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Explain to me the logic of bailing out farmers.

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    guitarwesguitarwes Posts: 9,242 ✭✭✭
    Rising costs:
    Fuel
    Fertilizer
    Labor (especially since the crackdowns of the illegals migrant workers)
    Seed
    Equipment maintainence
    Land lease
    Insurance

    Decreasing costs:
    crop prices

    The g'ment wants you to produce more for less while everything around you goes up in price while every year is pretty much a crapshoot on if mother nature is going to cooperate and let you come out on top. Unless a farm has been owned for generations and all your land and equipment is pretty much paid for OR you are owned by a corporate giant with deep pockets, it's a tough business from sun up to past sundown.
    @ Elite CNC Routing & Woodworks on Facebook. Check out my work.
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    As an example, without subsidies for milk, the price would be close to $10/gallon. I guess I wouldn't mind paying that personally, but this and other subsidies are a way to keep rising prices of food from causing runaway inflation. Once food rises, then wages must follow, otherwise there would be food riots like in 1857 New York. So, it is Congress' way of placating the masses. All Government's (except Somalia, I guess) has some form of subsidies for critical industries.


    Once food rises, i.e. milk 10 bucks...more people move to produce into the food market and the price comes down. Doing what we are doing keeps people out of the market and artificially inflates them. I think that's the real reason they do it, to keep the prices from crashing with oversupply.
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    BAJJERFANBAJJERFAN Posts: 31,017 ✭✭✭✭✭


    << <i>As an example, without subsidies for milk, the price would be close to $10/gallon. I guess I wouldn't mind paying that personally, but this and other subsidies are a way to keep rising prices of food from causing runaway inflation. Once food rises, then wages must follow, otherwise there would be food riots like in 1857 New York. So, it is Congress' way of placating the masses. All Government's (except Somalia, I guess) has some form of subsidies for critical industries.


    Once food rises, i.e. milk 10 bucks...more people move to produce into the food market and the price comes down. Doing what we are doing keeps people out of the market and artificially inflates them. I think that's the real reason they do it, to keep the prices from crashing with oversupply. >>



    Except that doesn't happen overnight. A farmer set up to grow corn or soybeans isn't going to drop that post haste and start a dairy operation. It also takes awhile to increase the size of a dairy herd. Years ago, the Government just bought the surplus.
    theknowitalltroll;
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    TwoSides2aCoinTwoSides2aCoin Posts: 44,035 ✭✭✭✭✭
    If the government doesn't bail out farmers there won't be enough food for dinner tonight, on the plates of all federal, state, & municipal workers who have President's day off today, along with every other national holiday which most of us, as well as farmers never get off.

    Nothing runs like Deere or a farmer in chains.

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    derrybderryb Posts: 36,378 ✭✭✭✭✭
    15 Reasons Why Your Food Prices Are About To Start Soaring

    I guess up until now they have just been "floating."

    Rampant currency debasement will be the most important investment trend of this decade, and it will devastate most people.
    - Nick Giambruno
    Buy dollar insurance now, because the policy will cost more as the dollar becomes worth less.

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    gsa1fangsa1fan Posts: 5,566 ✭✭✭
    Anyone raised on or around a farm should know.

    EVERY thing we eat has been genetically modified since domestication.

    Breeding & pollinating the best to the best. Strongest survive. That's why American farmers feed the world.

    Higher yields from less acreage planted. More muscle/meat per head livestock. Grow a market ready broiler chicken in less than 5 weeks.

    There's my 2 cents on all the "GMO" unenlightenedimage
    Avid collector of GSA's.
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    MGLICKERMGLICKER Posts: 7,995 ✭✭✭


    << <i>Anyone raised on or around a farm should know.

    EVERY thing we eat has been genetically modified since domestication.

    Breeding & pollinating the best to the best. Strongest survive. That's why American farmers feed the world.

    Higher yields from less acreage planted. More muscle/meat per head livestock. Grow a market ready broiler chicken in less than 5 weeks.

