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Senior Contributor

Iowa is second-biggest farm subsidy recipient-It doesn't stop!!!!!!!

Below is an article on the front-page of Iowa's biggest newspaper today. This newspaper seems to think there main job is to make farmers appear in the same class as people recieveng Food Stamps and Welfare Payments.This is getting very old and I refuse to feel guilty about the Crop Insurance and Direct Payment Subsidies I get even though they amount to 6 figures. Article is below:

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Iowa is second-biggest farm subsidy recipient

 

$24.9 billion was hauled in by the state's farmers between 1995 and 2012.

WASHINGTON — Iowa farmers collected $24.9 billion in subsidies between 1995 and 2012, making Iowa the second-largest state beneficiary of the payments in the United States, according to information released by an advocacy group on Wednesday.

The annual release of the data by the Environmental Working Group comes as subsidy payments, notably the $5 billion a year direct payment payout, are being targeted by lawmakers in Washington, D.C., as a way to reduce spending in the United States. The full Senate, which is working on the farm bill this week, has proposed subsidy cuts of $17 billion. Some of the savings would be used to expand the country’s crop insurance program.

EWG said from 1995 through 2012, the largest subsidy payments within Iowa were for corn, at about $15.3 billion, soybeans at $4.1 billion and the Conservation Reserve Program at $3.5 billion. The group said 10 percent of farms in Iowa collected 59 percent of all subsidies, or about $12.3 billion. During the same time, crop insurance subsidies totaled $4 billion.

EWG said crop insurance costs have hit an all-time high and the money helps the largest and most successful farmers who don’t need it.

“Under current law, taxpayers pay two-thirds of crop insurance premiums and most claims filed when disaster strikes,” said Scott Faber, Environmental Working Group’s vice president for government affairs. “This policy has made crop insurance the most expensive — and least equitable — component of the farm safety net, costing taxpayers twice as much as direct payments and other subsidies.”

EWG said that in Iowa last year, payments for the Conservation Reserve Program and corn and soybean subsidies totaled $740 million. EWG collects and publishes the information from data it receives from the U.S. Department of Agriculture.

In the United States, the advocacy group said that since 1995, $292.5 billion in subsidies was paid out to farmers. EWG said 10 percent of farms collected 75 percent of all subsidies, amounting to $178.5 billion. Texas ranked first in payments. Just over 60 percent of farms in the United States did not collect subsidy payments, EWG said.

 

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36 Replies

Re: Iowa is second-biggest farm subsidy recipient-It doesn't stop!!!!!!!

I think you can afford to pay the full cost of your crop insurance (still a very good deal that the government built the system with a large amount of seed money) or choose to self insure which I assume you can also afford.

 

Or if you feel that the real and  implied support (if things go bad, uncle has always had your back) of the government that surely underlies some of today's land prices is a thing of the past there is time to cash out and pay taxes at a very reasonable level.

 

The doctors, pension funds, other farmers who would buy it might be right, might not. Only time will tell.

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Senior Advisor

Re: Iowa is second-biggest farm subsidy recipient-It doesn't stop!!!!!!!

Your not doing anything shameful or illegal unless........You disparage others with their nose in the welfare trough

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Senior Contributor

Re: Iowa is second-biggest farm subsidy recipient-It doesn't stop!!!!!!!

Hardknox- just for my small to medium size Iowa Farm Operation my Crop Insurance Subsidy is $81,600/year and the Direct Subsidy is around $34,000/year (I am in the ACRE Farm Subsidy Program and that costs me $5/acre of my Direct Subsidy as you know, it is the cost to be in the ACRE Farm Program). So yes, I recieve a total farm subsidy of around $68/acre. If I had to pay the $81,600/year for my Crop Insurance that the Taxpayer currently pays, yes, I would probably go the Self-Insurance Route. And this total combined Subsidy of Crop and Direct is figured into the value of an acre of farmland, but using the Standard Capitalization Formula it really only amounts to only $476/acre of the value of $15,000/acre dirt. Anyway, if I lost both these Subsidies my cost of Production would go up by 30 cents per corn bushel and $1.04 per soybean bushel. This isn't a huge cost increase, but for some farmers it can mean the difference between making a profit or losing money. I think if they do decide to get rid of these subsidies, they should do it over at least a 5 year time span to give us farmers time to adjust our cash flow..

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Senior Contributor

Re: Iowa is second-biggest farm subsidy recipient-It doesn't stop!!!!!!!

 

 

It Needs to go away, like Yesterday, in Fact; I would make it retroactive...the past 3 years are Due in Full.

 

I think I would like the IRS to be in charge of such a program. Smiley Happy

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Senior Contributor

Re: Iowa is second-biggest farm subsidy recipient-It doesn't stop!!!!!!!

For the last 3 years?????? That is around $345,000 for me. It is to late, the wife already spent all $345,000 of it. However, I will ask to see if there is any left at all!!!!! Maybe we can pay $20 of it!!!!! LOL

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Re: Iowa is second-biggest farm subsidy recipient-It doesn't stop!!!!!!!

Hi NewAgJudge,

 

All kidding aside, that is axactly what shouldn't happen.

 

Even though some people hit a huge windfall based in part on being in the right place and time when there were poor policy decisions, it isn't right to take it back. 

 

It is right to correct those publc policy errors immediately and henceforth.

 

BTW, if there is a farmer who won't make it without the subsidies you can always means test although I'm in favor of nothing or a very strict per capita limit.

 

 

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Advisor

Re: Iowa is second-biggest farm subsidy recipient-It doesn't stop!!!!!!!

IOWA deserves more subsidies for its 100,000 farmers,because that is where the best land is located, and where the yields are highest, therefore subsidies should be provide those who have the most at risk.  Does anyone actually believe sugar cane, cotton and rice farmers REALLY deserve the payments they get paid per acre in the Delta and Florida, their payments per acre make Iowa corn and soybean subsidies look like "Chump" change.  I understand that the nimrods in the Delta are going to have a seperate farm bill for their crops.  I wonder who REALLY won the Civil War??????   John 

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Re: Iowa is second-biggest farm subsidy recipient-It doesn't stop!!!!!!!

Oh c'mon Faust.

 

The world is not going to come to an end if subsidies for producing commodity crops end, particularly following a period of historic returns. A bit of your income stream and/or land value might. The land will get farmed, or at least the land that the market wants to be will.

 

I get the hugest kick out of when following the most recent Republican self immolation they trotted out the old (misquoted) de Toqueville thing about how a democracy lasts until people learn how to vote themselves money.

 

Truth is that people with advantages are voting themselves money and generally using government to burn the bridge behind themselves.

 

 

 

 

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Highlighted
Senior Contributor

Re: Iowa is second-biggest farm subsidy recipient-It doesn't stop!!!!!!!

 

That is a sizeable chunk to be sure. You might even have to sell a few acres.

 

The good news for you is that I doubt We could ever pass such a dream bill, so you can keep the $ 345 K.

 

But, would YOU or someone Pay for my Water that I am forced to buy due to Big Ag's Pollution ??

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