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rah is offline rah
Apolyton Prince of Moderators, Master of Reason
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Jan 1970
time: 23:18
  Old Post 29-03-2002 00:26
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quote:
Originally posted by Saint Marcus
No

Why target key election states if the EU just doesn't like this particular decision made by Bush? Those states are specifically targetted as a statement that they don't want Bush to get re-elected.




Then the EU isn't as smart as you think. There is way too much time between now and his reelection for this to linger in voter's minds. We're talking short attention span americans here.

RAH

Kyle is offline Kyle
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  Old Post 29-03-2002 00:27
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quote:
Originally posted by faded glory



I think you pulled this out of your ass. TIME didnt report anything. But EU is considering further retaliation. However, such a move would be considered Undermining the Bush administration. Not a good idea. And could lead to further retalations on are side. Oh and your over your heads. USA Market is the biggest one on Earth. It hurts you enormously when we place restrictions on your imports. So dont push your luck.



The targeted retaliation has been reported in various places.

DinoDoc is offline DinoDoc
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  Old Post 29-03-2002 00:29
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quote:
Originally posted by Kyle
The targeted retaliation has been reported in various places.


Strangely enough, the BBC can not confirm if that is true or not. You'd think that they would be among the first to know.

faded glory is offline faded glory
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  Old Post 29-03-2002 00:32
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retaliation yes.

But not against states that voted for bush. and if that is true. I suggest the EU serouisly reconsider. If Bush gets word of that. Oh you are in trouble.....

Oh EU steel is already hurting I heard.

DinoDoc is offline DinoDoc
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  Old Post 29-03-2002 00:36
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BTW, can someone explain to me where the EU gets off whining about the tariffs & subsidies in other countries considering thier own utter disregard for the values of free trade?

Colon is offline Colon
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  Old Post 29-03-2002 00:37
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When the US imposed trade sanctions on imports from the EU as a result of WTO-ruling on banana imports in the EU, it targeted goods from specific EU countries deemed to be most obstinate.
Likewise, the European Commission targeted goods from certain US states deemed most responsible for the rise of the steel import tariffs. (it's yours to make up whether the European Commission was successful)

Faded Glory, "So dont push your luck."

As a result of the FSC-ruling by the WTO, the EU has the right to impose $4 billions in trade sanctions on imports from the US. So don't push your luck.

Kyle is offline Kyle
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  Old Post 29-03-2002 00:40
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quote:
Originally posted by faded glory
retaliation yes.

But not against states that voted for bush. and if that is true. I suggest the EU serouisly reconsider. If Bush gets word of that. Oh you are in trouble.....

Oh EU steel is already hurting I heard.



It's been reported, but I think it may be assumptions based on the products; like citris fruits (Florida) and Harley Davidson motorcyles, etc.

faded glory is offline faded glory
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  Old Post 29-03-2002 00:41
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ugh....colon, ass, anus.....whatever your name



Yes you have the right to retaliate. But dont go overboard, we can hurt you many...many...more times than you can hurt us. You do realize that?

DanS is offline DanS
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  Old Post 29-03-2002 00:54 Visit DanS's homepage!
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I agree with GP on this. The US shouldn't have done it, but Europe's actions vindicate the protectionists' principle--a capitulation to the "dumping" argument. Europe is saying "it's all right if it happens to them, but not alright if it happens to us."

If we would have kept it to a good, clean trade war, then maybe Europe would have been able to promote the free trade it loves.

FG: We can only hurt them only slightly more than they can hurt us.

Gatekeeper is offline Gatekeeper
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  Old Post 29-03-2002 01:20 Visit Gatekeeper's homepage!
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Everyone:

What good is "free trade" if it leads to the inability of a nation(s) to produce something natively that it was able to prior to free trade? Do nations genuinely want to become dependent on an outside foreign source of a product(s) that they themselves were once able to produce?

I enjoy the low prices that come about because of efficiency that free trade can encourage. But there are hidden price tags behind the low prices. For instance, I'd rather pay a higher price at the supermarket for food if it meant it was produced at a local, state or national level rather than coming from some overseas source, a source that could be cut off in certain circumstances.

Hmm ... is any of this making sense?

