Sad day for this farmer

[ovrszd]

I have a friend, who is a retired dairy farmer. He spends a lot of time going to farm tours, reading up on the industry. His family got out of milking about ten years ago, and they crop farm now. He feels there are 2 marketing issues:

Competition from south America, mainly Brazil and Argentina. They have the land available for expansion, and they are improving their infrastructure, something that was lacking. The Chinese might help them with those problems.

Renewable fuel standards. If they get thrown out, the 30% of the corn crop that is going to ethanol will need a new home...

Over time, the value of farm commodities will approach cost?

I'm pretty sure we sent our technology to South America and taught them how to grow grain crops.

The percentage of grain going to ethanol has shrank. Even with governmental subsidies that industry can't survive. Iowa has shut down many of their plants. My Cousin farms near one. He still sells a lot of grain to them. It is reflected in their local grain prices which run about 30 cents a bushel higher than here. We are 170 miles apart.

 

[ovrszd]

This is correct, but if it takes a .gov subsidy to 'survive' then that really isn't surviving is it. It is charity. I grew up a farmer and rancher. Grandpa purchased 420ac in SW Colorado and we worked about 400 more. All dry land, but back in the 70s and 80s, we received enough rain to make it work. Of that 400ac, all of it has been put into CRP. After I left for college and my Grandpa got older, he quite the farming and just maintained beef. Rather than get another tenant farmer, the owners recognized they could make more money by having .gov pay them NOT to farm. My Grandpa was disgusted as am I to this day. Everyone has the Right to do what they will with their land, but the essence is the owners got money out of my Grandpa either from crops or his taxes.

I absolutely abhor .gov subsidies as they manipulate our activities to the degree that we find we cannot function without them. And all the while, we gripe about prices, the work, etc. But still cash those checks. I find the same with .gov required 'laws' such as ethanol requirement in fuel. It artificially creates a 'business' that cannot survive without the law, regardless of whether the 'law' is of benefit or not. Then when the artificial propping of the industry is no longer sustainable, it crumbles and people once again blame others, although they were happy enough to enjoy the law when it was working in their favor.

I think we all live on subsidies one way or another.

In regards to CRP, I have 70 acres enrolled. It pays an average of $147 per acre. The land will cash rent for $125. Which do you recommend that I do?

You are correct, Americans are addicted to governmental involvement in everything. We are disappointed when they don't get involved. I believe wind energy is just as corrupt as ethanol in regards to lack of sustainment without help.

I believe if all governmental control was removed from farming it would dramatically change. Yield would plummet. Price would skyrocket. Result would be dramatic.

I am willing to struggle thru that to rid Agriculture of governmental control. I'm 100% positive that city dwellers are not.

 

[Dadnatron]

In regards to CRP, I have 70 acres enrolled. It pays an average of $147 per acre. The land will cash rent for $125. Which do you recommend that I do?

Oh, I agree... given the option it is easier to put it in CRP. However, that money isn't 'free' and comes from the massive Credit Card we are using.

I think there would be turmoil in prices in the short run. But I don't believe it would remain so. I think yields would stabilize at a 'USEFUL' level in which demand and supply coexisted in a true fashion. As it is now, yields are artificially high because .gov will buy it or make a law making everyone buy it (ethanol). I think the crap food we eat with the massive processing would disappear, because the extremely cheap substrate (corn, soybeans, and wheat) would increase in value and buying that 'frozen pizza' for $3 would turn into $12 and people would likely change their eating habits becoming healthier and decreasing the massive obesity burden on medicine. (That is going to be what breaks our medical system in the next 20yrs.)

Honestly, I think NOTHING but good would come of it... in the long run. But, you are correct, those who believe their food comes from a shelf not a farm would not be so keen on actually openly paying the true cost. They pay it now... but in the form of AG subsidies, health insurance, and interest payments on the debt.

 

[ovrszd]

If this came about the small farmer would become extinct. Then huge conglomerates would control Agriculture. Yields would stabilize at the most profitable level.

My friend has told me several times he doesn't want to raise 200 bu corn and sell it for $3.50 a bushel equaling $700 per acre. He'd rather grow 50 bu corn and sell it for $14 a bushel equaling $700 per acre. His profit margin would double or possibly triple. So would the consumer cost for all products using corn including the meat we eat.

Without governmental controls that's where our yields and prices would be at today. And as you accurately stated, we would be healthier in the process.

He also states it costs $600 to grow an acre of corn not counting land costs.

 

[Larry Caldwell]

I think we all live on subsidies one way or another.

In regards to CRP, I have 70 acres enrolled. It pays an average of $147 per acre. The land will cash rent for $125. Which do you recommend that I do?

You are correct, Americans are addicted to governmental involvement in everything. We are disappointed when they don't get involved. I believe wind energy is just as corrupt as ethanol in regards to lack of sustainment without help.

I believe if all governmental control was removed from farming it would dramatically change. Yield would plummet. Price would skyrocket. Result would be dramatic.

I am willing to struggle thru that to rid Agriculture of governmental control. I'm 100% positive that city dwellers are not.

Keep it in CRP, manage for wildlife habitat, rent it out to a hunt club for $100-$200/acre. Let them stock the birds.

 

[ovrszd]

Keep it in CRP, manage for wildlife habitat, rent it out to a hunt club for $100-$200/acre. Let them stock the birds.

Not allowed to rent the crp out. Could rent adjacent acres.

 

[Creamer]

I think we all live on subsidies one way or another.

In regards to CRP, I have 70 acres enrolled. It pays an average of $147 per acre. The land will cash rent for $125. Which do you recommend that I do?

You are correct, Americans are addicted to governmental involvement in everything. We are disappointed when they don't get involved. I believe wind energy is just as corrupt as ethanol in regards to lack of sustainment without help.

I believe if all governmental control was removed from farming it would dramatically change. Yield would plummet. Price would skyrocket. Result would be dramatic.

I am willing to struggle thru that to rid Agriculture of governmental control. I'm 100% positive that city dwellers are not.

Beef cattle and sheep ranchers do not have much in the way of subsidies - about the only area of Ag that is not subsidized, guaranteed, insured, or somehow protected by the government

 

[Larry Caldwell]

Not allowed to rent the crp out. Could rent adjacent acres.

I think that's just wording. Does your contract forbid leasing hunting rights? Renting ag land is a different thing. I haven't dealt with CRP in over 20 years, but back then they didn't force you to turn it into a game preserve.

 

[ovrszd]

I think that's just wording. Does your contract forbid leasing hunting rights? Renting ag land is a different thing. I haven't dealt with CRP in over 20 years, but back then they didn't force you to turn it into a game preserve.

I've had land in CRP for 30 years. The rules have chamged a LOT. Biggest difference is with technology. Now USDA has a current view of your land without leaving the office. Maintenance requirements vary with the type of contract. Bob White Quail program requires brush piles and/or fallen trees on the plot. Pollinator program doesn't allow burning. Etc, etc. I'm not specifically positive about lease hunting. Monday I'll find out and report back.