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Frequent Contributor

subsidies

Still getting my head around all the below posts,but don't they distort the market and send wrong messages. I'm I wrong but can people grow crops which will pay most insurance which to me so t right. Thinking you guys want me to hibetnate
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16 Replies
Senior Contributor

Re: subsidies

Our history books tell us that nearly every successful nation since at least the ancient Egyptians has had a policy to ensure a cheap and stable supply of food. In fact any government which fails to have such a policy is not likely to remain in power for long. In this country nearly all farm program resources including subsidies, insurance, set aside acres, and research funding are directed at ensuring a cheap and reliable supply of food. And shockingly to some, they have been relatively effective at meeting that goal. As farmers, we do not make the rules or set the policies. As long as one is following both the intent and the letter of the policy rules, I fail to see that anyone has a legitament reason to complain about that farmers behavior.

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Frequent Contributor

Re: subsidies

not sure if im envious or dismayed.....

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Honored Advisor

Re: subsidies

I agree with hanktbd.  In US some of the reason for federal intervention(or subsidy) is to stabilize the economic "feast or famine" cycles.  Economic depression in food production in the 1930's here and in eastern europe in the 1920's created a need to give food production some stability in depressed times.

Since the 1950's it has taken many forms and for the most part been successfull.  We have lost small farmers to retirement and farm sizes have grown but that deals more with inovation and farming practice changes than market fluctuations.  The 1950's, 1980's, and now the last few drought years, have taken out some farms caught in economic stress but the overall intent of stabilizing production has worked fairly well.  

 

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Frequent Contributor

Re: subsidies

wish our politicians and taxpayers cared about us aussie farmers like yours do

we get suff all help a fuel tax rebate which is 38 cents per litre used in agriculture gas and diesel basically its not used on roads so we get the road tax part of our fuel back

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Re: subsidies

Hardwheat, you're just fine.

 

US farmers' balance sheets are strong and they'll plant virtually everything that gets planted under an insurance guarantee regardless of whether it's there or not- assuming the price dictates.

 

Actually not having the insurance backstop on marginal acres is a nice market suport mechanism (its called a free market) should stocks ever become burdensome again.

 

But you can enjoy the rationalizations of why, while our government is merely a mechanism of economic repression that takes from the rich and gives to the poor, it is a matter of national security that the few tens of thousands of producers who get most of the benefits continue to.

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Veteran Contributor

Re: subsidies

Hard wheat

Don't believe the cheap stable food argument as a reason for subsidies. All the subsidies do is drive up the COP and entrench the old asset rich farmers like the guys who have time to post on Ag.com. Crop insurance is killing the small guys at the expense of the bankers and the crop input suppliers. How can young guys compete against guys with million dollar guarantees. By working 25 hours a day The whiners will come on and complain that they need the crop insurance to pay 400 dollar an acre land rent and buy new green paint to supply cheap food. Ya right!
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Senior Advisor

Re: subsidies

Dismal, I'm far from a BTO, and I hold a full time off the farm job. My farm supports itself and I run it debt free. My newest paint is going on 14 years old I have no employees. Are you saying I'm milking the subsidy system just to keep going? Subsidies are nothing more than a tool in the tool box, and like every other tool in there some get misused by a few from time to time. Don't let a few misusers create your image of those receiving subsidies.
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Highlighted
Veteran Contributor

Re: subsidies

No Shaggy I'm not saying you are milking the system.   But if land was cheaper and you didn't have to go up against the BTO who are milking the system then you might be able to accumulate enough land to quit that job.     There is no way a guy can start from scratch with the current subsidy system.   Hell the BTO's can pass their APH on to their kids.   How's a guy with no land base gonna compete with that.   

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Senior Advisor

Re: subsidies

Point taken Dismal and I understand. That thing is happening around here as well. Had that very conversation with one of my neighbors this past Sunday. I'm not looking to increase my land base at this time, I'm going to attempt to improve the acres I've already got. Quality is a substitute quantity, but not vice versa. Just my opinion of course.
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