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wt510151
Senior Contributor

Re: AgPoll: Should crop insurance take more cuts?

It also doesn't help that a 1949 compact is telling us that terraces are a bad thing. Water is a precious resource and every state with a river running through it wants its share.

Are you not describing marginal land that could be put in CRP? There I go again, promoting subsidies.

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wt510151
Senior Contributor

Re: AgPoll: Should crop insurance take more cuts?

I don't see a flat tax helping farmers, especially if they cannot deduct all the production expenses we have.

We already have a 1980s style crisis. It is called the Great Recession that keeps on going. Any time assets have artificially inflated prices, something is going to **bleep** that balloon. Can be foreign influences or even uncertainty such as seen in today's farm markets. Doesn't make a difference if the farm cash flows if the operation is upside down based on current value. Banks are ready to foreclose because they know the government will pick up the difference. THAT is what looks bad to the public. The cozyiness of wealth, business and government.

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wt510151
Senior Contributor

Re: AgPoll: Should crop insurance take more cuts?

Are you talking about SURE when describing disaster payments? At least a farmer has to have crop insurance to have the possibility of getting that payment.

If you think the banks are not getting bailed out multiple times, you should read how the Fed has bailed out many banks in Europe that have ties to this country.

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Nebrfarmr
Veteran Advisor

Re: AgPoll: Should crop insurance take more cuts?

The only 'marginal' thing about a lot of that land, is that it doesn't have a whole lot of water-holding capacity, and we live in an area that doesn't get timely enough rains in order to grow a good corn crop.  Irrigate it, and you get the national average+.

It isn't highly erodable, it isn't a wetland, it is often a fairly level field that just doesn't have enough moisture to grow consistent high-yielding corn.  The funny thing is the politicians have put a 'freeze' on irrigating more acres, even though our water table has risen almost 20 feet in the last 10 years.  Springs that dried up in the '30s, are starting to flow again, and in some low areas, people are having to abandon acres, because the ground is TOO wet.  30 miles away, we can't pump the water.  Go figure.

Also, the land I am talking about probably would be grazed by cattle, rather than CRP, unless the government outbids the ranchers.

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k-289
Senior Advisor

Re: AgPoll: Should crop insurance take more cuts?

Could be interesting where the water table is by next year this time---wondering how far north the drought will move---

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Nebrfarmr
Veteran Advisor

Re: AgPoll: Should crop insurance take more cuts?

I'm not worried about here locally.  I know of guys in the Nebraska Sandhills who cut hay, only to have the water table rise to the point that in the low areas, their windrows are still in standing water, since late June.  Interesting to watch people bale hay, and have the tires on the tractor and baler get 'wet' because of water squeezed out of the ground when it hasn't rained for 2 weeks.

Now South of us, I have no idea what will happen.  Might ask a friend of mine who works for the irrigation district if he knows where I can get info from their monitoring wells.

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Nebrfarmr
Veteran Advisor

Re: AgPoll: Should crop insurance take more cuts?

A flat tax, as I understand it, would be beneficial for smaller farmers, as there would be a larger amount you could earn for COL before the tax would kick in, at the expense of the BTOs not being able to write off their megabucks machinery the way they can now.

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rightone
Senior Contributor

Re: AgPoll: Should crop insurance take more cuts?

Shape of the trickle down usa system appears that most everyone gonna get cut anyway.

 

Farmers in the same boat.

 

No reason crop insurance should be govt subsidized at all.

Generally businesses have to pay their own ins premiums withou everyone else chipping in for 70+% of that business expense.

 

Granted the govt may have to "broker" a new ins system for crop ins.

Perhaps premiums may be double up to farmers as far as what they are used to paying ( govt of course will not be paying any of the premium ).

Perhaps the actual ins itself may be only half the coverage as is currently.

 

The afore would still be a decent in the event of crop loss. ( just would not be a guarantteed profit on on the loss such as many currently receive ).

 

Several State are taking apps for agri credit mediators to start in 012.

Afore to be pass thru Fed funding to the States then the State program etc..

 

Seems like the writing so to speak on this may be on the wall now.

 

Seems like the only way credit mediators would even be contemplated is if in fact a bunch of agri stuff IS going to be cut.

 

Only problems operators would have with credit sources may be if things like crop ins is cut.

 

Keep in mind, the banks love the current govt subsidized ins programs.

Almost no way they can lose on a client that has the current govt and ra ins in place.

 

Times change.

 

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