    There's my 2 cents on all the "GMO" unenlightenedimage >>



    ...and now we don't have to worry about drowning the crops with Monsanto Round up!
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    gsa1fangsa1fan Posts: 5,566 ✭✭✭
    Them Monsanto boy's pretty much paid for farm bill of 2014, I hear. Mega ton of $$ to lobbyist.
    Avid collector of GSA's.
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    gsa1fangsa1fan Posts: 5,566 ✭✭✭
    NM
    Avid collector of GSA's.
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    fishcookerfishcooker Posts: 3,446 ✭✭
    Grew up in a farm town. Most of the family is farmers. They don't need a "disaster" to go bankrupt. Where did that rumor come from? Uncle has bankrupted more than once. This last one was over $1.1 million. Government steps right in, though, and makes sure he stays in business. I have no sympathy for any of 'em. None.

    And secondly, I have to wonder... what if we took your same pro-handout/pro-UAW arguments and substituted the words "Oil Industry" and "gasoline"... How would the sob story about how everyone owes me a bailout sound, then?
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    WinPitcherWinPitcher Posts: 27,726 ✭✭✭


    << <i><< I like to eat. >> So that is the criteria for private businesses to receive handouts from Washington? >>






    Yes.


    I see your OP has strayed far from your original question, please don't assume I am referring to any other business other than farming.
    Good for you.
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    TwoSides2aCoinTwoSides2aCoin Posts: 44,035 ✭✭✭✭✭
    Illogic is the basis of the bail out. We are in debt, so the idea is to spread the poverty by a prime example, with government saying "it's okay if you can't manage, neither can we"

    In a couple more years they will convince us "YES WE CAN". .
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    BAJJERFANBAJJERFAN Posts: 31,017 ✭✭✭✭✭
    I can't speak for all of the various types of farmers, but I wonder how many here would like to start a new job April 1, but your boss says that you won't get a paycheck until November 1, if I've made money. If you don't have the resources now, you'l have to borrow to cover your everyday expenses.
    theknowitalltroll;
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    MGLICKERMGLICKER Posts: 7,995 ✭✭✭


    << <i>I can't speak for all of the various types of farmers, but I wonder how many here would like to start a new job April 1, but your boss says that you won't get a paycheck until November 1, if I've made money. If you don't have the resources now, you'l have to borrow to cover your everyday expenses. >>



    Like any business, one needs capitalization to succeed. Certainly a solvent farmer can obtain loans against their assets if needed. If not, sell to the next buy and become a farm hand or find another source of employment.
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    BAJJERFANBAJJERFAN Posts: 31,017 ✭✭✭✭✭
    All I'll say is that it's not a business I would care to get involved in.
    theknowitalltroll;
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    gsa1fangsa1fan Posts: 5,566 ✭✭✭
    I can not believe the American farmer is being attacked. It's the middle man & Commodities market that is making the $$ off crops. If big Agri business gets a hold of all farm land. Food will be like gasoline & Propane.
    Avid collector of GSA's.
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    MGLICKERMGLICKER Posts: 7,995 ✭✭✭


    << <i>I can not believe the American farmer is being attacked. >>



    I have great regard for American farmers, as I do for all honest business people. Just believe that the playing field should be level for all that seek the American dream. Some unfortunately, are more equal than the others.
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    I haven't read the entire thread, nor do I pretend to understand all the benefits to the Country.

    Just reporting a second hand fact. My son is a CPA that got a new client last year. He winters down South here in the Sunshine. He owns a farm/s in Minnesota. He reported over 200k last year for NOT farming part of his land. I'm sure someone can figure the benefits to America, but all I can wonder is how much of my tax ended up in his pocket.
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    percybpercyb Posts: 3,303 ✭✭✭
    Me too.
    "Poets are the unacknowledged legislators of the world." PBShelley
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    davewesendavewesen Posts: 5,951 ✭✭✭✭✭
    Production agriculture is not a simple business that should work on simple economics MGLICKER.

    The United States has a strong vested interest in keeping supply plentiful and cheap and homegrown in this country.

    The government itself consumes roughly 15% (probably more now with proliferation of SNAP cards) for military, schools, jails, aid to foreign countries.... and they get more bang for the buck when prices are kept low.

