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Tractor Talk Discussion Board

Re: Government farm payments!!!


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Posted by jackinok on October 11, 2012 at 10:13:16 from (162.58.82.136):

In Reply to: Government farm payments!!! posted by JDseller on October 10, 2012 at 09:19:39:

another thing to remember,is that included in that list is money recieved from programs that actually not only help the benificiary but often you neighbors also. lots of these programs are COST SHARE programs where the gov pays you a percentage of the total cost only. for instance,if i were to get into the say grassland reserve program ( yes there is one, much like the crp program except it pays to save native grasslands instead of converting to cropland) as i recall last i checked a few months ago it would pay up to 25% of the cost with a limit of $2500. that means I personally ,to get the MOST gov money possible,would be out of pocket $7500.i would have to actually SPEND $10,000 but the gov would send out a inspector,he would assess percentage of the work i did or had done was eligible and only that percentage would be reimbersed,on a 25% basis. NOT a money MAKING deal in ANYONES way of thinking. BUT under this program and others,lets say i removed all the salt cedars along the creekbanks, each one of those trees sucks up to 40 gallons of water a day per foot of hieght.water that comes DIRECTLY from that streambed. heres a little conservation fact for you,the largest ranch in south texas is doing this on a ongoing basis, streams that have NEVER RAN in recent memory are now flowing full time.IF, you were a rancher downstream from this one,would you benifit from this? That ranch is footing 75%(+) of the bill,gov is paying 25%(or $2500 whichever is less),is spending less money for dredging of rivers,is increasing wildlife populations ,is actually INCREASING the cattle holding capacity of the land downstream, making it easier for THOSE ranchers to make a living,putting water into rivers making them more available for commerce,increasing water available to cities in resivoirs and dozens of different things. but these are NOT money making programs. IF however i go to that site I'll likely see my name there. did i make money? no, will i ever make money? maybe but maybe not but the gov says i did. and i'll pay taxes TWICE on that money,once when i made it originally ,and again when i have to report it as income, IF i dont report the cost of this as a buisness investment. in other words if i report that $10000 as a cost of doing buisness, then i can get a tax break on that money. Same as you do I would hope when you say i put this dollar amount of seed in the ground,so thats is a farm cost and not a profit. not all these programs are bad,most are not money makers,all require some sort of initial investment , all have limitations or requirements.none are free,those folks that we holler about that buy land,put it in crp, and make hunting preserves are not making their money off crp,they are making their money off a hunting or guiding BUISNESS. crp is just a tool ,like a truck is to a service person.


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