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Everybody has heard of Peak OIL, what about Peak Entitlements?
17 TRILLION DOLLARS of debt by just the Federal Government, not counting all the state and local government debt.
How can this continue, will it continue? During the last government shut down, the federal government was not collecting enough money to pay the interest on debt and payroll of federal employees. I know it is fall and the majority of taxes are paid from January to June, but talk about negative Cash Flow.
What does this mean for Farm Program Payments?
Farmers need to realize this fact, if you own free and clear a relatively new combine, you have more net worth than the average American. Yes, farmers and ranchers have always been asset rich and cash poor, but the average farmer has put miles of distance between themselves and the average American when it comes to net worth.
In the last 5 years especially Farmers and Ranchers have seen balance sheets explode to the upside, while the average American has gone backwards. Now the fight over whether to reduce food stamps, which also have seen spending explode to the upside, and “you are only going to reduce farm program spending to some of the richest (asset wise) people in the nation”?????
In the future I think we will have to fight very hard in the political arena just to keep crop insurance.
Another program area I think will face more cuts in the future is conservation. As I have been told before “your spending how much so a bunch of rich white guys can partake in their hunting addiction”. I don’t agree with that statement, but that has been said to me before. Try this one out “If you can’t afford to take care of it, you can’t afford to own it” and “selling it now would get you a very high price”.
Let’s face it these United States have borrowed a tremendous amount of money, without even counting what the Federal Reserve has done. It will probably come back to haunt us. Farm programs will be alone in the cuts, but they will be cut. Remember budget deal only kicked the can down the road. Another round of sequester cuts come into effect at the beginning of 2014. Obamacare costs are going to rise.
Progressives say just wait until the baby boomers get through the system (die off) and entitlement spending will go down. Tea Party wants to not only balance budget, but pay off the debt. I just know agricultural spending is going to go down in the near and distant future.