I put a story about this announcement on our website's ag news page.
You might ck there once in a while, in a pinch, for my perspective on
big farm news.
http://www.northplattebulletin.com/NorthPlatteBulletin/stories/index.asp?pageID=29&storyID=4829
(My brother edits an alternative regional newspaper in Nebraska. I asked
him for his thoughts on the question Eugene Coyle asked on Monday.
The rest of his answer is below. This bears on the Thomas Frank
discussion
as well. Adrienne)
More details -
This "prosperity" is basically due to good corn prices ($3/bu) several
months ago, and record high cattle prices (80 cents to $1 a pound) for
more than a year, (TOTALLY UNPRECEDENTED) since the closing of the
Canadian border to beef imports.
Soybeans also hit a near record high of $8 a bushel for a few weeks last
spring, and hogs have been relatively good, and by relatively good I
mean the price has been at times as high as it was in the 1970s and 80s
when we raised them (50 cents a pound)... if you can believe that would
be considered "relatively good."
These days, cattle prices continue to be good, but will likely nosedive
when Bush opens the border again. Corn and soybeans have tanked
already.... to prices that were okay 20-50 years ago. ($1.80/bu corn,
$4.50/bu soybeans)
Also, the Congress gave farmers more tax cuts to encourage expansion...
raising the depreciation limit and income averaging provisions, for
instance. I don't know if "net farm income" by the WSJ definition is pre
or after tax, but there was certainly more money that could be plowed
into the farm after taxes.
The farmers and ranchers I talk to say they are spending the "extra"
income, if they cashed in a product to sell at the right time, to pay
down bills, mortgages and buy needed machinery and equipment... maybe a
new pickup and horse trailer, for instance. One hopes they are putting a
little away for rainy days ahead.
They are not prosperous.
Yes, you are on the right track. You gotta look at the circumstances...
My personal thought is Bush won the election because he sold himself as
a sincere, upright, religious man to people who care about that, and
successfully painted Kerry as wishy-washy.
The relatively good farm income and tax cuts didn't hurt him.
Thanks for caring!
George
