WI the Price of Fuel puts the avarage Farmer out of bussines

[Ward]

What if the price of fuel puts the avager farmer out of buissines and no one was able to pick up the slack .
I just filled up my tanks at the farm on friday it cost me just under $1700 for just under 1000 gals of fuel .
At this time of year I will run about 600 gal of fuel in less than a week .
Alltogether I've spent just under $100,000 to put the crops in so far .
Now with the fuel cost what would happen if I went under as well as my neigbors .
Let us say that over 80% of the small farmers in the US and Canada went out of Business this Spring how would this affect the world .
The crops in the Fields are also left to rot in the fall who would pick up the slack of food .
How long would it take before there are riots around the world .

[David S Poepoe]

I would think that:

A) A big agricorp (or whatever you call it) buys out the average farmer and runs things (for better or worse depending on your point of view). At least then if 80% of the small farmers go out of business they will only be missed at local farmers markets. Agribusiness rides to the rescue.

B) Convert the engines of farm equipment to run on ethanol or something. The use of MTBEs is poisoning ground water at the expense of clean air (stealing from Peter to pay Paul). Give us a reason to raise corn prices start using ethanol.

C) The Government could up its subsides to farmers, tho thats hardly fair. Bad businesses should be allowed to fail. No government buyouts. The tobacco farmer should plant something else or have them get a new job. In the scheme of things aren't they 'enablers' - if they didn't raise tobacco then we wouldn't have so many people dying of smoking. We sue the cigarette makers but not their suppliers.

D) Horse and plow.

E) Outsource to India. Its all the rage.

F) Victory Gardens. More local supply of vegetables and grains. Sure its more expensive.

G) Electric engines. Sure its expensive, but doesn't the farmer pass all their expenses onto us anyway?

H) Collectives. It didn't work in the Soviet Union tho.


Riots in order parts of the world - well, since when did the average American citizen worry about food riots in Nigeria? I'm sure that there will be plenty of farmers in other countries, long effected by cheap American grain, who will be able to take up the slack.

[Anthony Appleyard]

Back to using horses and oxen for hauling.

[DuQuense]

G) Electric engines. Sure its expensive, but doesn't the farmer pass all their expenses onto us anyway?

No they Don't, In fact the Small famers inability to pass on his prices is one of the reasons that small Farmers are failing.



Let us say that over 80% of the small farmers in the US and Canada went out of Business

Given that only 2~3% of the population are Farmers this would mean that that there would be no one but Agu-business left. Compare this to Europes 30% or Japans 40%, Where the Gov't surrports the small Farmers for Social Reasons [wants to preserve the Rural lifestyle]

[NapoleonXIV]

Given that only 2~3% of the population are Farmers this would mean that that there would be no one but Agu-business left. Compare this to Europes 30% or Japans 40%, Where the Gov't surrports the small Farmers for Social Reasons [wants to preserve the Rural lifestyle]

And isn't that why most of the world buys most of its food from the US? America is often called the "Persian Gulf of Food" yes?? but this is due mainly to the truly huge farms where large economies of scale are fully operational as I understand it. Well run small farms are engines of change and innovation in agriculture as small businesses are in every type of industry, but it is ADM and their kind that truly feeds the world.

[Grimm Reaper]

Smaller farmers band together into 'Granger' type organizations and rapidly expand their number as the big agri-businesses(often for tax breaks) fall apart and more land comes on the market. Within 20 years farmers are back up to 8-9% of the population and enjoying a higher income relative to what they make now, nor is the general public as disrespectful after a few years unable to count on all the foods they like best. Probably some of the more esoteric foods cease to be available as farmers emphasize the staples. Perhaps we see ostrich farming on the rise? Also some farm products such as rice in California cease to be available.

[DuQuense]

The Problem is that with modern methods You only need 2-3% of the Population to produce the food. This is why Europes Farms are in such trouble.

Of course, Dispite the retoric from all the Politicians, The Manufactuary sector is reaching the same point [ie <5%].