    How are prices kept low? By maintaining low price supports on many commodities, just enough to keep borderline operations around for another production cycle or year.
    Their goal is to always have enough for country consumption and not HAVE to rely on getting imports for survival. Imports that could be blocked, used as a weapon (think of grain embargo to Russia), or infected with things that can kill. Would you like to purchase counterfeit food products from China, and wonder why your hair is falling out and your kids are dying?

    Farm business's are not easily transportable. There are 100,000's of acres of prime agricultural dirt in San Joaquin Valley and Salinas Valley that just can not be moved or perform the same way in Detroit. Different areas of the country have different soils and weather that makes a slow learning curve. Top managers an California and Wisconsin can not just be swapped without some learning curve.

    Farm business's frequently have high overhead and specific equipment. Facilities with cement can not be cost effectively moved. Many operations have very high operating loans that are asset backed. If the assets become worthless, the banks loose hundreds of millions in default. Banks like Wells Fargo, Bank of America, Bank of the West, US Bank, Citibank all would be hurting.

    Many farm business's are frequently seasonal with only 1 growing season a year. Planning and arranging seeds and nutrients are easier made in advance. Some business's are multi-year with 5 or 10 years before any product produced. Fruits and berries come to mind. If 3/4's of the farmers in one area all of a sudden close up shop bankrupt, the others will not be able to fill the emptyness. Bringing investor money in would be hard, because most investors are leary of getting involved with a high overhead, low or negative margin business that they have no say in price received for product. Especially when the chance of bankrupcy is high - tax write-off from losses are only fun for awhile, especially if you can not stop those losses.

    So giving a few hundred million to keep California agriculture going makes more sense to me than pumping money to some other areas like ? ? I can name many such as rebuilding a city that is 15 feet below sea level after a hurricane.. or ...

    I like lettuce, and glad they can grow it in CA most of the year. I would not eat much if it cost $10 / head and comes from Australia or South America. I am not even sure how they would transport it. I like milk and have helped produce it for 40 years. Bst or rGH has been around and is not used near as much as it was in the past. Every grocery store has a labeled milk that is either BST free or Organic, so that milk has not been produced with that. From your misgivings over production agriculture, I am guessing your grow, raise or harvest your own food. If you do buy food, I recommend Organic labeled with USDA approvals. This has been produced without any of those things you mention, tastes much better, and frequently costs 2-3 times as much as the mass produced food.
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    MGLICKERMGLICKER Posts: 7,995 ✭✭✭


    << <i> I recommend Organic labeled with USDA approvals. This has been produced without any of those things you mention, tastes much better, and frequently costs 2-3 times as much as the mass produced food >>



    Been eating nearly 100% Organic food since 1980. I know that some is mislabeled and have discarded it if identified. Generally cost 50-100% more than the commercial stuff.
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    telephoto1telephoto1 Posts: 4,808 ✭✭✭✭✭


    << <i>I haven't read the entire thread, nor do I pretend to understand all the benefits to the Country.

    Just reporting a second hand fact. My son is a CPA that got a new client last year. He winters down South here in the Sunshine. He owns a farm/s in Minnesota. He reported over 200k last year for NOT farming part of his land. I'm sure someone can figure the benefits to America, but all I can wonder is how much of my tax ended up in his pocket. >>



