Soy classification changes

[beechcreekcandles]

Soy pricing will be fluctuating in prices now because the Agricultural department of our great nation decided to classify soy as a commodity, meaning that the farmers will now get paid as the market dictates demand. Before, soy was normally a set price with only minor price increases on a yearly or bi-annually time frame. But because China, and other countries are importing our soy. our government once again saw the "cash cow" coming from the fields, so to speak, and decided they wanted their hand in it too....just like everything else. The only advantage I see is that our prices for buying the soy may also fluctuate, but don't get too excited....I don't think any of our suppliers will change the pricing as much as they could/should.

I only hope this doesn't discourage small business people like ourselves to quit....that so called American dream still exists...just might be harder to achieve. My father always says....your highest goal is only just out of reach...stretch more and you will grasp it.

[islandgirl]

The American dream still exists...just might be harder to achieve. My father always says....your highest goal is only just out of reach...stretch more and you will grasp it.

Well said!!!

Here is another quote to keep us all motivated...

Many of life's failures are people who did not realize how close they were to success when they gave up.

- Thomas Edison

[kandlekrazy]

Thanks for that update, good info. I agree, I don't think the mfg's will reduce their prices much; therefore, our suppliers won't be able to. I just read something in an online news article that said most of the soy growers switched to 1/2 corn last year so I'm wondering if the lower supply will just keep driving prices up anyway.

[Abbiepql]

Knock me down...I have always thought soybeans were a commodity? Interesting.

[FarmerJill]

So soy wasn't a commodity before? I'd appreciate a link because I can't wrap my head around that one. I've read the definitions put out by the Department of Ag and they didn't list individual crops - just the specific requirements of what makes up an agricultural commodity.

, meaning that the farmers will now get paid as the market dictates demand.

Yep. Welcome to the wonderful world of farming. I've never raised a crop where the price wasn't based on demand so don't understand why soy should be any different. And despite our unhappiness with the price right now, this is all nothing but simple economics - the same principles that apply to our candle businesses. Create a demand and business booms, along with price increases. Lose the demand and we can hardly give a candle away. Right now soy is booming.

[Stella1952]

I've never raised a crop where the price wasn't based on demand so don't understand why soy should be any different.

The government has been manipulating the market prices for a long time - paying farmers to grow or not to grow certain crops by way of subsidies to artificially manipulate the crop prices.

Now farmers are being paid to grow crops for fuel instead of for food, and those crops can be traded right alongside barrels of oil, not bushels of potatoes. I WISH that the farming industry would get up on its hind legs and defy growing crops for fuel but unfortunately the power in farming is held by subsidiaries of the oil companies... begin to see the strategy of the game now?

The very concept of wheat having to be IMPORTED into this country instead of exported makes my hair curl. Why? Because farmers are growing corn for ethanol instead of wheat for bread. Biofuels are hydrocarbon based and nearly as bad for our environment as is petroleum-based fuels. It takes a buttload of arable land (which COULD be producing food crops) to get enough crop to make a few barrels of ethanol or biodiesel. This is NOT ANY kind of a solution to our energy problems - it is a short-term way for greedheads to make a buttload of money at the expense of our country and those we used to serve with the food we formerly exported. People need to WAKE UP and understand just exactly what it means when the news reports that we IMPORTED more food than we EXPORTED... Just go to the grocery store and know that the prices you are paying now may easily represent tomorrow's "good ol' days." :undecided

[FarmerJill]

... begin to see the strategy of the game now? :undecided

Uh, no. Not in the same light you do. What some would call "artificially manipulating crop prices", others would call stabilizing or sustaining the agricultural community. You can put it in as bad or good of terms as you want. But even with price supports, any fluctuating price like we're seeing today still has to do with supply and demand, so I repeat....I've never raised a crop where the price wasn't based on demand. It's just that basic no matter how much anybody wants to lose that concept inside railings about ethanol, government policies, conspiracies, importing food, or evil oil companies. High economic growth in world markets, coupled with bad crop weather in places like Argentina and a worldwide search for alternatives to oil, have created a vortex for high prices. Supply. Demand. Yeah, I feel the pain of paying for a high-demand product, too, but the continued insistence on labeling somebody as the bad guy is baffling.

