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What will rural America look like without Direct Payments?
I am curious what you guys think will happen if subsudies are eliminated? Will farms get smaller? Will land rent and values go down? Will rural communities suffer? How would it change youre operation?
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Re: What will rural America look like without Direct Payments?
I'm afraid that about the time congress eliminates subsidies the farm economy will be due for a downturn. Murphy's Law.
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Re: What will rural America look like without Direct Payments?
Farms will get bigger not smaller if the subsidies go away. You will see more diversity than corn and soybeans in the midwest. And farmers will have to be low cost world producers.
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Re: What will rural America look like without Direct Payments?
You might see some slippage in cash rent but it really depends on what the markets do. I've been somewhat amused by those that advocate dropping price supports thinking that the young and beginner farmers willbe able to rent more ground.
The fact is that competition will not fade without subsidies. The competition will be just as keen as competitors are seeking more acres to realize the economies of scale. Big equipment and herbicides probably did more for size expansion amongst the american farmers than crop subsidies ever did.
My subsidy checks can be offset in a few hours by a bullish grain market. Subsidies just aren't that big a deal for a modest operation. No farms will not get smaller and rents will fade only marginally.
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Re: What will rural America look like without Direct Payments?
You are probably right, farms probably wont get any smaller and eliminating subsudies wont help the young farmer any. Ive heard a few say farms would get smaller but you would think many would have to in order to make up for the subsudy money by farming even more land. A comment I read from Belarus on farmers in the cornbelt raising less corn and beans and trying different crops probably wouldnt happen due to the contracts for tomato and potato or other crops along those lines are very hard to get. The biggest losers would probably be equipment dealers, tilers, crop insurance salesmen and the list could go on..... maybe? Its an interesting topic and one Ive had many discusions with neighbors on over the years. Yet it looks as though now it could really be happening. Looks to me that Direct Payments were formed out nessesity in tough times and will be taken away by alot of greed by some that didnt need them and found a way to cheat the system in good times. I think it won't be just farmers but all rural America that could really suffer in future bad times.
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Re: What will rural America look like without Direct Payments?
Remember we have to "feed the world"----would this be possible without direct payments ? ?
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Re: What will rural America look like without Direct Payments?
The status quo here in the East for many ears now has been "farming the programs."
When I see guys running several quater-million-dollar cotton pickers running in the fields in theall, who cannot scrape up enough spare resources to no-till a bushel to the acre of bin-un grain for cover crop when they are done picking, I honestly don't get it. Their topsoil erodes all winter, and I guess a lot of them visit it when they take their vacations at the beach the next summer.
We've tried to exist as much as poissible without relying on program payments. Right now, I estimate that they about offset the federally-mandated local expenditures in our property tax bill...in other words, a wash to pay for all of the entitlements that others receive, that we are forced to pay each fall jus tto keep what we've worked a lifetime to buy.
You folks live where there is still a lot of rural and ag-related infrastructure and he culture is still built a lot around farming. Carolina is a lot better conserving countyr assets in that respect than was VA, but I'd say it is slipping with each passing year.
For example, every little slaughter plant that closes is one more nail in the animal ag coffin...then, once there are not enough in private enterprise left to support a viable ag sector, government steps in to site "regional facilities." Just got the card about a meeting to start towards one in the neighboring county today. I don't have time to go, but I'd say even if they get the money, no one will want to host the plant, thanks to NIMBY.
We just have it all backwards here...regulate families out of business, then look for some fat grant to build one at public expense. Around us, I expect to see fewer families settling in, our school sysem is at half-capacity or less than it was 15 years ago, although we've closed four or five schools, we've built one new and they want one more, and a new courthouse.
God help us...we cannot afford the light bill on the last white elephant they built with USDA Rural Development money, and probably 6 million has been spent running water lines to fewer than 10,000 people.
As chairman of our county planning board, I see both too much and not enough. The safety net is all that's kept us afloat. If it's pulled out from under us, we will be left with even more extreme ends of the very rich and the very poor, and fatally fewer middle class residents in between.
Disparity and maldistribution of money - locally, regionally, and nationally - is the end result of the trend that's blowing in the wind right now.
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Re: What will rural America look like without Direct Payments?
I dont know? I have two off farm jobs so farming is not my full time income. I dont get upset at mid-level farmers for taking Direct Payments, but it not only bothers me but gets negetive attention from the non farming community when they hear about very large and somewhat wealthy farms taking a payment not originally intended for them just becuase they found a loophole in the system. Most of you know my stance on direct payments-I dont think we should cut them out completely but just dont make them free.
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Re: What will rural America look like without Direct Payments?
Expanding on kraft t's post I think roundup ready seeds have had the most impact on ever larger farms.
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Re: What will rural America look like without Direct Payments?
Take away direct payments and we won't have to report crop acres at FSA. As for LDP, we have not gotten those for awhile anyway. I remember Katrina. I was a dairyman then and used all my corn as silage and bought my grain really cheap. Each nite I would bring up the FSA site and claim a big fat LDP payment on the corn silage acres I chopped that day. Doesn't get any easier than that. I often think of that when livestock cries foul. Taking the subsidy out of crop ins. would hurt the highly leaveraged farmers (BTO and young, beginning) farmers most as lenders require risk management,IMHO.