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Senior Advisor

Re: Agriculture With No Farm Bill


@rswfarms wrote:

Yes, r3020. I will not say that losing the combined $42/acre in Crop Insurance Subsidy and the $20/acre in Direct Payments wouldn't hurt, but at corn prices over $5 the hit wouldn't be to bad. But on $3.50 corn, the loss of this $62/acre would be painful, at least for me. My break-even on corn is $2.52 so I am better off than the guys who have a break-even of say $4.75 a bushel. That is the problem, my land cost now that all my farmland loans are paid for is only the $25/acre in Iowa property tax. The guys who are paying say $300/acre in a farmland loan will take this loss of $62/acre much worse. Guess before you take this $62/acre away from all farmers, you better let them pay off the farmland loans first since they banked on this $62/acre as revenue to help pay off there farmland loans.


None of us are entitled to anyone else's money. Your farm land alone is worth 15-20+ million dollars. The country is broke. We should all be lobbying our members of congress to eliminate the farm bill. All it does is transfer money from struggling tax payers to BTOs.

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Senior Contributor

Re: Agriculture With No Farm Bill

Yes, r3020. I don't make the rules, I just follow them. I can take a $62/acre loss in revenue much, much, easier than the younger guys with large farmland loans to pay off. To them losing $62/acre could mean the difference in staying farming or going bankrupt. I would like to hear from the younger guys with large farmland loans on there opinion on this. They may have factored in this $62/acre as revenue to help pay there big farmland loans.

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Advisor

Re: Agriculture With No Farm Bill

3020 - I tend to agree with you regarding government payments to grain farmers, because there is no remedy for livestock farmers who suffer through a drouth like we are in now, except loans, and I am sure few farmers want any more loans from our government.

 

Their helping hand has destroyed Agriculture in America, but of course that was the plan from the beginning.  You see our government could not have a large population of "individualists" that could survive without them, and not be under the "jack boot" of government. 

 

They have done a real fine job, there are about 80,000 farmers in Iowa today, soon they will have it town to 1. 

I think if we eliminated all USDA programs regarding CRP, Direct Payments, FSA land loans, Crop Insurance Subsidies and all the other programs that cause farmers who use their services "indentured servants" to a bureaucracy, we would be much better off. 

 

The only people who need government payments are BTO's as you call them.   You see they could not expand their operations without a government guarantee backing up their poor farming practices and bidding up marginal ground to farm.  

 

If the Farm programs were dismantled, you would see major changes taking place in banking, seed and fertilizer financing and equipment financing, because without a government payment or a government subsidy to underwrite thier losses, these outfits would be put out of business.  I do not know any small farmer that is going to roll combine debt and purchase another combine for $350K because they lacked the cashflow to pay this years payment. 

 

But of course our government is following the same policies Stalin followed in making the Kulaks go extinct, except our government is killing them off with cheap food policies and supporting those who probably earn less then a fella can earn today on a good half section.  

 

I remember Member of the Iowa corn growers whining that they would have to sell out if they lost their government payments, of course that was ten years ago.  Most of these operations are flashes in the pan, they rent all the land they can, pretending they are making progress when in many cases they end up in Bankruptcy Court. 

 

I mean some of these operations look successful, but look at their books and you may find out otherwise.  After the farm depression in the 80's, a group of young farmers (in their fifties now) decided they were going to farm the world, all they needed was a great equipment line of "leased" equipment, let Pioneer finance thier seed needs, let the coop finance the rent, fertilizer and chemicals, and then throw in $40K for living expenses til the crop came in.   Well . . . I watched some close friends in that age group go down the tubes and they were among the larges farmers in Iowa. 

 

Sooooo . . . I say cut off the government subsidies, support, but before they do that, they need to close all the FSA and Extension offices in this Country, and require anyone with a FMHA loan, to get into a bank for financing and close that agency.

 

They should also eliminate the Government Bond Financing for the Federal Land Banks and let them compete with local banks for loans, and raise their capital in the private sector.  Of course we could then eliminate FHA, and CCC, and the export subsidies to grain companies.  I am at an age where I would like to see how a movie like that would turn out.

 

Since Walmart is hiring Vets, I bet they would open up and hire displaced Federal USDA employees and Iowa State FSA employees.   I really feel sorry for those farmers who are told by the FmHA what they have to do, like you need a new house, new machine shed, new equipment, but you only get 75% of the operating loan you really need to plant a crop right.

 

 These nimrods in these offices cannot afford to allow an farmer to get out of their control.  I listen to younger farmers financed with them, and they never really get the money they need to do the job right and I have yet met one that was happy with the relationship.  So lets just close down USDA programs addressing farmers.

