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Re: farm subsidy


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Posted by paul on May 02, 2010 at 20:06:15 from (66.44.133.78):

In Reply to: farm subsidy posted by allisinMI on May 02, 2010 at 19:44:47:

How complicated do you want me to get? :)

You get to sign up your farm land every 5 years or so for The Program. Then each year you get to sign up for The Program, to account for any changes you or they make.

Then you get to certify your crop acres each year.

Then they dole out a Program Payment. That could be $20-40 an acre, depending what crop you grew in the 1980's on that land. Of course, that money is now 'built in' to the land rent or land cost, which raises the property taxes on it - so you don't really get the money, you get to pass it along to others in the community....

You can elect to take a LDP if grain prices are low enough. Haven't been low enough in 3-4 years now,w hich is good - if you collect LDP, it means you are losing money big time,grain prices have to be _bad_ to get any pennies out of this.

You can collect a 'counter cyclical' payment if the grain prices are real low for the whole year. This money will come about a year later. Frankly, _this_ is the only part of the program that makes any sense - it is a safety net for terrible low grain prices, and if it were run a tad better, get rid of the rest of the program & just keep this one..... Again, haven't collected in years, it doesn't kick in very often.

Of course, you land needed to be in the program, and you needed to certify your acres for 5 years back in the 1980's, to get yourself into the program. You did that, right? Dad didn't bother certifying 2 out of the 5 years, and so I'm losing 2/5 of the payment in 2010 yet. It's a govt program, you know.....

You can't do drainage unless you ask & get permits, and you need to follow rules for highly errodable lands, and many other details.

Other parts of The Program are:

Grain loans. You get a lower interest loan on your stored grain, but you need to pay it back. (So it looks like you make big bucks on thatr web site you went to; but no, much of that needed to be paid back - which that web site you went to doesn't bother to tell you....)

CRP - the govt will rent some of your land for a 10 year period, if your land is a little poorer on hills or wet or whatever, and they rent it kinda cheap for wildlife use. You need to control the weeds, and you need to plant apporved, very spendy grasses & native things on the land. So again, on that web site you went to, it shows the money you collect, but it doesn't acknowledge the big expenses you have to spend.

The office you want is FSA (Farm Services Agency). It typically is close to or shared with the USDA office. One will know the other, anyhow.

They can fill in the blanks for you, and see if your property can possibly qualify.

--->Paul


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