Gatekeeper

Colon is offline Colon
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  Old Post 29-03-2002 01:21
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FG,
Considering the many billions of net-purchases of US assets by EU corporations and citizens the past few years, and the many hundreds of billions of US assets they currently posses, the US should be hard-pressed to be careful as well

Dan,
The hypocrisy on all sides in trade-issues is truly gargantuan and the latest EC measures are contra-productive and unnecessary but I think that you can also say that they aren't as random and a little more thought out. Steel imports into the EU only face a higher tariff when the volume reaches a level of 10% above the average of the past 3 years and countries who's exports make up only a small share of EU's steel imports are except.

TCO is offline TCO
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  Old Post 29-03-2002 01:30
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quote:
Originally posted by Gatekeeper
Everyone:

What good is "free trade" if it leads to the inability of a nation(s) to produce something natively that it was able to prior to free trade? Do nations genuinely want to become dependent on an outside foreign source of a product(s) that they themselves were once able to produce?

I enjoy the low prices that come about because of efficiency that free trade can encourage. But there are hidden price tags behind the low prices. For instance, I'd rather pay a higher price at the supermarket for food if it meant it was produced at a local, state or national level rather than coming from some overseas source, a source that could be cut off in certain circumstances.

Hmm ... is any of this making sense?

Gatekeeper


1. Often having free trade means that a country is less susceptible to disruptions in supply...since there are more sources.

2. If disruptions from foriegn sources are likely/often than some domestic capacity will remain in the amrketplace to take advantage of these times. (Oil wells good example here).

3. Would you rather have a more volatile price of bread that was cheaper as an average or a set price that was always high?

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  Old Post 29-03-2002 01:42 Visit Gatekeeper's homepage!
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quote:
Originally posted by GP
3. Would you rather have a more volatile price of bread that was cheaper as an average or a set price that was always high?


I might lean towards the latter ... it depends, of course, on how "high" is. I've seen loaves of bread going anywhere from 29 cents to $1.79.

My outlook might be colored a bit by the fact that I live in the bread basket (pun intended), and can see how low prices (going on four years now) are having a detrimental effect on farmers. Not all of which, I might add, can be laid at the feet of free trade. I know that many European nations' ag policies certainly aren't free trade-oriented, though. They might say the same of us, though.

Gatekeeper

DanS is offline DanS
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Colon: I guess I don't see much value in comparing hypocricies.

If Europe just went with the retaliatory measures, then that actually would have given Bush more choices. It would have given him a political excuse to drop the tarrifs or to do a more conciliatory deal (after all the yelling was done ). That's what I was hoping for.

This would have been able to stanch the momentum for tarrifs and subsidies. I don't like where the US is heading with farm subsidies.

Colon is offline Colon
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  Old Post 29-03-2002 02:10
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Gatekeeper, that’s why there are trade agreements and organisation like NAFTA and WTO, they’re made not just to ensure a level playing field but also that no disruptions occur, by regulating countries’ trade policies and providing tools to punish those who break the rules.
Of course it’s possible that exports from a certain country halt because the country is plunged into mayhem but such country usually don’t make up a large share of international trade (and certainly not those in half-finished and finished goods).

Regarding agriculture, it’s one of the sectors where market-forces are least allowed to function properly.

Dan, sorry if you got that impression but I wasn’t comparing trying to compare hypocrisies.

Faeelin is offline Faeelin
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  Old Post 29-03-2002 02:11
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Dan: I know, we're almost becoming like Europe in regards to them.

This is a pretty low blow on Europe's part, and a stupid one at that. It's one thing to retaliate, it's another to escalate. When they target specific states like that, it does appear that it's designed to hurt the American president's chances. Therefore, it is meddling in American politics.

Gatekeeper is offline Gatekeeper
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  Old Post 29-03-2002 02:23 Visit Gatekeeper's homepage!
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DanS, Colon:

I can assure you that farmers don't relish relying on the whims of Uncle Sam for their lifeblood, either. Low commodity prices — for years now, not months — consolidation creating ag giants such as ADM, ConAgra and Smithfield Foods, and the increasing "serfing" of farmers to land once owned by them (but now owned by corporations) have all combined to devastate farmers to a degree not seen since the early and mid-1980s.

