Direct Payments to farmers/ranchers

[cpete00]

Hoping to hear GSTs thoughts on this, and any other guys in the business.

I read today that NDFU is going to ask for direct payments in addition to crop insurance to help the hard hit guys survive the year, and especially livestock producers since crop insurance doesn't help them at all. Personally, I am for it, I really don't think we need to go back to the 80s again and any money that makes it into their hands filters it's way through the community. Among other reasons I guess, but I am on my stupid phone at the moment and hate trying to type on it.

Just interested in your thoughts either pro or con.

 

[johnr]

Pro.

iffn farmers fail, we all do.

 

[guywhofishes]

one dry year and they're on the ropes?.... that doesn't make sense

 

[Vollmer]

one dry year and they're on the ropes?.... that doesn't make sense

Crop prices were terrible last year also.

 

[PrairieGhost]

one dry year and they're on the ropes?.... that doesn't make sense

Relatives the age of my kids have new toy haulers, deck boats, and new trucks to pull them. How bad is it really? I am happy for them, but are they in trouble? Can't be or they wouldn't be spending the way they do.

 

[Account Deleted]

I have a friend out by Glen Ullin that had to sell his entire beef herd. His pastures were dry, his wells were losing pressure, his hay land wasn't amounting to shit so he knew he wouldn't have winter feed either. I don't know it there is a conservative minded approach that lets him get by.

 

[Kentucky Windage]

Toy haulers, boats, etc. is painting a broad brush over farmers. Do you like cheap groceries? Have any of you year after year out up an ass load of money hoping to get it back and then some at the end of said year? Farming looks easy to some who have never actually done it.

 

[johnr]

one dry year and they're on the ropes?.... that doesn't make sense

I agree, it sure should never be this way. A number of factors fall into this equation, and some will be okay, others not.
Taxes seem to force some poor decision making, and of course very few don't operate without an operating loan, which has to have a payment made to it whether the crop comes in or not.

I think handouts are bullshit in any industry, but this was one of them programs that was engineered by them smart old politicians that has good intentions, keeps our farmers farming, but there has to be a better way

 

[Vollmer]

Some farmers don't know how to put money away on the good years. Emphasis on "some".

Most, are the hardest working people I know, and quite savvy.

 

[WormWiggler]

like any discussion of a group of people it is not fair to lay judgement on the actions of a few...

I guess if government is going to hand out money, might as well be to farmers and ranchers, but I don't buy into the "give to them, they will spend it", just what do you think anyone else would do with it, wipe their butts...

Maybe give it to the oil companies, they will spend it.... better run back to mom's basement, lol

I recall learning something about how saving money helps an economy, is than an out dated line of thinking?

 

[PrairieGhost]

Toy haulers, boats, etc. is painting a broad brush over farmers. Do you like cheap groceries? Have any of you year after year out up an ass load of money hoping to get it back and then some at the end of said year? Farming looks easy to some who have never actually done it.

No just the ones I am talking about. I realize things are dryer the further west you go.

I think handouts are bullshit in any industry,

I kind of agree with Johnr on this. I just have an aversion to some people pay in while other draw out. They should have socked some into the bank during the good years. If the years are all bad maybe they should be doing something else.

 

[Captain Ahab]

Some farmers don't know how to put money away on the good years. Emphasis on "some".

Most, are the hardest working people I know, and quite savvy.

Agreed. Some forget to put "hay in the barn". As mentioned earlier, spending their way out of taxes can be an issue when your cash flow has a problem.

 

[Stan's Dad]

disclaimer: prairiegoat and his opinions/bias are not necessarily those of all sportsman

 

[deleted]

disclaimer: prairiegoat and his opinions/bias are not necessarily those of all sportsman

I would like to think the minority share his views on ag.

 

[Fritz the Cat]

one dry year and they're on the ropes?.... that doesn't make sense

Attended an Ag Coalition meeting and afterward was listening in on two bankers. They have grave concern. Two years ago fellows borrowed money for $3200 dollar cow calf pairs. Today that same cow is $1600 w/ calf at side. Half.

OK, it's going to take a little longer for that cow to pay for herself. But wait...she can't if a fellow is forced to sell her because there is no grass no feed.

I raise more forages than grain. Keep what I need and sell the surplus. Dozens of semi loads. Not this year. Cut the first cutting and wasn't half way where I needed to be so cut all the oats for hay also. I will have zero grain or hay for sale. But I'm not forced to sell any animals in a down market so I consider myself blessed.

 

[Coyotefool69]

I'll first start off by saying I'm 28 and ranch in the heart of the drought (D4). I have put up no hay this year because our hay crop never came. We were dry last year and I had bought hay to keep my cow herd together. This year I don't think I will survive this one. It will cost me around $125,000 to buy hay to keep my cows.
Cow calf operations are hardly making money the last two years. Sure cattle were high 3 years ago, but alot of places were making payments on hay purchases from prior drought years. Packers and retailers are the ones making the money right now. The only way to fix that would be to open more packing plants to increase competition for fed cattle.
ND is expecting to disperse 45-55% of its cow herd this year. Thats not good for anyone. I'm not saying I'm looking for a handout, but it would especially help out the younger generation of ranchers. I'm not ranching to make millions I ranch because I enjoy the lifestyle.
Farmers and ranchers buy at retail, sell at wholesale and pay freight both ways.

 

[Putz ND]

Part of the game my friends - farmers lay a lot of the line, and most of it is out of their control, but anyone that's hurting financially after the last 10 years is just completely dumb, or has had a terrible run of luck.

Bankers can also kiss my ___! If they lended too much, why bail them out either? Things have been so good around here that our vision of reality is completely foggy. Cruel, but one's mistakes usually lead to an opportunity for someone else. Capitalism vs socialism.

Terrible luck in any other industry equals bankruptcy and start over. For farmers, it usually means bailout under a "cheap food premise". I don't farm, but the 1.29 pack of green beans from TSC will make my entire block of neighbors sick of green beans for a whole year. Don't give give me this cheap food crap to justify the handout.

 

[NDSportsman]

I also don't see how farmers can't make it thru the last 3 years when the 7 years before that they were trying to find ways to spend more money. Maybe they shouldn't have spent thousands of dollars ripping out trees and planting roadside to roadside. Do you really need the latest and greatest in GPS and auto steer technology to grow a crop now days? What a vicious cycle it is when people continuously repeat the past. Some of said about 10 years ago when all of the CRP was coming out and corn prices were thru the roof that it was going to be the '80s all over again but a few of the farmers on here said that'll never happen again.......uh huh

- - - Updated - - -

Oh and for those clamoring about cheap food have you been in a grocery store lately? Beef prices aren't exactly going down! Not sure who's making the money because I know cattle prices are very low but someone is collecting some cabbage.

 

[BDub]

Popcorn time!!

 

[Coyotefool69]

NDsportsman, I explained who's making money on beef right now in my previous post.