    Multiply this guy by thousands. They aren't just farming the land; they're farming the government. I'd like to have someone write me a check for NOT selling coins, currency or bullion.
    I live in central IL and realize there are some small guys who have legit problems but believe me when I tell you they are in the minority. Most farmers around here are some of the biggest whiners that walk. They complain about how they don't make any money and how no one cares about the working man that feeds the nation (sound like union guys don't they?)...yet they can buy new combines, tractors, and trucks every year. Speaking of which, they will also go a couple hundred miles away to say, someplace in Iowa to buy equipment and sell the local implement dealer down the river for a few hundred bucks difference (usually the difference in sales tax) on a 5 or 6-digit deal...then complain when they can't get parts locally because the local guy's now out of business ("But I bought a used PTO from him eight years ago, so it's not like I didn't support him!"). They build new Morton buildings but keep the old wooden shed still standing even though it can't be used as it has no roof and leans over so far a good wind should blow it down...but won't demo it because they're still depreciating it. They might work hard in the spring and in the fall, but otherwise they manage to have plenty of time to sit around at the local mom and pop café first thing in the morning, buy one cup of coffee (free refills), shoot the bull for a couple of hours, go home for lunch, come back and get another coffee, go home for dinner...then they wonder why the local café closed up. And don't let anyone fool you; over and above the government welfare check they all have crop insurance that covers losses. We had a rainy season with flooding that forced some guys to replant corn...they were all wailing about how much money they'd lose...but thanks to modern hybrids the yield was still comparable with the previous year. Thus, they made the same money PLUS they got paid via crop insurance on the first failure (you didn't hear about that part though).

    Old joke...
    Q: Why don't farmers wear sneakers?
    A: Because seed companies don't give them away.


    RIP Mom- 1932-2012
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    cohodkcohodk Posts: 18,766 ✭✭✭✭✭
    Almost no one on this board could handle the job of being a farmer.
    Excuses are tools of the ignorant

    Knowledge is the enemy of fear

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    The government subsidizes the agriculture industry to keep food prices low. This is also the reason we have food stamps and other forms of government handouts. Which helps lower income people afford to eat well. Do they do this because the government cares about the poor? Hell no, but the government can't have the peasants questioning their lot in life. Hungry people do desperate things which leads to social and political unrest(see Venezuela). So the short answer is, the government bails out farmers to prevent revolutions. As far as I'm concerned it's a small price to pay to not see blood in the streets.
    Veni, Vidi, Vici
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    MGLICKERMGLICKER Posts: 7,995 ✭✭✭


    << <i>Almost no one on this board could handle the job of being a farmer. >>



    Do not sell the board members short. Many are employed in jobs that a farmer could not handle.
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    derrybderryb Posts: 36,378 ✭✭✭✭✭


    << <i>The government subsidizes the agriculture industry to keep food prices low. This is also the reason we have food stamps and other forms of government handouts. Which helps lower income people afford to eat well. Do they do this because the government cares about the poor? Hell no, but the government can't have the peasants questioning their lot in life. Hungry people do desperate things which leads to social and political unrest(see Venezuela). So the short answer is, the government bails out farmers to prevent revolutions. As far as I'm concerned it's a small price to pay to not see blood in the streets. >>


    In an effort to protect the farmer industry, paying a farmer not to plant is actually done to keep prices from falling.

    Rampant currency debasement will be the most important investment trend of this decade, and it will devastate most people.
    - Nick Giambruno
    Buy dollar insurance now, because the policy will cost more as the dollar becomes worth less.

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    DrBusterDrBuster Posts: 5,327 ✭✭✭✭✭


    << <i>Almost no one on this board could handle the job of being a farmer. >>



    Not anymore here, although my retirement plans might differ if I don't fall apart.

    The little farmer is out of anything that isn't local or organic driven at this point. Acreage in square counties min and you can enjoy the right fed subsidies.
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    cohodkcohodk Posts: 18,766 ✭✭✭✭✭


    << <i>

    << <i>Almost no one on this board could handle the job of being a farmer. >>



    Do not sell the board members short. Many are employed in jobs that a farmer could not handle. >>



    I think you are confusing the backyard gardener with a crop farmer tending 3 sections or a feed plot with 20,000 head of cattle or 100,000 chickens. Your may be right though in that a farmer would kill himself rather than sit behind a desk.
    Excuses are tools of the ignorant

    Knowledge is the enemy of fear

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    gsa1fangsa1fan Posts: 5,566 ✭✭✭


    << <i>

    << <i>Almost no one on this board could handle the job of being a farmer. >>



    Do not sell the board members short. Many are employed in jobs that a farmer could not handle. >>



    imageimage
    Avid collector of GSA's.
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    JustacommemanJustacommeman Posts: 22,847 ✭✭✭✭✭
    Jim Roger's has been advocating that people learn to farm for years.

