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Tractor Talk Discussion Forum

More proof Brazil is on the verge...

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farmerboybill

10-13-2004 19:57:38




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...of being a world class agricultural country.

We're all about to go out of business, boys.

Today, John Deere announced they will be building a plant in Brazil. Based on the fact that they have not announced that they will be cutting production in any other plant in any other country, they must assume there is a huge, untapped market down there. I'd be looking forward to 2.50 beans and 1.25 corn when they get thier transportation infrastructure done in the next 10 years.

The next agricultural superpower is queing up behind Brazil and Argentina, too - Russia. Now that the Soviets are out and people actually have a chance in that country, they'll be where Brzil is now in 20 years.

How, oh how, will I ever get into this business? I'm clinically insane to desire it so.

Guess we'll all hafta go organic... :-P

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Can't even use my name

10-14-2004 06:46:53




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 Re: More proof Brazil is on the verge... in reply to farmerboybill, 10-13-2004 19:57:38  
Do ya'll really think that if they have to build roads and all that other transportation it is gonna remain so cheap to produce down there? I know it isn't gonna be near as much as up here but it will rise which means a rise in costs to them. The problem is that some fellas with extra money already have HUGE amounts of land there for really cheap so as values go up it isn't gonna cost them any more to get into farming. Labor will rise after a while too, hopefully anyways! What about all the talk of rust? I know I talk like it isn't a problem because it is but what can we do about it besides become competitive. Blame the parts men and seed men and chemical men, they are bending us over and it costs twice as much as it should to buy these things. Organic!! What a joke. Think about it. Everything is organic! Everything comes from the Earth, at least I think so. Those chemicals we spray to kill the weeds come from earthen materials, therefore they are organic. All feed is organic ultimately. Everything is organic. Just another sales pitch.

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Leland

10-14-2004 13:52:26




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 Re: More proof Brazil is on the verge... in reply to Can't even use my name, 10-14-2004 06:46:53  
They must have good enough roads when corn here hit 5.00 some years back ADM in decatur shut off all area farmers and bought it by the boatload form south america and kept the ILL CENT railroad running corn up from new orleans for 2 months straight then when they forced the price back down they wanted a local corn.



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VADAVE

10-14-2004 05:26:04




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 Re: More proof Brazil is on the verge... in reply to farmerboybill, 10-13-2004 19:57:38  
Finally got me to jump.
I agree with John South America is here and I'm afraid so are low commodity prices. The problem with that is that farming is not practical IF you expect to support your family. Ask yourself--How many farmers are completely supporting their family on their farm income? Your not John--you have an off-farm job and so does your wife. Most of the farmers in my area are the same and the rest of them farm full time with their wives working to feed them and keep the farm going.
So how do we fix that? Lower inputs and expenses? Um that's what we've been doing and it can only go so far then sale prices have to go up! How do we do that?
Here's suggestion number 1. Change the tax code. Gains and losses from farming operations may only be used offset gains and losses of farming operations and farms must file completely seperate tax forms. Do that and watch how many corporations get out of the farming business.
Suggestion number 2. Equal input costs world wide. All these conferences to open world markets and reduce import duties and farm subsidies should also focus on input costs. John Deere and Monsanto(?) should not be allowed to sell their products at a lower cost to farmers in other countries.

New subject-- Kerry. His wife, Terrie i think, was a second wife and I really do believe she isn't in any controlling position in Heinz.

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Indydirtfarmer

10-14-2004 03:52:55




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 Re: More proof Brazil is on the verge... in reply to farmerboybill, 10-13-2004 19:57:38  
On the VERGE? I've got news for you! They're already there.

Brazil and Argentina are well into the proccess of running the U.S. out of the soybean market. Or at the very least, making it so unprofitable for us that we just won't care to compete.

John Deere has been building factories south of the border for almost 50 years now. (Mexico and Argentina) The Brazil plant is just a further extention of that effort. (Massey Furguson already has a HUGE operation in Brazil)

John Deere went "world-wide" long before it became popular, and then UN-popular. They have had plants in Germany, France, Austrailia, Argentina, Mexico, and all over rhe world, for half a decade. That is/was their "stratagy" that allowed them to out-perform their competition throughout the last 50 years. By the time "off-shore" business became a dirty word, Deere was well established in global operations, and global marketing. They escaped the wrath of "leaving the U.S.", like so many companies do today, by pulling the bandwagon, instead of jumping on it later. They have always been a progressive, well managed business. That is why they are still JOHN DEERE, while IH is under new ownership for the 2nd time in 30 years.

We can't just "get mad" about the world competition. We have to adapt, improvise, and overcome. (Thanks USMC)

So get used to low commodity prices. They're here to stay. John

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farmerboybill

10-14-2004 05:51:47




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 Re: More proof Brazil is on the verge... in reply to Indydirtfarmer, 10-14-2004 03:52:55  
No, they're still on the verge. They do not have the transportation infrastructure we have. Give them ten more years to build roads. And to dredge and lock and dam thier rivers and you'll see what they really can do. By the way, I didn't mention that they already had a plant down there but they wanna make that one exclusively combines to meet demand.



