clubcalve
Well-known member
- Joined
- Jun 21, 2008
- Messages
- 810
Here in wisconsin it cost more for people to pay the sale barn to sell jersey bull calves than what they are bringing. The milk price is down and lots of people are going out of business.
Dairy buyout
- Thread starter ROAD WARRIOR
- Start date
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Jill
Well-known member
What is it Garybob said, how dairy calves go, so goes the economy not far behind.
knabe
Well-known member
garybob for president.
This reminds me quite a bit of what happened with wheat in my part of ND last year.
Wheat prices reached an all time high because the crop got hit early with drought, hail, and poor production. - Simple economics - demand was higher than supply so the price went to prices no one had ever seen. I grew up with $3-4 per bushel. The price peaked at $22/bushel.
Well all the farmers saw the high wheat prices and began tearing up every available piece of land to plant more wheat. Suddenly there's an abundance of wheat and prices came down to $5-6/bushel - again, simple economics - increase the supply to meet demand and the price will reach equilibrium.
Will the same happen with the dairy buyout? Cows are eliminated to decrease production, which will result in prices increasing. Farmers see the incresaed prices and decide that they need more cows producing to take full advtange, this again increasing the supply and lowering prices.
And around and around we go :
Wheat prices reached an all time high because the crop got hit early with drought, hail, and poor production. - Simple economics - demand was higher than supply so the price went to prices no one had ever seen. I grew up with $3-4 per bushel. The price peaked at $22/bushel.
Well all the farmers saw the high wheat prices and began tearing up every available piece of land to plant more wheat. Suddenly there's an abundance of wheat and prices came down to $5-6/bushel - again, simple economics - increase the supply to meet demand and the price will reach equilibrium.
Will the same happen with the dairy buyout? Cows are eliminated to decrease production, which will result in prices increasing. Farmers see the incresaed prices and decide that they need more cows producing to take full advtange, this again increasing the supply and lowering prices.
And around and around we go :
shortyjock89
Well-known member
Jill said:
GB sure did hit the nail on the head. He is a pretty smart ole boy.
garybob
Well-known member
<party> <party> <party>Took Y'uns long enough to figger it out! <party> <party> <party>I was starting to feel like Susan Lucci!Olson Family Shorthorns said:
Just kidding.GB
shortyjock89
Well-known member
Well heck GB, what did you expect out of a buncha darn Yanks?
How have you been doin?
How have you been doin?
garybob
Well-known member
Pretty good.
How 'bout yourself?
Coming to Springfield MO on March 21st? I plan on making it this year.
GB
How 'bout yourself?
Coming to Springfield MO on March 21st? I plan on making it this year.
GB
shortyjock89
Well-known member
I've been doin good, lots of cattle shows and School and the little lady to keep me occupied.
I'm not sure that I'll make it down, but if we do, I'l be sure to tell ya.
I'm not sure that I'll make it down, but if we do, I'l be sure to tell ya.
garybob
Well-known member
Gotta go! Library's aboout to close.
GB
GB
Jill
Well-known member
See garybob, I did hear you on a few things (clapping)
