Re: goverment payment

Posted by paul on April 11, 2018 at 12:34:27 from (76.77.197.114):

In Reply to: goverment payment posted by stonerock on April 11, 2018 at 10:03:17:

I don't rent any land so I'm probably not a good judge.

The current govt program rewards insurance companies and bank loans, not really much for farmers. Imho.

The 'free money' payment has dwindled down to very little, which is fine with me. However, that part of the program was very haphazard, one county might get big payments for a year, while the neighboring county got nothing. I appreciate they tried to balance the payments to match poor crops and poor prices by location, but it really didn't seem to work out that way, turned out pretty unfair.

This is the last year of the current program, they are supposed to be hammering out a new farm program, of which 78% is free food for poor folk payments, and a few percent is for administration, and less than 20% goes to farmers - tho most of that really goes to insurance companies as crop insurance subsidies.

Many on here will be pretty upset about the 5-7% that actually does go to farmers, and that's fine. But if govt spending bothers you, remember if you take everything away from farmers, you still have 85-90% of the farm bill being spent and coming out of your paycheck, did you save very much and how much is your food bill going to increase?

I don't like some of the current direction of the farm bill, and if everyone all around would get some cut backs I'd be fine with eliminating most of it myself. As you know, farmers already lose 7-8% of the payments you think they get, while the food stamp side of it is still fully funded. Who else is getting cut back in govt program funding?

Anyhow, I'd do it different if I were emperor, but us little folk don't get asked, the farm program gets set up with bankers, insurance companies, and social services folk sitting at that table. Whatever screwy deal comes from it has little to do with actual farmers input.

It might offer 20-80 an acre (closer to the zero for most) plus some help with crop insurance payments, and can be pretty important to your banker if you have a big Ag loan. So like it or hate it, you probably have to play along with it unless you've stayed pretty small. Nothing wrong with that. Anyhow, you are at a disadvantage $$$ wise to others if you aren't playing along, so it probably hurts rental a little bit in most cases to have land that isn't in the program.

And yes, Traditional Farmer will be along soon to tell me how stupid I am, whatever. The rest of you can take or leave my comments however you like, just my view of it all.

Paul

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