Farmaholic totally correct. I had an ag stability guy describe the details as they were modifying the program. After one cup of coffee I stated " with all these cuts in qualifying expenses and the severe reduction on the revenue/margin side, it will be fing near impossible for even the most productive farmers to collect if things go really bad". Thats when I got the hesitant "well...yes."
The program was to encourage proper building of margin protection with production volumes etc. weather agreed, and it was working well. BUT THEN......market prices went up. Margins got built very well. The govt could see they could not pay out that kind of money to farmers in the case of a weather disaster. Taxpayers would be wailing from the rooftops.
Bucket, I hope you are wrong. I recall a nasty hangover morning in university listening to Dr. Red Williams describing the perils of GATT, LDP, NAFTA etc. I started farming in those years, with no backup, I was pretty skinny for a long time. 12 years I would easily say. Competing with the US LDP programs, and a "glut" of corn.
Aaaahhh, the bad old days. I sure hope history does not repeat itself. That was waaaaay to crappy for me to do it again.
The program was to encourage proper building of margin protection with production volumes etc. weather agreed, and it was working well. BUT THEN......market prices went up. Margins got built very well. The govt could see they could not pay out that kind of money to farmers in the case of a weather disaster. Taxpayers would be wailing from the rooftops.
Bucket, I hope you are wrong. I recall a nasty hangover morning in university listening to Dr. Red Williams describing the perils of GATT, LDP, NAFTA etc. I started farming in those years, with no backup, I was pretty skinny for a long time. 12 years I would easily say. Competing with the US LDP programs, and a "glut" of corn.
Aaaahhh, the bad old days. I sure hope history does not repeat itself. That was waaaaay to crappy for me to do it again.
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