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10-03-2017 08:59 AM
Two thoughts come after a couple of days in that cleaner Iowa air........
1....... The vision that is brought on by that statement........" Obviously the farmer with only a $20 annual tax payment will be last man standing, everything else being equal"..............I have never met that farmer, but some fools will take a lot of pride in that statement............ Is it a battle or is it just a series of choices....not taken. It is just a picture I hope not to be in.
2.......... usda/stubbornness..... .I saw farmed hillsides with weed patches that had better yield potential than the beans next to them, and hobby told me usda will offer a $200+/acre annual CRP payment to take that ground out of production.
That tells me usda is supporting crop rents in the $300-400 per acre range regardless of grain prices.
And being a surviver is all that is possible when the battle is over. A surviver less a life savings is not my goal.
10-03-2017 09:27 AM - edited 10-03-2017 09:30 AM
#1 , we have met. I'm foolish enough, I'll agree with that. Few that I'd trade places with though.
#2, hard to get more enrolled in crp
Only 2 "flower " crp contracts in our county for next spring...one is 16 acres
10-03-2017 11:45 AM
Well, let`s say you`re a "Hobbyfarmer/Jim Meade" guy, bank full of money, paid for machinery, paid for land and your only required expense is that $20-$30/ acre check they write to the county treasurer each year. Their neighbor might write a $300/acre rent check to a landlord, make payments to John Deere and Agstar Financing, well if Hobby & Jim want to take that $270/acre springboard they have and use that as their "fun money". I`m not going to say they`re crazy, maybe they figure all their expense including time and interest on their money, they`d be further ahead hunting down the fool paying $300 rent and renting to him, but they`re having fun and that`s what life is about.
The CRP is both poorly ran and gets a bum rap at the same time. It`s poorly ran in that they take bids...this time I think they made exorbitant offers on ice cream soils and quickly filled their CRP acre quota. Well, how about sensible offers and target highly erodible land? But we saw kind of the same thing in the 80`s with a high bid and a $2 bushel on yield base as a bonus. It is and was a bailout program for hounds that are in the loop on this stuff, not fair at all.
But the critique is that "the government is paying $300 for CRP so cough that up or I`ll put it in the CRP, my dear tenant!" . Though it did set a much talked about baseline, it wasn`t anything that a group of farmers fighting over a piece of ground weren`t already doing to themselves. The CRP program as a whole is a good thing for the tree huggers and Pheasants Forever clowns and those afraid to death about phosphates and nitrates and atrazine in the `waters of the US`. Ideally it would be only land that grandpa would`ve put in pasture, hay or oats back in the day and it does take a smidgen of production off the books after the "Food vs Fuel" debate has hopefully been settled.