Had the sanctions been lifted in 1996, Mr. Ray generously calculates U.S. wheat, cotton, corn, soybean and rice prices, between then and 2000, would have fallen a collective 35 percent rather than the 37 percent they did fall. This is hardly the solution to the problem. This means, on average, farmers were 36 percent farther behind in 1999 than in 1990-1992. We now know the U.S. taxpayer is paying over 50 percent of net farm income. The reality of current Freedom to Farm policy is similar to that of fish in a barrel.
Survival depends on being fed larger, on-going portions.
Pouring more money into spark plugs when the problem is a severely cracked block can not possibly be a sound solution to this problem. We are on shaky economic ground when 50 percent of net farm income depends on taxpayer support supporting some of the highest cash rents and land values ever. That is right. Grain and soybean prices are so low that survival for many is doubtful but cash rents and land values are among the highest ever. We know it is hard to justify high rents and high land values with low grain and soybean prices.