U.S. farmers set for huge government payouts despite bumper harvest!

[foragefarmer]

Hopalong

How can you compare Agristablity to the USA farm support program. Their's is based on the price per bushel being the deciding factor. As stated below

In August, USDA forecast subsidies for the 2014 crop under the farm bill’s Agriculture Risk Coverage (ARC) and the Price Loss Coverage (PLC) programs would be $762 million, using $4.20 per bushel for corn as an average market price for 2014. It put average annual payments over the lifetime of the bill at $5.7 billion.

USAD predicts corn to average $3.20 -3.80 for 2014 crop.

Payments will definitely be made to US farmers. Can you say the same for Agristabilty

Agristablity does not make payments based on per bushel floor price being set by Agriculture Canada. There are many other determining factors we all know this.

Hopalong
I have to wonder where your coming from, as you have also posted you are in favour of eliminating the Revenue Cap for the railways.

[Hopalong]

Farmed through many years of the great crow debate.
Farmers said we would never lose the original rates, supposedly guaranteed in perpetuity.
Later they said we could not operate without freight subsidies paid to railways.
Think we are foolish to believe the revenue entitlement agreement will be different.
As to AgriStability, see US and Canada moving toward more similarly in rik management programs.
What is your view?

[bucket]

Well let's see the price if wheat is down and so is production in canada.

The US farmers already know there are poo ament a coming.

In Canada even though we have paid the agri stability bill we won't know shit for another year and some will be forced out before the payments are calculated.

Don't twist it to say the two countries are moving towards parity for farm programs. That's just bullshit.

[bucket]

I meant to say payment are coming in the states.

[Oliver88]

My view is Scrap Agristability.
Divert those funds to crop insurance or agri invest. Crop insurance is a solid program as well as Agriinvest.

[bucket]

Do you guys ever find it odd that railways are prepaid for their work and still won't provide adequate services?

[Hopperbin]

Forage you said this

Hopalong   How can you compare Agristablity to the USA farm support program. Their's is based on the price per bushel being the deciding factor. As stated below  In August, USDA forecast subsidies for the 2014 crop under the farm bill’s Agriculture Risk Coverage (ARC) and the Price Loss Coverage (PLC) programs would be $762 million, using $4.20 per bushel for corn as an average market price for 2014. It put average annual payments over the lifetime of the bill at $5.7 billion.   USAD predicts corn to average $3.20 -3.80 for 2014 crop.  Payments will definitely be made to US farmers. Can you say the same for Agristabilty   Agristablity does not make payments based on per bushel floor price being set by Agriculture Canada. There are many other determining factors we all know this. 

Usad is forcasting the payout based on the price of grain times bushels grown. Exactly the same system as agstab. If we in canada forecast our payments it would come out similar based on production times price minus margin averaged out over so many past years of performance etc so exactly the same. Every farm in canada and usa are treated on a farm by farm basis. Inventory price is valued at a certain time based on average price of it before new crop. The usa has moved away from per acre payments every year to revenue ins. Seems they have adopted our system. Was here first.

[bucket]

The first thing you need in this country is an ag minister that wants to set up policy from farm support to rail issues that has ounce of intelligence to forward think through the "what ifs" and how they impact each other.

We don't have that nor the staff in Ottawa that understands where we are going.

Vision is key to thinking through the impacts on rail from other competing industries.

No one has even addressed the impact of two new potash plants on rail service and the required capacity and the effects on other products requiring that service.

All industry stakeholders should sit down with government and railways to map a plan going forward the next 50 to 100 years.

This piecemeal fixing and just in time delivery is nearing its death in providing services going forward because the infrastructure can no longer handle it.

[bucket]

So hopalong where are the canadian calculations for what will happen here considering we are short on price and yield ?

There isn't one because the government here will change the parameters of the program again like they have in the last few years.

[Hopperbin]

That is possible bucket but I dont think it wise to advertise a huge govt payment in canada thank christ But probably will happen. Is this payment Into crap ins and agstab going to be transparent?

[foragefarmer]

Hopperbin

They have just had a bumper crop and they will be getting a payment. Agristablity tends to kick in more in years when production is down more than anything, in other words crop failure. Ag Canada has also changed the calculation formula two years ago which makes payment even harder to trigger. So I don't agree with you on this point that we are similar.

Ag Canada has also made AgriInvest less attractive, by reducing the percentage amount they will match.

As for this current Con government, there is no way in hell there will be some sort of Ag bailout when they want a balance budget for 2015 to get re-elected. The public would never by it, as there were good prices the prior three years with a record crop in 2013.

[Hopperbin]

We had or most of us the bumper last year. This year prices are down. This year usa had bumper but prices down. So under the same program we are better off. All farms considered under a their own profit margin. Jd green should be able to buy 2000 acres just by his agstab ins. 5 years record crops. Its not perfect. I have to givee him a fishing trip if he visits klausette verbal agreement. World is not fair.