Do you support farm welfare?

[Herkster5]

I suppose it would be based on income tranches.

Do you realize there is already caps on FSA payments, per entity or SSN? Believe me, they still find a way around it. 3000 acres in dad's name, 3000 in my name, 3000 in my brothers, 3000 in my nephews. That 12k acres can still be a family farm operation, but if they aren't incorporated in any way, and are the listed producer on their 578s, that is the SSN that the payments are tied to.

 

[Hans81]

This is true, but there’s a lot of operations with a 2-3 million of debt with that million of equity. But I do agree, their bad decisions shouldn’t result in federal bailout money.

However, reduced farm income is not always the fault of the individual farmer. For instance, weather, foreign policy, insects, etc all are out of a farmers control so I think some type of safety net is appropriate for such an important sector of our economy.

 

[RicoSuave102954]

Color me shocked that one of the leading libs on this board Soybean stayed away from this thread like it's the plague.

 

[Hans81]

That's not fungible or maybe it is.

Farmers don’t want the huge tax bill related to a large land sale.

 

[Tom Paris]

Let’s make this simple

Not anymore.

 

[Hammerhead02]

Farmers don’t want the huge tax bill related to a large land sale.

You are special.

 

[Jimmy McGill]

How about Florida farmers who can get wiped out if there's a January like we're having this year?

Crop Insurance. Part of the business. Keep trying.

 

[Mayland]

My answer is going to be biased, because I own an insurance agency...

I believe crop insurance does need reform, but if and when it does, be ready for a giant reset in the Ag landscape. Revenue insurance is a great thing, and no, it doesn't "guarantee" you a profit, but it does limit the potential for catastrophic revenue losses. If the crop insurance program is eliminated from being a government ran program, and subsidies disappear, the repercussions of that will be one of the worst things for the farm economy, depending what gets put in place behind it.
There is exactly 0 standard insurance companies that will be able to afford to provide coverage that is even remotely similar to what is available now. Revenue insurance will disappear, and it'll be yield based only. Coverage levels that are currently available, or bushel guarantees, will be reduced to a number that, in a year like we had in our area this year, will quite literally run farmers out of business. Yes, in one year, farmers will be upside down enough that they will be selling equipment, selling land, and giving up land.
With that will come a more than 50% drop in land prices, immediately, and the fall out will be much worse. The "family farms" that you all like to drool over, will be the first ones broke. The big guys, corporate farmers, the bad guys, will scoop up that land with equity pulled from other owned acres in the blink of an eye.
Machinery prices will plummet, land prices will plummet, rent prices will plummet.

Does that mean it doesn't need changed? No, I think there are some changes that could be done to make it cost a little more, less of a subsidy, maybe limit the higher coverage levels that are available. Do I see it happening? No, not anytime soon. The lobbyist's for the farm side and rural America have so much pull. Think of what losing any subsidy or revenue based coverage will do to Corteva, DeKalb, Stine, chemical and fert suppliers, grain elevators, implement dealers and equipment manufacturers. It is such a rich ****ing industry that I don't believe they'd ever get any meaningful legislation pushed through that would make any substantial changes to what is currently in existence.

Hell, the two "area plan" endorsements to a crop policy, ECO and SCO, had the subsidy increased for 2025.

Just my opinion.

Good perspective, and I agree that there would be a pretty severe contraction of money in the overall farm economy. What’s interesting is that the Canadian farm economy runs largely without subsidized crop insurance or safety nets. And you’re right, land values are considerably lower than similar land directly across the border.
But one thing I think would happen, and we do see in Canada, is more innovation at the farmer level and lower barriers to entry for aspiring growers.

 

[funksouljon]

Crop Insurance. Part of the business. Keep trying.

Stunning lack of understanding given someone who has been around for so long. Just further that makes me think he is a mid quality troll. "Im just asking questions......" no, you are being dense at best.

 

[runkpanole]

I suppose it would be based on income tranches.

