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nw NC | I doubt that Feds are involved.. But good business economists could look at it in this way:
It is highly unlikely that liquidation means ALL COWS SLAUGHTERED ( slaughter value of cow is a lot less than milking cow; banks would lose too much ). In the liquidated herds most cows go to another dairy and continue to make milk. However, there would be some cows from those herds that would go to slaughter now rather than being kept and milked had not the herd been liquidated. ( Those herds, being in financial difficulty, were probably milking cows that should have been culled months ago .) So, by forced liquidation, some fewer cows being milked = less surplus milk. Projections are for MILC payments to be made this spring and summer. Less milk produced would cut down on amount of MILC payments thereby saving Feds money. Personally , I don't think Feds have enough sense to look at it as I did.
If banks lose money so what ? Banks make money or lose money everyday. They took a risk by loaning money out and they lost. That's the nature of the business. | |
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Rumbling in dairy