The ironic thing is that *somebody* is making money somewhere because there really haven't been food price decreases among cereals, meats and whatnot. These prices keep rising (or staying steady sometimes) while the prices farmers get for their produce and animals regularly decreases. Heck, I remember when soybeans were fetching more than $6 a bushel; now its lucky to break the $4 mark.

I know one thing that local and state-level ag folks are doing where I live that could help: value-added agriculture. But it may be a case of too little, too late for many farmers.

Colon, is anything like this happening in Europe?

Gatekeeper

DanS is offline DanS
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Gatekeeper: I know it's painful. But that's how inefficiencies are wrung out of the economy. If XYZ corporation making widgets can't compete on price or features, it goes bankrupt, to be replaced by a sustainable model. Farming should be no different.

Gatekeeper is offline Gatekeeper
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  Old Post 29-03-2002 02:41 Visit Gatekeeper's homepage!
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quote:
Originally posted by DanS
Gatekeeper: I know it's painful. But that's how inefficiencies are wrung out of the economy. If XYZ corporation making widgets can't compete on price or features, it goes bankrupt, to be replaced by a sustainable model. Farming should be no different.


Yes, it is painful. Particularly when farmers have followed the sage advice of the economic know-it-alls for years and this is what they get.

"Get larger! It's the only way you can stay in business!" So that's exactly what farmers did — they expanded their acreages, buying out smaller ("inefficient") farmers. We went from have three to four farmers per quarter-section of land to one farmer owning all the land in the quarter-section.

"Plant more crops! It's the only way you can keep up!" So the farmers did that, too, with their newly-acquired extra acreage. That did nothing but flood the market with comoodities, animals and whatnot that the buyers suddenly didn't need, or didn't buy for various reasons.

"Modernize! Modernize!" So that's what farmers did. They went out and pumped hundreds of millions of dollars into the national economy by buying $150,000 tractors, $75,000 discers and so on. But with flucuating crop/animal prices, one couldn't count on being able to pay off the loans taken out to buy the equipment which was necessary to properly maintain these growing mega-farms/dairies/ranches.

"Use fertilizers! Ward off bugs and land exhaustion!" So that's what they did. They also rotated crops, let fields lay fallow and moved herds about .

I could go on for a while longer, but time is of the essence right now. Suffice to say, it seems to me that U.S. farmers — and others abroad, I bet — have followed the economic advice given to them over the decades and, in the end, it doesn't seem to helped as much as it should have.

Perhaps it's a no-win situation. But perhaps value-added ag and the willingness of people like me to buy from locally-owned facilities can give farmers a new lease on life. Then Washington can use those 10-year $67 billion aid packages elsewhere. But the farmers need government action taken in a form other than handing out money: help is needed to keep the corporations in check. Sen. Tim Johnson's meat-labeling and two-week ownership limitation on livestock for the big packers is that sort of non-monetary help.

Gatekeeper

TCO is offline TCO
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  Old Post 29-03-2002 02:45
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Gatekeeper. DanS is right about inefficiencies. This is the way the free market works.

You raise a seperate but interesting point about the lower commododt prices not transferring to customers. If so, the right solution is probably anti-trust action against Tyson, et. al. This won't really help farmers though. It will help consumers.

DanS is offline DanS
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Gatekeeper: So you would propose subsidizing all industries where the players make bad business decisions?

I guess I don't see any difference between the dot com going bankrupt versus the family farmer. If they are not viable business models, they need to be replaced. And ASAP.

Lancer is offline Lancer
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  Old Post 29-03-2002 02:54
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Guess I'll start drinking more juice...

USA! USA! USA!

(Where is good 'ol Derek when you need him)

Colon is offline Colon
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  Old Post 29-03-2002 03:02
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AFAIK margins aren't fat anywhere along the food-chain, not even amongst the big food-processing corps, they get their return through selling in large volumes. Subsidies aren't the solution, on the contrary, they often aggravate the situation by causing oversupply.

TCO is offline TCO
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  Old Post 29-03-2002 03:15
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Colon, have you got any good analysis or articles on this issue (don't stay mad at me, buddy! ).