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Indydirtfarmer

10-14-2004 08:17:57




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 Re: More proof Brazil is on the verge... in reply to farmerboybill, 10-14-2004 05:51:47  
They are on the verge of meeting YOUR standards. They are WAY ahead of there own standards. They will be better served with good roads and such, but that is their ace in the hole right now. Just plain ol' cheaper to operate down there.

They have just about matched our soybean production numbers. They can sell CHEAPER and still make hefty profits.

The way I see it, WE are the ones playing catch-up now. John

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dhermesc

10-14-2004 09:42:40




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 Re: More proof Brazil is on the verge... in reply to Indydirtfarmer, 10-14-2004 08:17:57  
The Brazilian government also recognizes the value their grain exports to their economy as whole and takes great pains to ensure its survivability and profitability. Where as the US government looks at agriculture as only providing 1/2 of 1% of votes and says screw it. Combined with an extremely favorable monetary exchange rate the entire South American continent already has the upper hand. With an economy that is completely independent of middle eastern oil policy or price fluctuations Brazil isn't just "poised" to kick the American agriculture industry to the side of the road, they are doing it.

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Indydirtfarmer

10-14-2004 09:49:58




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 Re: More proof Brazil is on the verge... in reply to dhermesc, 10-14-2004 09:42:40  
100% agree! And they're doing it THEIR way, not ours.

They'll get their roads, and further infrastructure in due time...Funded by their high profits and low overhead. John



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Indydirtfarmer

10-14-2004 03:54:50




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 Re: More proof Brazil is on the verge... in reply to Indydirtfarmer, 10-14-2004 03:52:55  
"Meant to say "half a century", not half a decade! OOOOooops! John



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Jackson Knight

10-14-2004 03:02:03




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 Re: More proof Brazil is on the verge... in reply to farmerboybill, 10-13-2004 19:57:38  
Vote me president I will stop buying crude oil . Start building ethyl plants for cleaner air higher crop prices and keep jobs here.I would think that would be good for the USA. Now if we could find a president to do something about it. I will just keep dreaming.



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Vern-MI

10-14-2004 05:15:19




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 Re: More proof Brazil is on the verge... in reply to Jackson Knight, 10-14-2004 03:02:03  
Hi Jackson

Thought I would help you decide on how to waste your vote. See URL link video.

Vern

P.S.: Where is Allan this AM?



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Leland

10-13-2004 20:24:19




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 Re: More proof Brazil is on the verge... in reply to farmerboybill, 10-13-2004 19:57:38  
Some large farmers in my area have 50,000 acres down there and they get a tractor driver for 30.00 a month



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danboy54

10-13-2004 20:36:33




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 Re: More proof Brazil is on the verge... in reply to Leland, 10-13-2004 20:24:19  
Vote for Kerry. His wife made close to $900,000,000.00 OUTSOURCING US jobs. Think he'll put a stop to it??



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Pitch

10-14-2004 02:47:05




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 Re: More proof Brazil is on the verge... in reply to danboy54, 10-13-2004 20:36:33  
Since you threw the election into this I have to respond. I am having a real hard time not insulting you. I don't really like Kerry but I cannot take another 4 of the shrub. The point of my resonse is THERESA HEINZ KERRY HAS NOTHING TO DO WHATSOEVER WITH THE HEINZ CORPORATION. SHE HEADS THE HEINZ FOUNDATION WHICH IS A CHARITABLE ORGANIZATION STARTED WITH HER GRANDFATHER MONEY. SHE HAS NO INTEREST IN THE HEINZ CORPORATION DO YOUR HOMEWORK.

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dhermesc

10-14-2004 09:45:56




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 Re: More proof Brazil is on the verge... in reply to Pitch, 10-14-2004 02:47:05  
SHE HAS NO INTEREST IN THE HEINZ CORPORATION DO YOUR HOMEWORK.

Other then her estimated 1.2 BILLION dollar investment in that corporation, no she doesn't have an interest.



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John17

10-14-2004 09:06:38




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 Re: More proof Brazil is on the verge... in reply to Pitch, 10-14-2004 02:47:05  
I believe you need to do your home work. If I am not mistaken Theresa Heinz MARRIED into the family ,that means its her grandfather in-laws money. If you don't think she is manipulative , just stop and think about that. JohnG



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Dave 2N

10-14-2004 03:44:23




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 Re: More proof Brazil is on the verge... in reply to Pitch, 10-14-2004 02:47:05  
Come on Pitch, get real.



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Joe Ramirez

10-13-2004 22:28:20




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 jcltok@olp.net in reply to danboy54, 10-13-2004 20:36:33  
Well it's clear Bush is not doing anything about outsourcing - his people trumpet the outsourcing as an achheivement.



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Leland

10-14-2004 14:05:21




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 Re: jcltok@olp.net in reply to Joe Ramirez, 10-13-2004 22:28:20  
The job out sourcing has been beyond the preisdents reach for years,He just can't do anything if someone want to move overseas free country remember.



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