Interesting thing happened during the last Depression. Prices on goods and services actually dropped.
This isn't mysterious or complicated; it's a simple function of supply and demand. The same thing is happening today; a lot of prices are either holding steady, or even declining.
Except for the farmer.
Damnedest thing you ever saw – last year, farmers wound up paying over 30 percent more for seed corn than in 2008. Soybean seed went up too – almost 25 percent.
What the hell's going on?
Remember a few weeks ago when I was on a rant about big corporate ag firms? They're at it again. In the great tradition of huge corporate conglomerates, it's all about more. "Enough" is the dirtiest word in these guys' vocabulary.
Except now, they might just have gone a little too far over the line. Now, the Justice Department is looking into every farmer's favorite company – Monsanto. Remember, these guys are probably the same ones who bought off politicians in India and are getting them to make it a felony even to criticize their product, which is GMO seeds.
What ticks me off is, these guys are always mouthing off about "competition" and "free markets" – and they're all fine with that, as long as it doesn't apply to them. Over the past several years, Monsanto has been buying up all its competitors and pretty much getting a lock on the market for GMO corn. Not surprisingly, we’re paying well over twice for these seeds what we paid ten years ago.
This isn't new. We've been there before – about 120 years ago. They called it the "Robber Baron Era." It was a time when a few powerful individuals – J.P. Morgan, Andrew Carnegie, John Rockefeller and a few others – managed to create monopolies in certain key industries and stick it to everyone else. Then, in the early 1900s, the American people decided they'd had about enough.
We're at about that point today. Is President Obama going to be another "trust-buster" like Teddy Roosevelt?
Maybe...it seems that Monsanto has crossed a line. The head honcho is having to answer some pretty hard questions. Of course, he's claiming just the opposite. In a recent article in the New York Times, he said: "We were the first out of the blocks, and I think what you see now is a bunch of people catching up and aggressively competing, and I’m fighting with them."
So tell me, Mr. Grant (that's his name) – how come we’re paying over twice as much for seeds today as we did ten years ago?
Mr. Grant also went on to say that farmers are buying his company's products because they liked what those seeds produce, not because they don't have any choice.
I don't know much about all the legal issues involved here, but I know this – if it looks like a cow pie and smells like a cow pie, I don't have to pick it up to know that it's a cow pie.
Source: Neumann, William. "Rapid Seed Prices Draws U.S. Scrutiny." New York Times, 11 March 2010



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