    I wish I knew how to farm and it does seem daunting.

    MJ
    Walker Proof Digital Album
    Fellas, leave the tight pants to the ladies. If I can count the coins in your pockets you better use them to call a tailor. Stay thirsty my friends......
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    JustacommemanJustacommeman Posts: 22,847 ✭✭✭✭✭
    I don't trust our government. I never have. I'm a libertarian by nature. I went to a libertarian college. With that being said, I was for the auto bail out which run contrary to my beliefs. Why? I was born and raised in Detroit and I knew what a non bail out could potentially do to the entire region. Simply put the bail out was the best of the crappy options that were realistically on the table. Sometimes you just have to suck it up and live to fight another day. The auto bailout gamble worked even though it wasn't necessarily fair.

    The farming issue is not a slam dunk. Food for thought.

    MJ
    Walker Proof Digital Album
    Fellas, leave the tight pants to the ladies. If I can count the coins in your pockets you better use them to call a tailor. Stay thirsty my friends......
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    streeterstreeter Posts: 4,312 ✭✭✭✭✭
    News flash
    You like to eat? Well it's going to get 15-20% more expensive within the next 24 months - maybe 12 months.
    Have a nice day
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    BaleyBaley Posts: 22,659 ✭✭✭✭✭


    << <i>News flash
    You like to eat? Well it's going to get 15-20% more expensive within the next 24 months - maybe 12 months. >>



    Wai... wha? Because of the drought the west? Maybe the snow pack in the east will yield enough melt to water some additional midwest crops and make up some difference. Anyway, we're trying to arrange for some spring showers in Cali to help fill the reservoirs, stay tuned image

    Liberty: Parent of Science & Industry

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    BaleyBaley Posts: 22,659 ✭✭✭✭✭
    One more thing about that eastern and mountain snowpack....come summer, it will melt, and certain areas will flood. These disasters will come as a surprise to some... like they do most years..

    Liberty: Parent of Science & Industry

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    derrybderryb Posts: 36,378 ✭✭✭✭✭


    << <i>One more thing about that eastern and mountain snowpack....come summer, it will melt, and certain areas will flood. These disasters will come as a surprise to some... like they do most years.. >>


    Unfortunately it won't reach CA who is seeing their worst drought in many decades. They will be renaming the Rose Bowl to the Dust Bowl.

    Rampant currency debasement will be the most important investment trend of this decade, and it will devastate most people.
    - Nick Giambruno
    Buy dollar insurance now, because the policy will cost more as the dollar becomes worth less.

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    OperationButterOperationButter Posts: 1,672 ✭✭✭
    Good thing the FED is withholding water to the farmers

    What does CA provide to the rest of the country?

    99 percent of the artichokes

    -44 percent of asparagus

    -two-thirds of carrots

    -half of bell peppers

    -89 percent of cauliflower

    -94 percent of broccoli

    -95 percent of celery

    -85 percent of the leaf lettuce

    -79 percent of Romaine lettuce

    -71 percent of fresh spinach

    -a third of the fresh tomatoes

    -88 percent of lemons

    -74 percent of peaches

    -89 percent of strawberries

    -97 percent of fresh plums

    -96 percent of olives

    The list is much bigger than that. Go take a look.

    Page 9 and 10 for reference
    Gold is for savings. Fiat is for transactions.



    BST Transactions (as the seller): Collectall, GRANDAM, epcjimi1, wondercoin, jmski52, wheathoarder, jay1187, jdsueu, grote15, airplanenut, bigole
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    bronco2078bronco2078 Posts: 9,972 ✭✭✭✭✭



    They can't have any more Colorado river water. What will they cool the greens with in Phoenix in that 115 degree summer heat?

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    streeterstreeter Posts: 4,312 ✭✭✭✭✭
    I do not believe midwestern or eastern people understand the roll CA plays in their food situation. They certainly will if our drought
    continues.

    SoCal needs a good snowpack in the northern part of the state in order to provide hydroelectric power during peak usage summer temps. Unless we get significant snow in the next two months, there will be brown or blackouts this summer.

