Posted by paul on December 14, 2012 at 17:30:25 from (66.60.223.232):
In Reply to: Fed. subsides question posted by Larry NEIL on December 14, 2012 at 12:36:18:
Livestock producers can get many types of loans or grants for dealing with manure issues, water quality issues, etc. Like all govt programs, the govt requires dumb stuff that costs the livestock growers, so it's not all free money. But for example, my dairy neighbor put up a new 120 cow dairy barn, he waited a year and then got some grants and low intrest loan to put in the manure basin. This can also apply to hog and beef folk, depends how you play your cards.
Dairy folk have some milk payment programs that they can collect on. Again, the govt messes up the market so badly, it's not a great deal - but it's there, folks are getting peayments.
There have been cattle payments in the past, sort of a disaster for poor hay deal. Very low payout, and don't believe it is still part of the current program, but it has happened, and could again.
Some will argue the crop subsidies were the main reason crop prices have been so low and stable for many decades, and so these subsidies generally passed through to livestock producers so they shared heavily in the benefits of the grain subsidies. But some livestock producers don't like to hear that, so I'll just pretend I didn't say that. I do remember in the 1980's and 90's getting $2 a bu for corn or less, and livestock fellas snikering and saying who would be dumb enough to grow corn, when they could buy it cheaper than they could grow it.... But no matter, never mind....
In general, the year in and year out subsidies go to corn, soybeans, and wheat - the bulk grains that get exported.
Of late the govt has prefered subsidising crop insurance, and letting private insurance deal with crop and revenue losses. You can insure your crop for damage, and/or for a certain income level per acre. The govt pays a portion of the cost of these types of insurance. You pay the rest. It is a _very_ complicated thing, with many options, and the price is different in every county of the USA. So it is difficult to explain this so it makes sense, or compare a dollar figure on it. It is the direction the govt seems to prefer tho, and wishes to expand in the next farm bill. The direct payment appears they will end, and the other programs perhaps fade back some.
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