Bait And Switch

A certain lawyer or group of lawyers is trolling Iowa farmers for a class action lawsuit against a seed/biotech company. They are alleging that this company released corn seed into the American seed corn market that wasn’t approved for export to China. When traces of the offending corn turned up in samples taken from incoming American feed grain shipments at the Chinese ports the Chinese officials refused entry of the shipments into the country. The trolls further contend that this refusal resulted in a collapsing market price for corn in America. They are suing for a substantial amount of money.

But …….

Given the fact that it is an established practice of Chinese importers to cancel sales after markets decline only to buy new contracts at the new lower price any and all actions made by these same offices are suspect at best. Oftentimes these Chinese cancellations are announced while markets are open. Markets dominated by high frequency trading algorithmic computers programed to react to any and all market associated “headlines” read off of newswires services at lightning fast reaction speeds. Helping drive prices further in the desired direction.

China is sitting on six billion bushels of their own corn. Roughly half of what we can produce annually on a consistent basis. They are one of America’s newest and smallest corn clients. They are where soybeans originated. They learned long ago how hard on the soil growing soybeans are. Add in the fact that corn yields three to four times as many tons per acre and you have a good argument to grow corn at home and import the beans. Pound for pound you’re importing four times as many acres on the same ship. Whether they ever will become a major customer for America’s corn farmer is doubtful for these very basic economic reasons. I think markets are astute enough to keep that in account.

The main reason the feed grain markets have collapsed is none other than our very own EPA’s ethanol debacle. When Congress orders 18 billion gallons of ethanol be produced and blended into the country’s transportation fuels the market sits straight up and takes note. When the market takes note every farmer in the world takes note, production is stimulated. When Alabama’s EPA director says it taint happening the markets also respond, in an equal and opposite direction. Trust me, farmers took note. Dropping Navigable from Congress’s Clean Water Act is not enough of a distraction to make producers forget what EPA’s ethanol debacle has done to feed grain markets.

But nice try.

Cc

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Farm N

For over thirty years now.  Sooner or later I should know how to do it. Farm magazines and TV shows are heavy on the legacy aspect of it. They want farmers to think about retiring. If the commodity markets keep dropping we may have no choice. You would think that once the prices moved down below the cost of production they would stop falling. You would be wrong. Deflation is alive and well. The central banks have supposedly been fighting deflation for six years. I’m pretty sure they lost the battle. They may have jacked up the price of land. But I’m pretty sure the EPA had more to do with that than the Fed’s helicopter money drops. Just like the EPA torpedoed the price of land by cutting the mandated amounts of corn alcohol they force the country to supply to the market. Anyone who didn’t see that one coming was a wide eyed optimist. The Gov giveth and the Gov taketh away.

After nearly one hundred years of  money (and market) manipulation what the government takes away the most is farmers. There aren’t many left. That there are more lawyers in this country than farmers is quite telling. Anymore a farmer needs a lawyer just to keep up with all the new rules and regulations mandated by government. We should have never let lawyers hold an office of government in this country. A lot of our problems in America stem from the lack of diligence in keeping lawyers out of the statehouse. Our congress passed and the states ratified an amendment to the constitution (the original thirteenth amendment) keeping them out but the war of 1812 baited America away from it. Had we followed through this country would be far different from the collective reduction it has become. Two hundred years ago the average native American was treated with more respect than the average American citizen is treated with today.  The largest percentage of incarcerated convicts in the world is our new legacy. The gulag is alive and well.

Farming for the government is the legacy of the twentieth century. As soon as they take away one form of manipulation they quickly create another. Ethanol is just their latest boat rocker. They offer safe harbor and then beat your boat to pieces at the pier. They should observe a no wake policy as they troll this harbor’s waters. Like the sirens of old they lure you in from the sea only to be dashed on the rocks they knew were always there by the shore. Then with sweet little lies they try to keep you there. A ship is safest far out to sea. Man is safest far away from other men. Collective reductions should be avoided at all times and in all ways. Golem are impossible to slay, only their excessive greed for power can take them down into the fires that created them. That day cannot be far away. It’s always darkest right before the dawn. Once the moon goes down. The chirping of crickets gives way to the sound of the songbirds. Who eat those dark lords of the night for breakfast. So lets sing. Lets sing our way through the twenty first century. We’ll sing the song of solo man.

Cc

While you listen to this …….

Watch this …….

 

 

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