cancel
Showing results for 
Search instead for 
Did you mean: 
roebke603591
Contributor

2018 Farm Bill option that immediately provides Cash Flow!

Both Ag Secretary Perdue and Ag Chairman Collin Peterson have it but bury it: https://youtu.be/5rXHOjz0X_8 I want US Farmers and Taxpayers to understand as corn and soybean prices continue to struggle because of Chinese Tariffs and a big crop. There is a NO COST Farm Policy Option for our Farmers to use, called the Roebke (REB-KEY) Plan! That Congress can simply attach to the 2018 Farm Bill or President Trump can administer as a executive order to support farm prices immediately and for the length of Five Year 2018 Farm Bill. While also reducing ARC, PLC and other Farm payments by at least $20 Billion over the term of the 2018 Farm Bill. The Roebke option also moves all nationwide E-10 gasoline pumps to E-11 immediately! Which consumes an additional 550 million bushel of corn per marketing year and lowers gasoline prices at the pump by 1 cent/gallon. The option also raises USDA 9 month commodity inventory loan collateral amounts by about 1.70% for all USDA supported crops for the length of the 2018 Farm Bill. For the commodity loan increases in the Farm Bill conferee’s report added to the 2018 Farm bill are not high enough and could be very costly to Taxpayers! Plus the loan increases in the present Farm Bill are not available for the 2018 crop! While the “Roebke Plan” gives farmers presently storing un-priced 2018 crops immediate cash flow! Plus sound price support for the next Five years and time for sound marketing management to cover real cost of production without more subsidies from US Taxpayers just like Sugar Policy has delivered for almost 4 decades now! So USDA corn loans move to $3.50/bu., Wheat to $5.00/bu. and Soybeans to $8.50/bu. for all USA Farmers no matter which state they produce USDA covered crops! This also allows US Farmers the right to extend the above loan option for a additional 9 months on up to 25% of their historical crop production as a crop marketing reserve!!!! It’s no cost to taxpayers, for these loans are recourse loans and have a 1% higher annual interest rate than present USDA loans, that are really only used by Sugar and Peanuts today! So it’s out there Farmers and Taxpayers, as Congress, Universities and Farm Groups fail to address the needs of both Farmers and Taxpayers! ........Thanks Alan Roebke Informed TV Alexandria MN

24 Replies
BA Deere
Honored Advisor

Re: 2018 Farm Bill option that immediately provides Cash Flow!

I favor raising the E mandate to 11% or 15% however just the 10% is a tough political sell holding that. The thing is a $3.50 loan rate is above breakeven for many of us...I`m afraid it would make the pile that we have to chew through bigger and a boon for bin builders.   Anytime the market would try and rally above the new $3.50 loan rate, traders would say "farmers will let go their supply and flood the market!" I can hear that excuse now. 

 

I`m afraid the high cost producers are going to have to be flushed, there`s no putting off the axman.  IMO a supply management plan with incentives for laying idle 5% and a tariff on grain imported into the country.  However, there wouldn`t be political or popular support for that.  "Payin` farmers not to farm!" i can`t come up with a bumpersticker to counter that.  

roebke603591
Contributor

Re: 2018 Farm Bill option that immediately provides Cash Flow!

All i'm saying is get your Farm groups to tell Trump/Congress to give Farmers the option to take the Roebke Plan, for it changes nothing in the 2018 Farm Bill other than you elect to take either the re-coarse loan or the non re-coarse loan.

 

Nor does it affect the push for E-15 but E-11 does use far more corn!  It doesn't affect high cost producers for the loan rates are re-coarse.  It also independently basically blocks both ARC and PLC payments, that you say are not needed in most operations, great!

 

Then think about this and have Farm Doc daily do a story on the Roebke Plan as in you/Farmers all call or email them:

 

Have Farm Doc Post My updated “Roebke Plan” and have them include a survey of there Readers and simply ask if you could take these higher loan rates right now, would you?
 
Would you as a Farmer also think about keeping up to 25% of your historical production in reserve, so you have something to sell when a bad crop hits? 
 