I have heard these claims that the commodoty price is dropping and the consumer price isn't. Wonder where the moeny is going. Or if this claim is even true.

Saint Marcus is offline Saint Marcus
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quote:
I think you pulled this out of your ass. TIME didnt report anything.


Time magazine

April 1, 2002

Cover: Can the Catholic Church save itself?

Page 23

Section: Indicators

Headline: Swing in his steps

quote: E.U. Trade Commissioner Pascal Lamy is preparing a $2.1 billion "hit list" of tariffs to strike back at U.S. President Bush's steel duties. The tariffs would hit goods in the hotly-contested "swing states" that Bush will need to win the next election.


asshole

Saint Marcus is offline Saint Marcus
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  Old Post 29-03-2002 05:08 Visit Saint Marcus's homepage!
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quote:
we can hurt you many...many...more times than you can hurt us. You do realize that?


doubtful

quote:
If Bush gets word of that. Oh you are in trouble.....


yeah. sure. whatever. there's little bush can do frankly.

Sharpe is offline Sharpe
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  Old Post 29-03-2002 07:49
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Bush has to be very careful, although I am not sure that he realizes that fully.

Before 9/11 there were signs that he was beginning to irritate many of the other members of the western alliance with his Kyoto stance, the ABM treaty, drilling for oil in Alaska, and his refusal to sign certain other treaties and his whole "unilaterial" viewpoint.

With the recent trade actions against Canada for lumber and steel against most of the world (and the EU still seems to be annoyed about the bananas), that irritation may come back or get even worse.

For instance, Bush and his hardliner cabinet clearly want to attack Iraq... but most of the western alliance doesn't want to.

If Bush resumes his pre 9/11 path of unlateralism policies, he may lead to a split in the western alliance or possibly its destruction.

The strength of the US rests on 4 equal pillars:
its strong economy, its strong military, its strong alliances and the lack of a power or group of nations equal to its power.

The amount of disputes seems to be growing and the items that are being disputed are becoming more important. Steel is still a backbone of any economy, lumber is an important part of Canadian exports, even the anti-trust case against Microsoft (which Bush seems to have sided with Microsoft) is important.

Yes the US can hurt the EU badly, but the EU can hurt the US equally, perhaps more so politically. Either side though would have at best a pryrric victory.

Wow, long-winded post!

Gatekeeper is offline Gatekeeper
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  Old Post 29-03-2002 12:50 Visit Gatekeeper's homepage!
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quote:
Originally posted by DanS
Gatekeeper: So you would propose subsidizing all industries where the players make bad business decisions?


No.

Most workers know how much they're going to get in a given check, and some have union protection, which offers even more security. Farmers don't have that protection. They don't have a minimum wage. They can't tell the three or so big corporations that control the markets what they will pay to the farmers for crops and animals. In a word, farmers have very little control over the decisions that can make or break their ties to the land. The only way they can try to earn an income is by planting crops and raising animals. Tough luck if the one corporation in town ain't offering enough to even cover the costs of planting/raising. America needs its cheap food and a free conscious, after all. Hell, if that means idling all the ag land in America and paving it over with developments, then so be it. We can always get our food "more efficiently" from other places, right?

Farmers were told to get larger, to modernize, to grow more crops in order to keep up. They did so and now some have the gall to say they made bad business decisions? Jesus. They listened to those who were supposedly "in the know," and it sure as hell hasn't turned out as expected. Maybe all the experts should be forced to walk beans for a weak or rogue corn for a day in order to get a little "in the field" experience to back up their advice.

The American farmer is among the most efficient in the world, and here we are having to bail them out because they can't make enough money to even cover the cost of planting the crop. There's something wrong when being efficient still isn't enough to make a buck.

Maybe you like on-sale 29-cent loaves of bread, but I can't help but think that while the consumer has an idea of what his or her bread will cost for a week, the farmer can't be sure of crop prices from the AM to the PM of a given day.

Perhaps they should dump their milk in the ditches, turn their crops into bales and kill the pigs, chickens and cattle. They might actually make a buck while sending a jolt into the industrial food supply chain. They used to do that sort of thing from time-to-time, but I haven't heard of it for at least 24 or so years now.

