Frustrated - When you say the guru's express you have good margins, what do they mean? If you are a straight grain farm, you need to have a minimum of $125/per acre or higher to have a high margin. If you are a mixed farm you need to look at it in a different manner.
The problem with the program is many farmers (and accountants who know nothing about farming included) throw numbers at the forms to see if they stick. They don't understand the flows of the production cycle and perform tests on yields and revenue prior to sending the information in. To top it all off, most don't calculate the reference margin and payment calculation so that they can compare to what comes back from the administration. We don't handle income tax this way, why do we allow it for the program purposes?
I know this program because I have done lots of them, including my own. It is a risk management program, not a government handout. If you have no margins its because of a number of reasons, not the program itself. The design is not cover major disasters like BSE, multi year droughts etc. That is where your one off programs are supposed to kick in. Lobby for more support in those areas, not for changes in Agristability because the government won't go there. Lobby for the government to scrap adhering to the WTO so that you can get the biggest cheque you want from whatever program you need to make your farm profitable.
The fact of the matter is, some operators can manage through the disasters differently that others. So long as this happens, you are going to have people that view the program as a good one and others that view it as crap.
If your payments have been clawed back it could be that the information was not correct OR you have not calculated what it should have been. The administration makes many mistakes, there are flaws in the processing.
Just as there are flaws in the processing, there are hugh flaws in the preparers, data collection of the farmer and the historical success of the farm itself.
One thing I have learned is that relying on government support only gets you a small percentage of the loss. The bigger issue is finding a way to solve the profitability of the operation or get out while you may be ahead.
The problem with the program is many farmers (and accountants who know nothing about farming included) throw numbers at the forms to see if they stick. They don't understand the flows of the production cycle and perform tests on yields and revenue prior to sending the information in. To top it all off, most don't calculate the reference margin and payment calculation so that they can compare to what comes back from the administration. We don't handle income tax this way, why do we allow it for the program purposes?
I know this program because I have done lots of them, including my own. It is a risk management program, not a government handout. If you have no margins its because of a number of reasons, not the program itself. The design is not cover major disasters like BSE, multi year droughts etc. That is where your one off programs are supposed to kick in. Lobby for more support in those areas, not for changes in Agristability because the government won't go there. Lobby for the government to scrap adhering to the WTO so that you can get the biggest cheque you want from whatever program you need to make your farm profitable.
The fact of the matter is, some operators can manage through the disasters differently that others. So long as this happens, you are going to have people that view the program as a good one and others that view it as crap.
If your payments have been clawed back it could be that the information was not correct OR you have not calculated what it should have been. The administration makes many mistakes, there are flaws in the processing.
Just as there are flaws in the processing, there are hugh flaws in the preparers, data collection of the farmer and the historical success of the farm itself.
One thing I have learned is that relying on government support only gets you a small percentage of the loss. The bigger issue is finding a way to solve the profitability of the operation or get out while you may be ahead.
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