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Posts Tagged ‘farm subsidies’
Sunday, January 22nd, 2012
In an announcement earlier this week, the U.S. Department of Agriculture announced that they were expanding eligibility for loans for beginning and disadvantaged farmers and ranchers.
Over the past several years, the average age of American farmers has been increasing, leading to a graying of the profession. In addition, while agriculture remains a major part of the American economy, the number of Americans engaged in farming has decreased, with more and more agricultural production being consolidated in the hands of large-scale agribusinesses.
According to Secretary of Agriculture Tom Vilsack, one of the biggest complaints he has heard as he tours the country is the difficulty in acquiring enough capital for new farmers to open up an agricultural business.
The new rules being considered would provide flexibility for Farm Service Agency officers to consider prior farm training (including formal and informal education) when making loans. In addition, the rules would encourage farmers and ranchers to sell their property to a new generation of farmers by offering landowners a 90 percent guarantee against losses to the seller.
Vilsack and the USDA hope that these new rules will help bring young farmers into the agricultural profession.
To learn more about agricultural financing opportunities contact a Farm Plus Financial representative by calling 866-929-5585 or by visiting www.farmplusfinancial.com.
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Written by: Justin Ellison / Farm Plus Staff Writer
Tags: farm subsidies, tom vilsack, usda
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Sunday, January 22nd, 2012
With the debate over the 2012 Farm Bill about to heat up, farmers are renewing the fight over direct farm payments and insurance programs.
With the recent austerity hysteria, Senators and Representatives have appeared more willing to end direct farm payments then they ever have before. Over the past few years, Congress has slashed funding for U.S. Department of Agriculture budgets, conservation programs, nutritional programs, and various farm subsidy programs.
With farm profits up over the last few years, many farmers are less willing to defend direct farm payments in the face of upcoming budget cuts. Instead, many American farmers are willing to trade away direct payments in order to protect safety net programs like crop insurance.
According to a spokesman for Colorado Senator Michael Bennet, a member of the Senate Agricultural Committee, “When asked to prioritize farm safety-net priorities, Colorado farmers have repeatedly told [Bennet] that direct payments take second place to strong crop insurance and disaster programs.”
Major farm advocacy groups share Bennet’s views. According to representatives from the Farm Bureau, “The Farm Bureau has moved toward endorsing more of a risk-management type policy and away from direct payments. We’re definitely willing to do our part, but we don’t want to be cut disproportional to other programs in the federal budget.”
To learn more about agricultural financing opportunities contact a Farm Plus Financial representative by calling 866-929-5585 or by visiting www.farmplusfinancial.com.
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Written by: Justin Ellison / Farm Plus Staff Writer
Tags: crop insurance, farm bill, farm subsidies
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Saturday, January 21st, 2012
Earlier this week, Secretary of Agriculture Tom Vilsack announced that the U.S. Department of Agriculture was adding more than $300 million to federal emergency funds. The money goes to supporting USDA programs aimed at helping farmers recover from natural disasters and extreme weather.
The $300 million increase is significantly more than last year’s emergency spending of about $136 million. The reason for the increase, USDA officials say, is the rise in extreme weather and natural disasters seen over the last year.
The largest portion of the money, about $110 million, is headed towards Utah and Missouri both of which experienced heavy flooding over the past year. Last spring, for example, flooding along the Mississippi forced the Army Corps of Engineers to destroy levees in southern Missouri in order to prevent flooding in major metropolitan areas in Illinois. About $50 million is going to Missouri farmers to help them recover from the damage.
Smaller amounts of money are heading across the country. In New York, for example, the USDA is releasing about $40 million to help the state repair damage to watersheds and reverse erosion that occurred in the wake of Hurricane Irene. Alabama is set to receive about $6 million to help recover from last summer’s tornadoes.
Reflecting on the wide scale nature of requests for emergency funding, Secretary Vilsack stated, “There have been years that have had more intensive damage in a particular geographic area, but what’s unique about last year is that virtually every part of the country was affected.”
To learn more about agricultural financing opportunities contact a Farm Plus Financial representative by calling 866-929-5585 or by visiting www.farmplusfinancial.com.
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Written by: Justin Ellison / Farm Plus Staff Writer
Tags: disaster funding, farm subsidies, usda
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Saturday, January 14th, 2012
In a survey done at the latest Farm Bureau Federation meeting in Honolulu, farmers indicated their hope that farm safety programs will continue in the next Farm Bill.
The past several months have been difficult for many American farmers. While commodity prices have skyrocketed, leading to record high farm profits, many farmers have experienced major losses due to extreme weather in nearly every region of the country. In addition, with the 2008 Farm Bill about to expire, many farmers are nervous due to Congress’ inability to pass the long-debated 2012 Farm Bill.
At a Farm Bureau meeting in Honolulu, farmers expressed a hope that the next farm bill will continue major farm safety net programs. Currently, the 2008 Farm Bill authorizes a series of safety programs that include direct farm payments, subsidies triggered by low farm prices, and government subsidized crop insurance.