Plus point out to Farm Doc, the interest cost of keeping just 25% of your corn, soybeans or wheat in a reserve for higher prices, would be far cheaper than buying puts or calls on all your crop as some do today!  Plus it keeps bushels off the market and in Farmers bin, which has a much bigger effect on prices than any put or call ever did!!!!!  For Puts and Calls only somewhat follow the market, yet have little affect on prices!     
 
Thanks for your reply and  P.S. Point out to Farm Doc---Under the 2018 Farm Bill, your 2018 crops can only receive a corn loan at $1.95 or less and a Soybeans loan at $5.00 or less and wheat at $2.94.  Farmers you see what the Roebke Plan does for your Farms Cash Flow, which easily gets FARMERS out of your operating loan, the minute harvest is completed for the next five years, right?  Show this to your Ag Bankers as well

 

  

BA Deere
Honored Advisor

Re: 2018 Farm Bill option that immediately provides Cash Flow!

But what happens if the market doesn`t rally in 18 months and all that corn is forfeited to the government?   The taxpayers won`t want it and the slug will hit the market affecting future crops.  This is why if we have to do "something", not planting a percentage of the crop to begin with is the logical course...but I know I know "Pay farmers not to farm" and that`s as far as that ever goes.

rsbs
Advisor

Re: 2018 Farm Bill option that immediately provides Cash Flow!

Alan, the USA tried your approach of above market loan rates, and we ended up with mountains of corn.

 

Refer back to the 1980's if you have forgotten.

roebke603591
Contributor

Re: 2018 Farm Bill option that immediately provides Cash Flow!

BA-------You asked ------what happens if the market doesn't rally in 18 months and all that corn is forfeited to the government?-

 

BA------Under Re-Coarse Loans, grains can not be forfeited to Government, they simply must be paid off so that keeps grains moving!  Other than potentially up to 25% the Farmers could keep for another 9 months!  Plus E-11 consumes another 550 million bu of Corn per year!  Putting inventories of corn right where the need to be!  Why'll the carryover stays in the farmers hand and not in the hands of the grain trade that only want cheap grain!

 

Politicians, Economist and Farmers like to talk why something won't work. The Roebke PLAN IS A ELECTIVE OPTION THAT YOU OFFER AND YOU HAVE TO DO IS WATCH IT WORK.......FOR IT WILL.

 

 BA----Sound Policy works, so let it!  Call Farm Doc and your Farm Groups who are failing both Taxpayers and Farmers!!!!  Thanks Alan

roebke603591
Contributor

Re: 2018 Farm Bill option that immediately provides Cash Flow!

RSBS---------In the past, we gave Farmers only non-re-coarse loans!  Mine are re-coarse loans, huge difference!  Plus we paid storage but under the Roebke Plan, the Farmer just has a viable tool to start managing crop inventory at his own expense but does it with meaningful cash in hand. 

 

Which simply means, the Farmer suddenly has some real time and leverage in the market place!  To suddenly be a major part of the price discovery process!  Where he has had little or none in the past or even now under the 2018 Farm Bill.  Leaving him and the Taxpayer in the hands of speculators who have no production costs!  Only margin money, which they use to take away your profit margin!

 

You see, without the option of the Roebke Plan, you and your fellow Farmers are already positioning your Farm for either ARC or PLC, which means Farm policy is still focused on subsidies and not on a fair price in the market place!

 

Be brave Farmers and demand the Roebke Plan, that doesn't cost but pays well without Taxpayer Dollars! Quit being Chickens and ask for a no cost Option as a overlay to the Farm Bill and let the socialists on the Farm still live off Uncle Subsidy and you off the market Place!!!!!!!!  Thanks Alan       

schnurrbart
Veteran Advisor

Re: 2018 Farm Bill option that immediately provides Cash Flow!

You guys already spent that $7.7 billion he gave out?
basset&co
Senior Contributor

Re: 2018 Farm Bill option that immediately provides Cash Flow!


@schnurrbart wrote:
You guys already spent that $7.7 billion he gave out?

nope, the post office got some and the internet connections allowed some to be "taken" by creditors already hungry from 8 yiears of the previous admins.

roebke603591
Contributor

Re: 2018 Farm Bill option that immediately provides Cash Flow!

Have you Guys looked at this from FB and loan levels?  Alan

 

 

https://www.fb.org/market-intel/whats-in-title-i-of-the-2018-farm-bill-for-field-crops