So, then I imagine that Boars Head wouldn’t qualify? Sorry, @The Tradition . Out of curiosity, what would the appropriate income be?

 

[HawkMachine]

There are no POOR farmers in Iowa.

One of the dumbest comments in a long time.

Sorry, but the truth.

 

[HawkMachine]

Most farmers are sitting on well over a million dollars of land and machinery. Not exactly food stamps.

Once again wrong.

MOST farmers rent the ground they farm.

MOST land is owned by retired individuals that rent out their land. Staying on topic, these individuals do not receive any gov payments. Unless you want to have a conversation about CRP.

 

[HawkMachine]

Or you could do a 1041 exchange. Don't feel bad for the farmer that bitches about how poor they are.

1031.

 

[HawkMachine]

Farmland in Iowa typically sells within a few weeks.

Not in today's market.

There's ground not selling at all.

Prices are down and rates are up.

Terrible combo.

 

[HawkMachine]

We sold our few acres in less than 24 hours.

Money in the bank the next day.

Maybe 2 or more years ago when farming was hot.

PS just noticed you said "few acres". Who gives a shit about a few acres.

 

[The Tradition]

So, then I imagine that Boars Head wouldn’t qualify? Sorry, @The Tradition . Out of curiosity, what would the appropriate income be?

$420K or $690K... somewhere in there.

 

[WSC72]

Maybe 2 or more years ago when farming was hot.

PS just noticed you said "few acres". Who gives a shit about a few acres.

Our neighbors with adjoining land. I get it, not the typical situation.

 

[runkpanole]

$420K or $690K... somewhere in there.

Yeah, I guess they wouldn’t qualify.

 

[Hawkfan_08]

Can I have a maybe option? I would like to see more regulation on farm runoff and cleaning up water pollution as part of a subsidy package.

 

[Herkster5]

Good perspective, and I agree that there would be a pretty severe contraction of money in the overall farm economy. What’s interesting is that the Canadian farm economy runs largely without subsidized crop insurance or safety nets. And you’re right, land values are considerably lower than similar land directly across the border.
But one thing I think would happen, and we do see in Canada, is more innovation at the farmer level and lower barriers to entry for aspiring growers.

So, I agree and disagree with the lower barrier for new producers. Right now, it is certainly cost prohibitive for someone to start from scratch or grow a newer operation without substantial family support. If they can find a way to do it, crop insurance is kind of a fail safe for them. Also, it's a fail safe for their lender, who is often sticking their neck out on these young producers who are looking to start or grow an operation.
If crop insurance was removed, while the entry point for new producers would be lower, the risk is still so damn large that without the backing of some revenue guarantee, I believe we'd see a similar issue with getting new farmers. Let's say I'm a year one farmer, and I started in 2024 with $400 an acre rent, paying someone to custom combine for me, and maybe I own a tractor and planter. I run into vastly falling commodity prices, no crop insurance, and now I have 120 bu/ac corn to sell at $4.50. I'm grossing $540 an acre, $400 goes to rent, which leaves me with $140 to cover my seed, chemical, fuel, repairs, living expenses, custom farming bills, etc. Now we are going into year 2 with 0 grain left to sell, negative equity over the whole operation, and most likely a lender that says "Uhhh, we aren't offering a line of credit to you, or extending your current one because you couldn't pay it off." Boom, rug pulled out, and we're out of business on year 2.

While this year was certainly an oddity, and if any young farmer is renting $400 acre ground, they deserve to get their ass kicked. But, it does illustrate what can happen, and how quickly it can happen.

 

[Thunderlips71]

No. Let them battle in the free market like everyone else. Ethanol is a synthetic market and would absolutely cease to exist were it not for government subsidies and mandates.

 

[Hoosierhawkeye]

Generally yes because I believe they help keep food prices down.

