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Veteran Advisor

Re: USDA cuts

rsw - first you boast about " X amount "of profit - why the big need for subsidized crop insurance -the premium is tax deductible -while our cousin in Houston doesn't get to deduct anything and  he is an accountant he just shakes his head on all of the loop holes  of deductions---seems the city folks are observing more and more---just an observation we as ag might keep in mind ---

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Advisor

Re: USDA cuts

I think there is other crop insurance from the FEDS, it is called CAT!  I found it interesting that is what most were buying who farmed South of the Mason-Dixon line.  I think it cost something like $50 for each farming unit.

 

Of course there is so much rated ground in, Arkansas, Louisiana, and Mississippi that they would have had to pay a fortune for regular coverabe.  No wonder so many were going broke down there.   John

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Highlighted
Senior Contributor

Re: USDA cuts

It's simple, the "city folks" who are complaining about our business expenses (not loop holes) apparently don't know jack about businesses. If they are w-2 types maybe they should quit their boring jobs and start their own business so they can drown themselves in all those " loop holes." And your CPA cousin in Houston -- think he claims his computer, pencils, lots of erasers, gas he uses to go to all his audits, etc. etc.??? He's lucky he doesn't have a combine or a planter to pay for that he uses for six weeks a year.

They are business expenses!!!
Senior Advisor

Re: USDA cuts

Sorry K-289!  Don't expect these farmers to view the tax code from any different perspective other than their own. They think they deserve any deduction or any tax incentive that they get and more.

 

You should have heard the howls of disgust when city folks got that cash for clunkers incentive while these guys go to the hog trough for tax incentives each and every year.

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Senior Contributor

Re: USDA cuts

The cash for clunkers fiasco wasn't just for city folk,  farmers used it too.   What it did was remove a lot of good used vehicles from the market so now lower income folk can't find used cars and trucks.    And the salvage yards can't recycle parts because the clunker vehicles were crushed and gone.

 

A real stupid program that wasted taxpayers'  dollars.

 

 

Veteran Advisor

Re: USDA cuts

Being an employee of a firm doesn't give one the option of deducting your  PENCIL's or depreciating a new vehicle in one year and deducting the fuel to go in it although he get's to review a variety of business accounts--- I stated that all of the statements about exuberant  profits and land values on this site and others are being heard inside the metro area -  also and we wonder why the farm bill wasn't brought to the floor at the House of Representatives ---just letting us know some thoughts on a different perspective from folks that are only 2 generations removed from a conservative ag family---after two decades in the accounting firm he  knows a little more about  JACK then we think ---  

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Senior Contributor

Re: USDA cuts

One big reason the Farm Bill didn't advance is the obvious need to trim the fraud and waste from the SNAP portion.   That 75% of the Farm Bill is breaking the bank.     But too many politicians fear being demonized for doing the right thing.

 

 

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Senior Contributor

Re: USDA cuts

fringeacres- sorry to hammer you on your Crop Insurance Subsidy on your 1,500 acres, but you made it appear that I was the only one getting the $45/acre subsidy. When in fact you too are recieveing it. Also, I have owned farmland since 1986, so I was around for $1.80 corn and sub-$5 beans. I still remember all too well faxing in the LDP (Loan Diffententcy Program) forms to the USDA to get my LDP Goverment Payment. Wasn't that fun filling out the LDP paperwork to get those $37,500 corn LDP Checks? I hated that, but those LDP Goverment Checks saved alot of guys from going bankrupt again like in the mid-1980's Farm Crisis. Anyway, we both get a $45/acre Crop Insurance Subsidy from the taxpayer, not saying it is wrong collecting/taking this subsidy, it is just something that needs to be done to keep our COP (Cost of Production) as low as possible.

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Senior Contributor

Re: USDA cuts/Shaggy98

Shaggy98-  All I am is an Iowa Farmland owner that pays some guys $150/acre to plant, spray, and harvest my corn crop. The $150/acre pays for there labor, equipment, and fuel. I in turn buy all the inputs, pick out the corn seed, and market the corn. The only thing that makes me different from being a "REAL FARMER" is I pay guys for there labor and equipment use. Otherwise, I do the same exact thing you guys do.If you feel that these job duties don't qualify me being a farmer, then what am I? Just a farmland owner that Custom Farms? Let me know why I am so different then.

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Senior Advisor

Re: USDA cuts/Shaggy98

Good question RSW, not sure anyone can answer you. You speak like a politician (always saying the same thing over & over) and it seems your audience seems to be dwindling (like most politicians) could it be?