While farmers are nearly unanimous in hoping that farm support programs will continue, there is some disagreement as to how best to maintain these programs. 39 percent of farmers surveyed at the meeting indicated that they would prefer to maintain the supports contained in the 2008 Farm Bill. About 36 percent responded that they would support switching the current system to a revenue insurance program.
The 2012 Farm Bill is set to resume debate in the House and Senate when both houses return from recess.
To learn more about agricultural financing opportunities contact a Farm Plus Financial representative by calling 866-929-5585 or by visiting www.farmplusfinancial.com.
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Written by: Justin Ellison / Farm Plus Staff Writer
Tags: farm subsidies, tom vilsack, usda
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Saturday, December 31st, 2011
As voters prepare for the upcoming Iowa caucus, the state of the economy remains at the forefront of their minds.
Like the rest of the country, Iowa is facing high unemployment (currently 5.7 percent) and a stagnant economy. As the various Republican candidates for president pass through the state, almost all of them are addressing Iowa’s, and the nation’s, economic forecast.
However, the recession has not hit Iowa as hard as it has the rest of the country. In large part, this is due to the importance of agriculture in the state’s economy. According to one Des Moines farmer, “The finances of Iowa is pretty good right now, mainly because agriculture is pretty good right now. And that ripples through the economy, whether you’re farming or not, you’re spending money because the economy is good”
Given the importance of farming to Iowa’s economy, many Iowans are particularly worried about the impact of presidential politics in the state. As such, issues like ethanol and agricultural subsidies have taken on a much larger importance in recent months.
The Iowa caucus has also injected millions of dollars into the local economy as the various candidates spend on advertising, staffing, and other miscellaneous costs. While some individuals believe that this spending greatly benefits the local economy, others disagree. Iowa’s Secretary of Agriculture recently stated, “I’ve seen studies that said [the Iowa caucus] is significant. I’ve seen other studies that in comparison to, you know, we have a 25 or 30 billion dollar agriculture economy. It’s not a huge proportion of the state economy, but we love having it here.”
To learn more about agricultural financing opportunities contact a Farm Plus Financial representative by calling 866-929-5585 or by visiting www.farmplusfinancial.com.
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Written by: Justin Ellison / Farm Plus Staff Writer
Tags: farm subsidies, Iowa caucus
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Saturday, December 31st, 2011
With 2012 fast approaching, farmers across the country are worried about the prospects of the 2012 Farm Bill. With the provisions from 2008’s bill rapidly coming to a close, farmers and lawmakers are scrambling to pass the next bill and avoid the shutdown of crucial farm programs.
Renewed every several years, the farm bill serves as a broad guide to federal agricultural policies. The farm bill consists of billions of dollars of federal spending and provides the framework for nearly every federal farm programs in existence.
Typically a non-controversial bill, the recent budget hysteria in Congress has led many lawmakers to demand major spending cuts in order to limit the growth of the federal budget deficit. This, combined with the gradual decline of the power of the farm lobby, has pushed some legislators to consider major agricultural spending cuts.
The various components of the farm bill are numerous. The largest portion, however, are a series of nutritional programs, such as Food Stamps, which take up about 2/3 of the farm bill’s expenditures. The remaining funding consists of a cluster of federal programs dealing with conservation, wildlife protection, crop insurance, research, and farm subsidies.
These programs, many farmers worry, are most at risk in 2012. While nutritional programs are slated for billions of dollars worth of budget cuts, their greater size allows them to absorb more funding reductions without endangering their basic operational goals. Many farmers worry that the defunding of conservation and subsidy programs, for example, could drastically reduce production levels and hinder American economic growth.
The 2012 Farm Bill is set to begin debate once Congress returns from its winter recess.
To learn more about agricultural financing opportunities contact a Farm Plus Financial representative by calling 866-929-5585 or by visiting www.farmplusfinancial.com.
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Written by: Justin Ellison / Farm Plus Staff Writer
Tags: farm bill, farm subsidies, Food Stamps
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Monday, December 26th, 2011
In a sudden about-face, the U.S. Department of Agriculture has decided to reinstate annual farm reports. These reports were statistical snapshots of several major farming activities ranging from hops production to beekeeping.
Several months ago, the USDA’s statistical agency stated that budget constraints would force the elimination of the agency reports. Over the past year, the USDA has faced several major budget shortfalls as politicians looking to reduce the federal deficit have repeatedly slashed their federal funding.
The proposed elimination of the reports created an outcry by farmers who rely on that information. Many farmers use statistical information to govern what crops they plant, taking advantage of low supply to maximize their profits. Others use that information to negotiate crop loans and bank loans.
The fight over statistical reports is larger than individual farmers. This recent budget fight is part of a longstanding effort to defund major agricultural programs. In addition to USDA budget reductions, farmers are facing the end of many major farm subsidies and the elimination of vital conservation programs.