Just go to the grocery store and know that the prices you are paying now may easily represent tomorrow's "good ol' days." :undecided

You mean like the good ol' days when for every $3.37 you paid for a box of Cheerios, farmers received about 9 cents for the grain in it? Woohoo! Now it's up to about 33 cents.

[topofmurrayhill]

I can't believe the muddled thinking around here sometimes. First biofuels are touted by the greenies, but now they're a conspiracy between the the government and the oil companies. WTF?

Despite the example of Brazil achieving energy independence, I don't think biofuels are a great solution either--but you should at least understand the idea behind it. Burning biofuel releases carbon dioxide just as burning any fuel does, but growing the crops absorbs CO2 from the atmosphere. It's supposed to be a cycle.

Back when the soybean grower associations told you that renewable resources were good, and when they suggested you support the American farmer, y'all thought it was all Goodness and Truth. You didn't think marketing $$$ were being spent to manipulate you into adopting mediocre products. Suddenly you see renewable resources in demand and the farmers doing well and NOW you think it's all manipulation by nefarious plotters.

[Stella1952]

You mean like the good ol' days when for every $3.37 you paid for a box of Cheerios, farmers received about 9 cents for the grain in it?

In the good ol' days, cereal didn't cost $3.37 a box...:rolleyes2 Cheerios (Cheerioats) was invented in 1941 and wages were around 55¢/hour and a meal cost 25¢. Farmers provide ONE of the main raw ingredients that go into the food product. Manufacturing, packaging, advertising and distributing of that particular product are the lion's share of its retail cost. Given the difference in the price of raw materials and finished goods, 9¢ doesn't seem outlandish at all.

[FarmerJill]

In the good ol' days, cereal didn't cost $3.37 a box...:rolleyes2 Cheerios (Cheerioats) was invented in 1941 and wages were around 55¢/hour and a meal cost 25¢. Farmers provide ONE of the main raw ingredients that go into the food product. Manufacturing, packaging, advertising and distributing of that particular product are the lion's share of its retail cost. Given the difference in the price of raw materials and finished goods, 9¢ doesn't seem outlandish at all.

1941??? Don't know where that came from but back then the farmer's share was probably half a cent. Nine cents is a reference to the recent (VERY recent) past. And, sorry, but it is outlandish.

I like your post, Top, but now I think I gotta :lipsrseal on this thread. :smiley2:

[greensoaper]

This "greenie" and many, many others have never supported the biofuel movement.

A large portion of the earth's population lives on very little income, this same group gets a large portion of their daily nutrition from their cooking oils (mainly palm and soy). With the growing biofuel movement comes a major shift in the supply and demand scale, prices climb, and the poorest of the poor are the ones who suffer the most. People in places like Indonesia, where most palm is grown, won't be able to afford it anymore.

I don't know who ever thought that burning food for fuel was a good idea. Before anyone compares this with candle or soapmaking, there is a vast difference in the amount of oil needed to meet that demand and the amount needed to even begin to supplement petroleum use.

Biofuel is such a shortsighted idea. There are longterm solutions to be found. In the automotive industry focus should be on fuel efficiency, electric hybrids/full electrics, and yes...hydrogen power.

These are just the thoughts of a random greenie.

[pinetreecandles]

I just saw the US farm Report on TV while channel surfing and they were talking about soy and corn crops for this year. They mentioned that due to weather and cost to the farmers, this years crops where probably not going to meet the expected numbers. What does this mean, higher prices are still to come for both.

Like FramerJill said, "It's supply and demand". Far more demand than supply this year.

[Abbiepql]

I am learning new things on here, I always thought the majority of soybeans were used to feed animals? I need to study more!