056 – There is no “Middle” anymore

Posted on May 8, 2012 by Bill Graff 2 Comments
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Leave a voice comment by clicking on the microphone on the right of the screen. I might put it in the next podcast.

What do I mean by the “Middle”?

The middle ground is where much farm policy has been made in years past.  Now in many No Middle Groundarenas, especially politics the middle is losing ground to both ends of the spectrum.

This has huge implications for commercial production agriculture in the future.

Not just with farm programs, but in regulations, taxes, public opinion of farmers.

What type of food production consumers actually want is moving out of the “middle”.

Will there be opportunities, yes, but I see the downside for most of us as being greater.

Many things are changing for agriculture, but are the god times, so good we are not seeing what is coming at us.

Even at times I think agricultural producers have no middle ground with each other anymore.

Lots of information on what I believe is the biggest topic not being talked about in agriculture today.

Maybe my most important podcast to date.

Josh Flint

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055 – 2012 Farm Bill – The South Rises again/did Corn over reach

Posted on April 28, 2012 by Bill Graff Leave a comment
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The South, Peanuts, Rice and to an extent Cotton rose up and at least for now, South stops farm bill proposalopposed the Senate Farm Bill proposal.

Senators from the south, and yes Republican Senators are speaking out against what they see as a lack of an equitable program for southern crops.  Namely rice, peanuts and to a certain extent cotton.  Saxby Chambliss – R Georgia, and John Boozman -R Arkansas.  I also find it interesting that Larry Combest, former House Agricultural Comm. Chairman helped organize the letter that opposed the Senate Farm Bill Draft, at least for now. Cochran – R Mississippi, and the Republican Senate leader McConnell – Kentucky also voted against the bill.

Where are you going to find the money to make them happy?

Is there enough Political will to keep a form of Direct Payments for them, or raise target prices like they would like ?

Farm Bill fight is still Regional not political, at least not yet.

Stabenow and Roberts did not have their bases covered.  That is surprising to many observers.  Things like this do not generally move unless they have broad support.

This Southern Slowdown of the Farm Bill will make it that much harder to get anything done before the 2012 election.

I am not saying they should not have done it.  They need to do what they think is best for their farmers.

Stabenow did change some things to placate two very powerful democratic senators from North Dakota and Montana.  One chairman of the Finance comm., the other chairman of the Budget comm.

Did the corn growers over reach?  Will all this support for corn, be used against ethanol, etc., at a later time?

It looks to me corn got everything it wanted and then some in this Senate draft.  So, does this mean since there are around 300,000 corn farmers and 5,000 rice farmers, corn should get a better deal.  Now I know a lot of corn producers will say the payments going to crops down south have dwarfed what ever corn and or soybeans have gotten in the past, but corn also gets a lot from the ethanol backing by the feds.

Now the process goes to the house.  This is where the real fight is.  Senate Bill is what I think the Ag Committee in the house will start from, but will Lucas go along?

Getting a Bill out of the Senate Ag committee is a start, and increases the odds a farm bill will be done before the November election, but this by no means is  a sure thing.

 

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054 – 2012 Farm Bill Senate Draft

Posted on April 25, 2012 by Bill Graff Leave a comment
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Senate Agricultural Committee has sent a Farm Bill to be “Marked Up”.

A bill mark up is where a committee goes over a proposal and “marks up” the paper with Farm billchanges.  But, the major stuff has already been decided in the Senate Agricultural Committee.

$23 Billion in budget cuts over a 10 year period.  Major component will be the Agricultural Risk Coverage Program – the same thing that purposed during the “super” committee debate last year.

I go over many of the details of this program.

Cotton growers get their “STAX” program.

A new specialty crop program, Supplemental Coverage Option.

Conservation, food stamps, Dairy, etc. programs are discussed.

I also further discuss where the house agricultural committee is at and doing with the farm bill.

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053 – 2012 Farm Bill Update

Posted on April 24, 2012 by Bill Graff Leave a comment
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I discuss many of the twists and turns that could happen before a farm bill Farm billwill be completed.

John Boehner leader of the house does not want a farm bill discussion before the election.  He does not want Republicans fighting each other before the election.  I go through all the factions in a farm bill debate.

World Trade Organizations and problems with parts of the farm bill.

Crop Insurance is under attack.  Environmental Working Group and others really do not like privately administered crop insurance.  EWG funded a “study” by Bruce Babcock a professor at Iowa State University that takes major hits at crop insurance.

Not all agricultural groups are united in what they want in the next farm bill.

Is the number to cut 23 billion or 33 billion?

Big discussion on Food Stamps and how much the program has grown in the last 10 years.

If there is no farm bill is an extension of the current bill possible?

Dairy – I have a good idea what will not be able to pass the house, so what will the policy be?  Nobody may know the answer to that.

Conservation – there will be some reductions and consolidations, but where and how much?

Other Factors – Where will commodity prices at? Drought or surplus crops, either extreme has implications for a farm bill.  EWG – just what is their game?  Food stamps and attempts to rein this program in could spill over into other areas of the farm bill and gain or lose votes on the final passage of a farm bill.  2012 presidential election will have effects this summer and fall on the farm bill debate.  Senate and House election also will have big effects.

Possible Government shut down right before the election?

Government workers “partying” cold and will affect everything the government does as long as people remember what has went on.

Senate is moving fast. I always thought Senate would move before the House.  When politicians want something done and they all agree on it, it can happen fast.

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So lower the Secretary’s tax rate

Posted on April 13, 2012 by Bill Graff Leave a comment

Well, President Obama pays a lower tax rate than his Secretary.  Of course, same thing for multi – billionaire Warren Buffett.  And, at least they made more so much more money that they paid more total tax.

And one more thing, since Obama did not make a million dollars, he only made a little over $700,000, he does not qualify to pay his much promoted “Buffett Rule” additional tax.

My solution is a very easy one.  Lower the tax rate on the secretaries!!!!!!

This is so simple to do.  I have long believed that the “trust fund” rich, oh how I do not like that description, but for lack of a better one, I will use it.  They have used tax policy to limit competition for them to not have to compete for assets with the hard working people in this country.

These “people” have already made their fortunes.  A lot of these “families” then use charitable trusts and foundations to get around “the rules”, legally of course.  And, since the working man if he ever got ahead would then be competition for them, lets tax the heck out of “ordinary” income, hard work income in my view, and keep “them down on the farm”.

That is why I favor a low flat tax rate with no deductions.  If you then want to work hard, save much, and live on very little, you could get ahead.  But, with the high taxers keeping the working man down, how do we get ahead?  We don’t by design, the ones on top want high taxes so they do not have any competition.

So, my view is that a low flat tax would help the hard working people the most.  That my friend is a true populist position.

 

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