The profit incentive has generated euphoria among many farmers. Until the events of the last two years destroyed the peaceful image of many farmers, they believed that the money they could earn was endless. But some who have invested more and more money in their desire to make big profits are now heavily in debt.
Thus, the incentive to profit can lead to catastrophic results on a global scale.
Does the intermediary make a profit?
If rising prices don't make the farmer rich, who is he? Many farmers and consumers refer to "The Middleman". What is that?
The term is used to describe everyone involved in the image of food, from the farmer's departure to his purchase at the supermarket. Farmers are blaming packers, shippers, supermarket operators and others for rising food prices. However, each of these groups claims that, like farmers, they are victims of inflation and that if their costs go up, they must increase their prices. All they want is an honest win to stay in business. In other words, they are only part of the system.
Farmers also blame market speculators and big food companies for the higher prices. What is the value of these taxes?
Typically, when a farmer has an important food product like wheat for sale, they don't sell it directly to a bakery or to someone else who actually uses it. Rather, it is taken to a local hoist, where it is at least temporarily purchased and stored. The price paid to the farmer in the elevator is determined by the “commodity market”.
The notice board shows how much grain (and other goods) is going to elevators across the country so potential buyers know what is for sale. How to receive orders from buyers. The availability of containers in the United States in terms of buyers' demand for that supply, it determines the price the farmer gets for his grain.
Speculators buy commodities at a certain price, just like anyone can buy stocks on the stock exchange. The speculator does not really buy wheat; You won't get it, just wait for the market price to go up. So sell and earn. These men, say the farmers, although not directly related to the cultivation of food, are the main contributors to rising food costs.
But speculators remind farmers that they too are just part of the system and just want to make a fair profit. You are risking a lot every time you invest. They point out that prices don't always go up and that when they go down, speculators can suffer devastating losses.
In either case, the speculator says, someone must own the grain after it leaves the farmer's hands and before it reaches the actual user. If the speculator did not risk his money to pay for what he would "store" grain, he would indicate that someone else should. Therefore, someone should be paid what the speculator earns.
What about the large grain companies? Are they manipulating the market, i. H. Are you conspiring to make huge profits? Of course, there is always the possibility that someone is controlling the market in one way or another for their own benefit. But chance is not a test. Like the farmer and the rest of the “middlemen,” the grain companies pretend that all they want is a decent profit. And that's why they sell most of the grain exported from the United States to "rich" countries, not "poor"! The poor cannot afford it.
America's huge for-profit agricultural system, even if partially successful, cannot continue to function indefinitely. It's like a puppy chasing its tail. Since everyone wants and needs to make money along the way with the current economic system, food does not reach those who cannot afford it or who let someone buy it.
The St. Louis Globe Democrat then concludes, “The food landscape is made up of farmers on the one hand, grocery buyers on the other, and a confusing maze called middlemen. It's almost impossible to identify a villain, if there is one. ""
"All together and what have you got?" asks the Harper newspaper. His response: "A recipe for a system on the brink of collapse".
Of course, we need a better system.
Brilliantly outlined