There's got to be some sort of middle ground. Right now things are unbalanced terribly in the favor of big companies. Perhaps value-added ag efforts is the ticket out of this whole morass. I guess only time will tell.

quote:
I guess I don't see any difference between the dot com going bankrupt versus the family farmer. If they are not viable business models, they need to be replaced. And ASAP.


I cannot agree. I've laid out some of my thoughts in regards to why above. Show me an inefficient, lazy, money-grubbing farmer and I'll show you a beloved IRS bureaucrat .

Gatekeeper

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The ag sector seems to be not working along free market principles due to subsidies. I don't know where the money is going to, but farming in developed countries are killing farming in developing countries that opened their markets and draining their foreign exchange reservers as they now need to import food.

This is not a pretty picture.

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  Old Post 29-03-2002 13:08
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quote:
Originally posted by Gatekeeper


No.

Most workers know how much they're going to get in a given check, and some have union protection, which offers even more security. Farmers don't have that protection. They don't have a minimum wage. They can't tell the three or so big corporations that control the markets what they will pay to the farmers for crops and animals. In a word, farmers have very little control over the decisions that can make or break their ties to the land. The only way they can try to earn an income is by planting crops and raising animals. Tough luck if the one corporation in town ain't offering enough to even cover the costs of planting/raising. America needs its cheap food and a free conscious, after all. Hell, if that means idling all the ag land in America and paving it over with developments, then so be it. We can always get our food "more efficiently" from other places, right?

Farmers were told to get larger, to modernize, to grow more crops in order to keep up. They did so and now some have the gall to say they made bad business decisions? Jesus. They listened to those who were supposedly "in the know," and it sure as hell hasn't turned out as expected. Maybe all the experts should be forced to walk beans for a weak or rogue corn for a day in order to get a little "in the field" experience to back up their advice.

The American farmer is among the most efficient in the world, and here we are having to bail them out because they can't make enough money to even cover the cost of planting the crop. There's something wrong when being efficient still isn't enough to make a buck.

Maybe you like on-sale 29-cent loaves of bread, but I can't help but think that while the consumer has an idea of what his or her bread will cost for a week, the farmer can't be sure of crop prices from the AM to the PM of a given day.

Perhaps they should dump their milk in the ditches, turn their crops into bales and kill the pigs, chickens and cattle. They might actually make a buck while sending a jolt into the industrial food supply chain. They used to do that sort of thing from time-to-time, but I haven't heard of it for at least 24 or so years now.

There's got to be some sort of middle ground. Right now things are unbalanced terribly in the favor of big companies. Perhaps value-added ag efforts is the ticket out of this whole morass. I guess only time will tell.



I cannot agree. I've laid out some of my thoughts in regards to why above. Show me an inefficient, lazy, money-grubbing farmer and I'll show you a beloved IRS bureaucrat .

Gatekeeper


Gatekeeper, I'm probably wasting my time...but let's try.

1. Farmers have no "right" to a dependable income. If they want the satisfaction that comes from owning a business, they have to deal with the risks. 50% of new businesses fail in the first 3 years. A farm is a small business. If farmers want more dependable paychecks, they should sell out and sharecrop or become ag workers for larger corps.

2. Americans have a right to try to get ag products as cheap as possible. Same with any other product. The consumer doesn't owe the farmer anything. It is a business transaction.

3. I really don't care if farmers got bad advice or if they have to change business models to succeed. They are the owners. It's their responsability to make decisions. In other industries, they wouldn't even have the advice to consider.

4. If they are truly efficient, they will stay in business. It is natural for the weaker farmers to go out of business. That is the way of the world. Same thing happens with restaurants all the time. Don't worry some farmers will always remain to meet the demand from the market.

5. If they collude to raise prices, they will face anti-trust action. Not everybody goes out of business. Concentrate on being better than the next guy, not on fixing prices.

6. You may have a point regarding large food processors. I would like more data on this. But even if this problem is fixed, it will do little for farmers. Consumers will reap the reward, not farmers.

One last point: I've known some very wealthy farmers. Nobody owes them anything...

 
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