 

[IIowaFarmBoy]

So, I agree and disagree with the lower barrier for new producers. Right now, it is certainly cost prohibitive for someone to start from scratch or grow a newer operation without substantial family support. If they can find a way to do it, crop insurance is kind of a fail safe for them. Also, it's a fail safe for their lender, who is often sticking their neck out on these young producers who are looking to start or grow an operation.
If crop insurance was removed, while the entry point for new producers would be lower, the risk is still so damn large that without the backing of some revenue guarantee, I believe we'd see a similar issue with getting new farmers. Let's say I'm a year one farmer, and I started in 2024 with $400 an acre rent, paying someone to custom combine for me, and maybe I own a tractor and planter. I run into vastly falling commodity prices, no crop insurance, and now I have 120 bu/ac corn to sell at $4.50. I'm grossing $540 an acre, $400 goes to rent, which leaves me with $140 to cover my seed, chemical, fuel, repairs, living expenses, custom farming bills, etc. Now we are going into year 2 with 0 grain left to sell, negative equity over the whole operation, and most likely a lender that says "Uhhh, we aren't offering a line of credit to you, or extending your current one because you couldn't pay it off." Boom, rug pulled out, and we're out of business on year 2.

While this year was certainly an oddity, and if any young farmer is renting $400 acre ground, they deserve to get their ass kicked. But, it does illustrate what can happen, and how quickly it can happen.

YOu can make money on Pella soils at 400 per acre.

 

[Urohawk]

Who owns it? A family that lives on the farm or a faceless corporation?

Are you for or against Trump's corporate tax cuts?

 

[IIowaFarmBoy]

Once again wrong.

MOST farmers rent the ground they farm.

MOST land is owned by retired individuals that rent out their land. Staying on topic, these individuals do not receive any gov payments. Unless you want to have a conversation about CRP.

In Iowa it's +- 50%. In Illinois upwards of 80 percent is not owned by farmers but by generationally removed farm families.

Govt payments are reflected in rent. Govt payments can be a part of the rental rate.

 

[IIowaFarmBoy]

Not in today's market.

There's ground not selling at all.

Prices are down and rates are up.

Terrible combo.

Land sales are down and sporadic on price. Some land depending on the area and how much sold lately sells quite well.

 

[IIowaFarmBoy]

So, I agree and disagree with the lower barrier for new producers. Right now, it is certainly cost prohibitive for someone to start from scratch or grow a newer operation without substantial family support. If they can find a way to do it, crop insurance is kind of a fail safe for them. Also, it's a fail safe for their lender, who is often sticking their neck out on these young producers who are looking to start or grow an operation.
If crop insurance was removed, while the entry point for new producers would be lower, the risk is still so damn large that without the backing of some revenue guarantee, I believe we'd see a similar issue with getting new farmers. Let's say I'm a year one farmer, and I started in 2024 with $400 an acre rent, paying someone to custom combine for me, and maybe I own a tractor and planter. I run into vastly falling commodity prices, no crop insurance, and now I have 120 bu/ac corn to sell at $4.50. I'm grossing $540 an acre, $400 goes to rent, which leaves me with $140 to cover my seed, chemical, fuel, repairs, living expenses, custom farming bills, etc. Now we are going into year 2 with 0 grain left to sell, negative equity over the whole operation, and most likely a lender that says "Uhhh, we aren't offering a line of credit to you, or extending your current one because you couldn't pay it off." Boom, rug pulled out, and we're out of business on year 2.

While this year was certainly an oddity, and if any young farmer is renting $400 acre ground, they deserve to get their ass kicked. But, it does illustrate what can happen, and how quickly it can happen.

The estate tax exemption federally and the Iowa NO ESTATE TAX is a huge barrier for new blood coming into the industry. Families with ground can add more.

 

[The Tradition]

Are you for or against Trump's corporate tax cuts?

I don't know enough about the details.

However, only Congress can write a law for taxation changes so I'll wait to see what it looks like if they send such a bill to Trump for his signature.