Together, these budget cuts seem to indicate that Congress is willing to disproportionately place supposedly shared burdens on the backs of American farmers.
To learn more about agricultural financing opportunities contact a Farm Plus Financial representative by calling 866-929-5585 or by visiting www.farmplusfinancial.com.
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Written by: Justin Ellison / Farm Plus Staff Writer
Tags: farm statistics, farm subsidies, usda
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Saturday, December 17th, 2011
Year-end estimates for 2011 seem to reaffirm that farm profits have reached record highs. According to U.S. Department of Agriculture estimates, farm profits are expected to rise nearly 30 percent to over $100 billion. In addition, the USDA estimates that farmers will have about $100 billion cash on hand to pay bills, a first in agricultural history.
The causes of these remarkable profits are primarily increased demand for staple crops like corn and soybeans. Increased demand from overseas buyers, such as rapidly developing China and India, has caused crop prices to skyrocket. In addition, increased demand for corn due to recent increases in ethanol production has further fueled this rapid growth.
That’s not to say that the picture remains rosy for everyone. Many farmers across the country are still recovering from a seemingly unending string of poor weather, which has brought some farmers to the brink of bankruptcy. In addition, American consumers are grumbling at the farm profits, largely due to increased food prices they are experiencing at grocery stores.
Finally, these record profits could serve as a double-edged sword, simultaneously enriching farmers while undermining public support for federally funded farm programs. In the midst of an austerity fever sweeping Congress, agricultural spending has been a frequent target of politicians looking to reduce the deficit. High farm profit only serves to fuel, however unjustly, efforts to defund vital farm subsidies.
To learn more about agricultural financing opportunities contact a Farm Plus Financial representative by calling 866-929-5585 or by visiting www.farmplusfinancial.com.
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Written by: Justin Ellison / Farm Plus Staff Writer
Tags: ethanol, farm profits, farm subsidies, usda
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Sunday, December 4th, 2011
With the death of the congressional Super Committee, efforts to renew the Farm Bill have hit a wall. Acknowledging the near impossibility of crafting new legislation by the end of the year, House and Senate agricultural leaders have postponed the final debate until 2012.
However, some farm lobbyists have offered predictions about what the 2012 Farm Bill might look like, and many of their forecasts are gloomy.
A major point of contention in the proposed Farm Bill was the $23 billion in agricultural spending reductions. Many critics complained that those cuts came disproportionately from nutritional programs and conservation programs while leaving intact major federal subsidies for the corn and soybean industries.
Many experts have predicted that these major cuts will remain in place and could even increase. The House and Senate Committees are likely to use the $23 billion cuts as the starting point when they take up debate again next year, meaning that more cuts could be added, further reducing federal support for major agricultural programs.
However, one of the potentially positive results of the failure of the Super Committee is the end of congressional secrecy. According to Pat Roberts (R-Kansas), the ranking member of the Senate Agriculture Committee, “the chairs of the House and Senate Agriculture Committees have worked on a farm fill proposal, largely without my input and the input of the other members of the two committees. The last proposal was so ’secret’ that I still have not seen final legislative language and scores.”
Some commentators have speculated that major crop lobbyists, who hoped to foist spending cuts onto other programs in order to preserve their subsidies, pushed this secrecy. While it is no guarantee, some farm advocates hope that increased transparency may result in a fairer distribution of austerity burdens.
To learn more about agricultural financing opportunities contact a Farm Plus Financial representative by calling 866-929-5585 or by visiting www.farmplusfinancial.com.
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Written by: Justin Ellison / Farm Plus Staff Writer
Tags: farm bill, farm subsidies, Pat Roberts
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Sunday, December 4th, 2011
With the holiday season upon us, state agriculture departments across the country are urging consumers to buy locally. In particular, they are urging consumers to buy local Christmas trees.
The Christmas tree industry has been struggling over the past several years. Growers have been hit hard by the recession. As consumers tighten their belts and reevaluate their budgets, many have decided to forgo Christmas tree purchases entirely. In addition, many consumers are spending less on trees and many more are choosing cheaper, artificial trees instead.
Buying locally, however, is better for the environment and better for local economies. The Maryland Department of Agriculture has issued a statement claiming that, “Buying a locally grown tree is much more environmentally sound than buying an artificial one. Fake trees are usually petroleum based, imported from overseas and do not biodegrade so they eventually end up in landfills forever.”
In addition to environmental concerns, buying locally helps family farms in the area and pumps much needed cash into local economies.
This emphasis on local agricultural production is nothing new. The U.S. Department of Agriculture has been urging consumers to buy local produce for years. In particular, their Know Your Farmer, Know Your Food campaign has stressed the benefits of establishing local ties with farmers.
To learn more about agricultural financing opportunities contact a Farm Plus Financial representative by calling 866-929-5585 or by visiting www.farmplusfinancial.com.
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Written by: Justin Ellison / Farm Plus Staff Writer
Tags: Christmas, farm subsidies, tree farms
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