Yellow Gold Report from the Upper MidWest

United States of America

Soon the giant combines will rolling across the vast praries of the Corn Belt of our great country. Although there was serious flooding in this area last June, some report that we are looking at a bumper crop. Please review this article based on U. S. Department of Agruculture reports:

Corn prices are down 36% from their June peak, but despite the U.S. government’s claims of a bumper corn crop this year, the current dip in corn prices is just a temporary abatement, as higher demand and a potentially smaller-than-estimated total crop are poised to push corn prices higher.
The U.S. Department of Agriculture (USDA) announced yesterday (Tuesday) that the U.S. corn crop could be the second largest in history, despite savage floods that decimated corn-producing regions in the Midwest.
The USDA increased its forecast for this year’s corn harvest to 12.3 billion bushels, up from last month’s estimate of 11.7 billion bushels as “perfect” weather and an aggressive planting schedules helped farmers to recover from June’s floods. If the crop comes in as estimated, it would be just 6% lower than last year’s all-time record crop of 13.1 billion bushels.
The increased forecast helped continue corn’s ease from an all-time high of almost $8 per bushel reached six weeks ago. Corn for December delivery gained 11 cents to settle at $5.28 per bushel in late afternoon trading on the Chicago Board of Trade. The USDA report projects that corn will average $5.40 a bushel for the marketing year that begins September 1.

Now to engage in some serious dicussion of the current political situation in the United States. I have heard those who should know that once they are elected anyone who makes over $250,000.00 can look forward to more taxation because these individuals are considered the rich.

Think with the Flower Child for a moment and look at some real facts:

• A tract of prime farm land on the Garnavillo Prarie of Iowa recently sold for $7500.00 an acre. The tract contained 125 acres which means the purchase price was $937,000.00. A mere $63,000.00 from one million dollars.
• Let us suppose that a Young Farmer starting out rents a major portion of his corn acreage from older retired farmers. He needs to cultivate corn on 1000 acres to be effective as regards machinery and his investment.
• Let us suppose that on this 1000 acres that the yield is 180 bushel per acre. That would be 180,000 bushels.
• Let us assume that the price based on the information reported above is $5.40 a bushel for a gross income of $9,720.000.00.
• The Flower Child is not in a situation to compute or even know the cost of production of a bushel of corn, but I think you can quickly ascertain that this small time farmer is generating quite a bit of gross income, well over the $250,000.00 that some say is a rich individual.
• We all know that diesel fuel is quite expensive. We all know that fertilizer to grow corn is quite expensive as well as the chemicals used to control the weeds and insects.

Yet we have individuals seeking high office who desire to tax the rich because they generate an income of over $250,000.00. I do not know if the higher taxes is on gross or net income as currently discussed, but I do know that young farmers also must obtain their own health insurance, unless they are fortunate enough to have a spouse working for an industry that provides such coverage.

Yet we have those seeking high office who desire to tax the rich. Maybe they have not been to a Publix, Kroger or Piggly Wiggly to know that food does not simply come in boxes. Someone, somewhere must produce the raw materials that grain processors use to manufacture our food stuffs. To tax them out of business is simply foolhardy.

Besides, most young farmers are also generating their own families. Everyone has heard how much it cost to raise a young person to the age of eighteen. One source I visited on the World Wide Web stated: Here's what you're likely to spend to raise a child:$234,694. I entered the age range from 0 to age 18 for a family with an annual income of $68,000.00 a year. The figure stated above was computed in 2006 dollars.

Again, I say, taxing these productive members of our society out of business is simply foolhardy at best and in my own personal opinion, simply stupid.