 

Immediately after we do that, land prices will crash, equipment will be cheap (since BTO;s will be selling out) and rents will be much lower along with other costs.  It would be a great time for a younger farmer to start farming.  A bust is coming!      Adios Amigo. John

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Contributor

Re: Agriculture Wtih No Farm Bill/$42/acre in Subsidies

The potential pull-back in rents and land-prices from the reduction in insurance availabiliity - no sane company would wright these policies without the gov. picking up the tab, maight enable a smaller or diversified producer like myself to actually be able to afford to access acres.

 

This country is flat busted, and you evidently don't need a handout if your posts on agweb are any indication, rsw.

Junior Member
Join Date
Dec 2012
Posts
6
Oh, bought my wife a brand-new $63,000 Lexus SUV today and paid cash for it. She is very happy. And look at what Iowa farmland values have done below. Yes, it is absolutely great to have over $30 Million in Iowa farmland. Don't believe the people that say money doesn't buy happyness. When I drove that $63,000 Lexus SUV off the dealers lot today, I was one very, very, happy camper. Money does buy happyness!!!!!!!!!!!!!!!! LMAO!!!!!!!!!!!!
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Contributor

Re: Agriculture Wtih No Farm Bill/$42/acre in Subsidies

With public commentary like this, why would any sane individual think that farmers need any form of subsidy.

 

Junior Memberrswfarms is on a distinguished road

Join Date
Dec 2012
Posts
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Thanks guys for the compliments!!!!!! Been out driving my wife's brand new Lexus SUV today. It's a really nice car, and as quiet as a Library inside. Never realized how quiet a car could be inside, must be built really good to be that quiet. Anyway, she really likes her new Lexus SUV. It was worth every penny of the $63,000 I paid for it. When you got over $750/acre in profits for the 2012 crop year, you have money to burn. I have 1,575 acres so 1,575 * $750/acre in profit= $1,181,250 for a 2012 Total overall farm operation profit. Yes, believe this is the first time I made over a $1 Million Dollar for just 1 crop year. I am finally playing with the Big Boys and it's a darn good feeling to buy just about anything the family wants or pay a $120,000/year in college tuition costs for 3 kids to attend private colleges.
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Senior Contributor

Re: Agriculture Wtih No Farm Bill/$42/acre in Subsidies

Yes, Husker I love to give the AGWEB Boys $-h-i-t, since they pick on me constantly. They pick on me and they get the same medicine back from me. I love it and they never let a chance to pick on me go over. So,again, they pick on me, I will give them the same medicine back.

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Senior Contributor

Re: Agriculture Wtih No Farm Bill/$42/acre in Subsidies

Again Husker, the AGWEB Boys pick on me, they will get the same exact _____ from me.

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Advisor

Re: Agriculture With No Farm Bill

Kay, swine and poultry are not completely free from crop subsidies. They benefit from generally lower crop prices when sourcing grain, thanks to subsidies over the last 40 years.
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Senior Advisor

Re: Agriculture With No Farm Bill

OK, it looks like several think that many fams would get bigger and there would be a few smaller specialty farms.

Land grants would be hard hit by lack of federal grant money for research (it is very scary already how much land grant university research is focused not on what farmers need but on what the federal government is willing to support).

Private business would strengthen their hold on some segments of agricutlure, for example, bio-technology.

Farmers would start shifitng their production to support other government porgrams like SNAP.

It looks ike many would quit using crop insurance.

I didn't see any comments on risk management.  Without crop insurance, do you think there would be more use of futures, options, and contract growing?

Some suggested banks would tighten up loan eligibiltiy without so much predictable gtovernment support of ag.

 

So - corn and wheat farmers would start acting like poultry and hog farmers?

Advisor

Re: Agriculture With No Farm Bill

I disagree with your comments in parenthesis. Agriculture has a voice in what research goes on through USDA funding.  FYI, wheat genome research and, FYI, research that uncovers resistant strains to the Ug99 strain of rust is driven by the wheat industry.  How you say it is not is beyond me.  I've been a participant in these discussions and have been witness to the responsiveness of the scientists that operate these labs, and also through our commodity organization that leverages farmer research dollars through federal funding at a number of land grants.

 

As for biotechnology, those who favor ending all government funding of agriculture forget that they would in fact hasten the consolidation of the private industry's hold on agriculture.  If it weren't for recent proactive investments in new research initiatives in wheat, thanks for the leveraging offered by matching federal dollars to checkoff dollars, we would not see a resurgence in new investment in this research.  I've been an active member of a group of farmers through our commodity group that also has founded a new biotech company.  We've been in operation for three years and just moved in to our new headquarters with research lab space. Our goal is to bring new varieties that increase farmer profitability within a shorter time frame than ever before.  We are on target to achieving our goal.

 

We need to remember that not everything that is posted on this web site is factual information, but mostly opinion.

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