045 – So how are they going to compete?

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Farm Podcast

How does a young beginning farmer that is not part of or joining a large Farm And Ranch Countryalready running operation acquire land to farm? Grain farming especially is very,very profitable right now.  Land continues to be “locked” up by large to very large operations.  So how does a young person get started right now?

Of course the government is talking the same things it has done for years and farms just keep getting larger.  Social engineering farm groups continue to complain just like they have for years.  So how do you get started?

Many mid-sized, middle-aged operations continue to loss ground to the mega-farmers.  So how does this mid-type guy survive?  Not too far away from me a mid-sized farmer lost over 400 acres to one of the mega cash renters.  How do you plan on competing with the mega cash renters if you farm in the Midwest? 

I even know of a Co-Op that is re-structuring.  This local Co-Op is trying to leave one parent Co-Op for another one.

Young farmers used to start with livestock.  Can you do that anymore?

Can the government help?

Control of land is where it is at.  For 95% PLUS OF PRODUCTION AGRICULTURE, control of the land or how a farmer controls the land is key.

How are you going to compete in the future?????

 

4 Comments

  1. fedup said:

    In order for the havenots and the haveless to have any chance of competing in the ag business congress has to eliminate the federal crop insurance scheme. With this scheme congress has mindlessly targeted the wealthiest farmers with an overwhelming and perpetual prosperity that very effectively eliminates any competition from smaller farmers. The highly subsidized multimillion dollar investment and profit insurance policies congress has been fixated on providing those who are already the most financially competitive, leaves no room for the havenots and the haveless to compete. Also beginning farmer programs by congress have proven to be highly effective in growing larger farming operations as in 99.9% of the time the poor sons of large farmers are obviously more effective at farming the program than are the poor sons of poor individuals. Why not eliminate these programs and place all want to be farmers on the same level playing field? What is the point of highly subsidizing the growth of the already largest families farming operations with beginning farmer programs? Why is it that no one acknowledges that the end result of most farm programs is opposite of the stated intent? Where are the congressional hearings on this issue? No one should be so dumb not to see the money some recieve ends up in the pockets of congressional leaders via campaign contributions. Until leaders are willing to be statesmen and not politicians this cycle of tax dollar waste will not end.

    February 5, 2012
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  2. fedup said:

    Congress has designed farm programs that target those who rent or own the most acres with the greatest dollar benefits. Those with the most receive the most. Those that have nothing have to compete with those who are given the most if they want to get into the farming business. Congress has also designed many of these programs based on crop yields and market prices. In many cases (federal crop insurance in particular) those with the most acres receive still more if crop yields are higher and if market prices are higher. It doesnot have to make any sense as congress has designed it. It is like your local Walmart store receiving billions in government aid and the small mom and pop stores receiving a few pennies in government aid.

    February 6, 2012
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  3. Bill Graff said:

    Thank you for your comments. My guess is that crop insurance is going to change in the future. Probably not this farm bill, but by the next one I believe some major changes could happen. GRIP insurance will probably be the first type to be eliminated. It also would not surprise me if a limit was placed on how much (total dollar amount) money an operation could receive in crop insurance premium subsidies.
    The old Farmer Home Administration type programs will probably stick around for awhile. One reason is they do not cost much for the government to offer, and it makes it look like the government is doing something to help “young farmers” to get started. The government also has “special” fund amounts set aside for certain groups it calls “socially disadvantaged” Examples of which are minorities and women.
    Many of your comments are very good observations of the current programs. My last comment is that the access to land to farm is the biggest barrier to entering farming. Not credit, not the farm programs, but access to land, which in today’s world means you have to “pay to play”. High cash rents are making it extremely difficult to rent ground with any hope for a profit, unless everything goes exactly right. This is the main reason banks, other farm lenders, and input suppliers love crop insurance so much. They will get paid back.

    February 7, 2012
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  4. fedup said:

    If everyone thinks it will take decades to place a fatal knive in the federal crop insurance scheme it probably will. On the other hand if political pressure builds, the larger farmer larger government guaranteed investment and profit scheme can face its demise alot sooner. For years we have been conditioned to think that dependency on the larger farmer larger guaranteed investment and profits scheme is a credible government policy. Now many are realizing that 2 or 3 farmers per county is not good for rural America. Now is the time to push for an end to this obscene and despicable display of chrony captialism that has played a major role is the demise of our small schools, small towns, and rural communities

    February 8, 2012
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