    The storms moving into NorCal Wed. & Fri. are vitally important.





    Have a nice day
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    telephoto1telephoto1 Posts: 4,808 ✭✭✭✭✭


    << <i>I think you are confusing the backyard gardener with a crop farmer tending 3 sections or a feed plot with 20,000 head of cattle or 100,000 chickens. Your may be right though in that a farmer would kill himself rather than sit behind a desk. >>



    Oh please. It's not like it's one guy with a tractor doing 3 sections. Large scale farms are like any other business in that they have their own staff- be it family, hired workers or both depending on size. Usually both.
    Some just sub out the work, let others farm the land and then do a profit split.

    RIP Mom- 1932-2012
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    cohodkcohodk Posts: 18,766 ✭✭✭✭✭
    Oh please image, can you manage that kind of business, birth a calf, fix a tractor, buck hay, shovel $hit?
    Excuses are tools of the ignorant

    Knowledge is the enemy of fear

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    derrybderryb Posts: 36,378 ✭✭✭✭✭
    its' not about what farmers do. It's about the country's dependency on what farmers do.

    Rampant currency debasement will be the most important investment trend of this decade, and it will devastate most people.
    - Nick Giambruno
    Buy dollar insurance now, because the policy will cost more as the dollar becomes worth less.

  • Options
    telephoto1telephoto1 Posts: 4,808 ✭✭✭✭✭


    << <i>Oh please image, can you manage that kind of business, birth a calf, fix a tractor, buck hay, shovel $hit? >>



    The answer to the last three is yes, I helped do all those things in my youth during a few summers. Add corn detasseling to that list also.

    RIP Mom- 1932-2012
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    BAJJERFANBAJJERFAN Posts: 31,017 ✭✭✭✭✭


    << <i>

    << <i>One more thing about that eastern and mountain snowpack....come summer, it will melt, and certain areas will flood. These disasters will come as a surprise to some... like they do most years.. >>


    Unfortunately it won't reach CA who is seeing their worst drought in many decades. They will be renaming the Rose Bowl to the Dust Bowl. >>



    I wonder who will be the first to advocate building a pipeline and sucking the Great Lakes dry! Not like someone hasn't already thought about it.
    theknowitalltroll;
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    MGLICKERMGLICKER Posts: 7,995 ✭✭✭


    << <i>Oh please image, can you manage that kind of business, birth a calf, fix a tractor, buck hay, shovel $hit? >>



    Friends owned race horses in the mid 70's. When I worked at the stable, I did similar work. More like raking though, than shoveling.

    More gratifying than sitting at a desk wondering if I could make payroll.
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    davewesendavewesen Posts: 5,951 ✭✭✭✭✭
    I am glad I am not a vegetarian - it is looking like the cost of salads is going to be going up.
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    cohodkcohodk Posts: 18,766 ✭✭✭✭✭
    More gratifying than sitting at a desk

    And this is probably why they get bailed out.
    Excuses are tools of the ignorant

    Knowledge is the enemy of fear

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    goldengolden Posts: 9,212 ✭✭✭✭✭


    << <i>Good thing the FED is withholding water to the farmers

    What does CA provide to the rest of the country?

    99 percent of the artichokes

    -44 percent of asparagus

    -two-thirds of carrots

    -half of bell peppers

    -89 percent of cauliflower

    -94 percent of broccoli

    -95 percent of celery

    -85 percent of the leaf lettuce

    -79 percent of Romaine lettuce

    -71 percent of fresh spinach

    -a third of the fresh tomatoes

    -88 percent of lemons

    -74 percent of peaches

    -89 percent of strawberries

    -97 percent of fresh plums

    -96 percent of olives

    The list is much bigger than that. Go take a look.

    Page 9 and 10 for reference >>



    Vegetables aren't real food. Vegetables are what real food eats.
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    image

    Successful BST deals with mustangt and jesbroken. Now EVERYTHING is for sale.

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    MGLICKERMGLICKER Posts: 7,995 ✭✭✭
    ^ Nice looking tomaters.
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