budget calls for cutting the program by 90 percent this year.)
“Now you finally have a president that is loyal to you,” Mr. Trump said, mostly reserving mockery for his prospective opponents.
wildest
https://www.nytimes.com/2019/04/26/us/politics/trump-trade-war-wisconsin-dairy.html
https://www.axios.com/trump-china-trade-war-states-industries-most-affected-20b6008d-16c6-410e-974d-a31400f1d2aa.html
So if the price action doesn’t improve soon there may be hell to pay.
As a kid, I recall milk producers advertising the need for everyone to drink three glasses of Connecticut fresh milk per day. I no longer believe that. In the interests of full disclosure, I drink soy milk, and eat no dairy products or meat.
has gone down the road !! I can remember when the NFO had their members dumping milk in an effort to raise the price of milk.
Outlaw fertilizer , less bounty & the prices go up . Dairy farms can't afford to pay for high priced grain &cull herd & the price of milk goes up. Yes I know easier said than done !
Eat more cheese, Derf
https://www.washingtonpost.com/opinions/2019/05/24/farmers-shouldnt-matter-more-than-rest-us/
Regards,
Ted
"Trump is absolutely right to have started this conflict. China has been manipulating trade rules for decades, putting millions of Americans out of work and placing China on a path to surpass the United States as a global power by mid-century. But wars, whether fought with guns or with tariffs, cost money and demand sacrifice. In this war, everyone has to pitch in and do their part — including soybean farmers."
But @Ted says: Let other Americans eat their hearts out... they're just jealous.
That's our Ted.
https://www.bloomberg.com/news/articles/2019-05-30/china-puts-u-s-soy-purchases-on-hold-as-tariff-war-escalates