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JimMeade
Veteran Advisor

Trump's Ag Agenda

Based on campaign rhetoric, here are some topics we might see floated in the near future:

Reining in WOTUS, EPA, CofE, and Endangered Species.

Lower tax rate on family farms

Reduce or eliminate "death taxes"

Support RFS

 Will any of this happen?  We'll see.  RFS has to deal with oil-state Congressmen.  Taxes have to ge through CBO and get initiated by the House.

Reining in Executive Branch elements should be possible, but the inertia of bureaucracies is sometimes almost unstoppable.  It will take draconian action.

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7 Replies
BA Deere
Honored Advisor

Re: Trump's Ag Agenda

The death tax really isn`t much of a revenue generator, so i think a higher allowance or repeal will be possible.   Trump is pro-Ethanol and I think he`s smart enough to surround himself with the best ag advisors and see through their BS when they are BSing him...and they will try to slide a pro-industrial ag agenda under his nose.

 

I caught David Kruse on the radio and he`s a huge TPP proponent so of course he isn`t a Trump fan.  He says it will severly damage the pork industry..and less pigs eating less corn, that ol` chestnut.  The thing is, the industrial pork model is completely nuts.  If the industry has a Pedv scare and hogs go to $90, buildings go up and they expand like crazy saving back gilts and in 15 months they`re over producing.. they are nuts, no Trans Pacific Partnership is going to save those mentally disabled clowns form themselves.  If they make a extra buck they spend $100 trying to make another one.

 

Then Kruse talks about Trump wanting to enforce US immigration laws. Apparently the entire US Pork Industry is dependent on illegals working for a little of nothing and those in charge must turn a blind eye to it or the whole thing implodes. 

 

We run a $700 Billion trade deficit and these NAFTA, TPP multi-lateral trade deals haven`t improved our balance of trade in the past.  And agriculture is just a very small benneficiary of those bad deals.  Do the math 15 billion bushel corn production X $3.50 = $52.5 billion for ALL our corn. and similar little less for beans and wheat and pork...just a drop in the bucket really compared to the hit that the US manufacturing workers have taken.

 

I think Trump is on the right track, he just needs to not let any special interest groups derail him.

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k-289
Esteemed Advisor

Re: Trump's Ag Agenda

BA  -  looks  like you have done your home work assigment ---

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BA Deere
Honored Advisor

Re: Trump's Ag Agenda

I`ve got my talking points memorized 🙂

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JimMeade
Veteran Advisor

Re: Trump's Ag Agenda

I don't think you can stop globalization in the long run, any more than you can stop water from running downhill or the wind blowing from high pressure to low.  It has never worked in the past.  Isolationism accompanies depressions and wars.

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BA Deere
Honored Advisor

Re: Trump's Ag Agenda

Well, if every country that the US now does business with takes us, I don`t see cutting strings as detrimental.  A quick example Cummins Filtration had a factory in Lake Mills and it moved to Mexico, 400 living wage jobs were lost, those workers had to scramble to find service based jobs in many cases that weren`t living wage.  Those service based jobs don`t pay enough that the workers won`t owe federal income taxes.  So the government has to provide "earned income credits" to the displaced workers to make up for their lack of a living wage job.

 

So, let`s recap the "winners" and "losers" the revenue to the US government is a loser.  The displaced Cummins workers are losers, they`re making $9/hr working (3) service based jobs opposed to having made $20+/hr.  The town that lost the factory is a loser, less kids in the school, less local support businesses ie cafes, gas stations, ect. The Mexican people working at the Cummins Filtration plant? well they have a job, but it pays $2/hr.

 

So who`s the winner? ..Cummins filtration they have much lower labor costs 1/10 of what it was, less safety and environment rules in Mexico and i`m sure there`s tax loopholes too.

 

You can multiply that with carrier Air Conditioners, Ford Trucks, Maytag washing machines on and on...but hey Mexico buys pork and corn from us. however they export $60 more than what they buy from us each year.

 

It seems to me if you`re in a hole and don`t want to be in a hole, then stop digging.  But really smart people that are billionaires will tell you how wonderful free trade is and how we can`t get along without it.

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k-289
Esteemed Advisor

Re: Trump's Ag Agenda

BA  -  POLITICAL  &  21  CENTURY SOLUTION  being  build  several  more  quick  shops  that  require a  B.A.  or  B.S. degree to prop up the wage scale---

 

Only first we provide a economic development study - oh I forgot to have a couple of consulting firm '' inquireyz '' with matching funding ---

 

Having noticed the fuel & oil filters are also labeled as made in various world location's  - I'm really suprised that a '''COOL''' label is placed on a filter as I have been told it is a ''' very expensive '''  process ?

 

 

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JimMeade
Veteran Advisor

Re: Trump's Ag Agenda

Given the propensity to use the budget to effect political goals, one wonders if the SNAP folks and the farmers aren't likely to end up in the same bed as a way to keep from being budgeted to death.

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