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2023 farm bill

IowaBowHunter1983

IowaBowHunter1983

Well-Known Member
Staff member
As most know the current farm bill is expiring. There was ALOT of chatter on the 2018 farm bill. This go around seems much quieter.

Alot of issues go into it. Most farmers are concerned about the safety net programs. I am always most interested in what they do with CRP.

What are folks hearing?
 
I saw a snap shot of vilsak and grasley in agreement to cut CRP rents from 85% of county rent average to 75%. Can't remember where I saw that but def raised an eyebrow.....
 
DMarley83 said:
I saw a snap shot of vilsak and grasley in agreement to cut CRP rents from 85% of county rent average to 75%. Can't remember where I saw that but def raised an eyebrow.....
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I thought they were trying to increase acres enrolled to meet the acre limits? Lowering payments will make it harder to do for sure.

I have transitioned over the past 14 years from wanting to put most of what I bought into crp initially, to now only putting acres into crp that are unfeasible to crop.
It's a pain in the rear, and is expensive, to try and keep crp clean between volunteer trees, erosion, thistle, etc.
 
8bitnes said:
That would actually raise most CRP payments quite a bit. We will probably be breaking ours up to farm ourselves when the contract comes to renewal.
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I'm not following. They are currently calculating rates at 85% of county cash rent. Dropping to 75% is a reduction.
 
IowaBowHunter1983 said:
I'm not following. They are currently calculating rates at 85% of county cash rent. Dropping to 75% is a reduction.
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For those who enrolled say 7 years ago when cash rents for the county were say $250/acre we would be getting around $212.50 for CRP. We are locked in at that until our contract expires.

Now that cash rents have jumped to say $350/acre even at the smaller percentage we would get a nice jump to $262.50. $50/acre increase is quite a bit for the stuff we plan to keep in CRP
 
8bitnes said:
For those who enrolled say 7 years ago when cash rents for the county were say $250/acre we would be getting around $212.50 for CRP. We are locked in at that until our contract expires.

Now that cash rents have jumped to say $350/acre even at the smaller percentage we would get a nice jump to $262.50. $50/acre increase is quite a bit for the stuff we plan to keep in CRP
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Right but I'm sure you would prefer 297.50. People on the fringe of deciding to enroll or not 75% from 85% could be a big factor.
 
With the speaker of the house craziness it doesn't sound like a new farm bill is going to get done. So, looks like the 2018 farm bill will be extended one year into 2024.
 
This is not going to be a friendly comment to most but the crop insurance subsidies need to be DRASTICALLY cut but it won’t happen! One of the biggest reasons we are loosing CRP, pasture and trees in many states!! And I farm but if average tax payer realized how many dollars of subsidy through crop insurance the multi-millionaire farmers receive every year they would be MAD. I am in lending and somewhere skip made the comment that farmers pay a lot in income taxes and more than the subsidies they receive. I look at A LOT of tax returns big to small and 90% plus pay less in tax than I do with my salary and my net worth is a fraction!
 
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Read this earlier today: Source Link
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Muskrat24 said:
This is not going to be a friendly comment to most but the crop insurance subsidies need to be DRASTICALLY cut but it won’t happen! One of the biggest reasons we are loosing CRP, pasture and trees in many states!! And I farm but if average tax payer realized how many dollars of subsidy through crop insurance the multi-millionaire farmers receive every year they would be MAD. I am in lending and somewhere skip made the comment that farmers pay a lot in income taxes and more than the subsidies they receive. I look at A LOT of tax returns big to small and 90% plus pay less in tax than I do with my salary and my net worth is a fraction!
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Most farmers I know say they would be all for this as long as it's equal for all.
The price of land and land rent is severely impacted by subsidies that basically guarantee an income.
 
FYI... I tried to go do some CRP stuff today. Locked out. FSA office said they can't do anything with CRP cuz they don't have a farm bill. Neato.
 
Same boat here. Called yesterday. Really ticks me off. Was counting on enrolling some. Figured I’d call back in a couple weeks.
 
Muskrat24 said:
This is not going to be a friendly comment to most but the crop insurance subsidies need to be DRASTICALLY cut but it won’t happen! One of the biggest reasons we are loosing CRP, pasture and trees in many states!! And I farm but if average tax payer realized how many dollars of subsidy through crop insurance the multi-millionaire farmers receive every year they would be MAD. I am in lending and somewhere skip made the comment that farmers pay a lot in income taxes and more than the subsidies they receive. I look at A LOT of tax returns big to small and 90% plus pay less in tax than I do with my salary and my net worth is a fraction!
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I don't think net worth should have much to do with income tax. If a guy owns just a 160 in many areas of Iowa then that alone makes his net worth at least 3.2 million. Mostly because of bad policy. I don't think most farmers want a high net worth, particularly if it's just because of artificially inflated land values.

And get rid of subsidized crop insurance!
 
Muskrat24 said:
This is not going to be a friendly comment to most but the crop insurance subsidies need to be DRASTICALLY cut but it won’t happen! One of the biggest reasons we are loosing CRP, pasture and trees in many states!! And I farm but if average tax payer realized how many dollars of subsidy through crop insurance the multi-millionaire farmers receive every year they would be MAD. I am in lending and somewhere skip made the comment that farmers pay a lot in income taxes and more than the subsidies they receive. I look at A LOT of tax returns big to small and 90% plus pay less in tax than I do with my salary and my net worth is a fraction!
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All for it!!!! Reduce or eliminate it!!!!
To clarify- what I was saying was this…. Farmers pay a buttload in taxes or “contribute to the system”…. They are not the % of this country that sits around & get: EBT cards, free healthcare, free housing, unemployment or welfare checks, on & on. Do they get some “freebies” or tax breaks like most any sector? YEP! It’s nothing CLOSE to companies like google or Amazon, etc etc though.
& we gotta remember …. MOST farmers don’t “kill it” every year. The giant ones & top 1% sure. But there sure isn’t a farmer that became a billionaire like in other businesses. Overall - their NET worths are far less than most other sectors. Usually their worth is in the land they have no intention of ever cashing in. & I assure anyone- they have headaches & work loads that are insane in many years. OR- multiple years in a row where they work all year & make $0!!!! Or lose $!!! It’s a big cycle for their income. Any other job or sector- if someone said “u will work & get paid $0 for next 3 years” - u would be screwed or find another profession.
Now- when u work “35 years” & now multiple farm loans are now free & clear- u start raking it in for SOME folks. That’s after u bought a pile of farms with 20 year loans (which probably takes 1-2 decades to get those farms bought & then another 20 to pay em off). Millions in equipment, lots of stresses & big swings from good times & bad times. Those at bottom to middle have rough time when it’s “tough times”. We had it 2015-2020…. There was a pile towards bottom barely hanging on.
GUYS ON TOP…. Great ground, paid off… almost always immune to bad times. Killing it!!! But that’s sure not everyone!!!!! & those groups exist in all walks of life & sectors. & absolutely- reduce government subsidies!!!! I personally think we should change it so - new farmers get subsidies for maybe 10-15 years. After that- you’re done. No reason wealthy need it.
& remember - farmers are net contributors to the economy. They are not the welfare bums collecting checks leeching off the system! ;).

Back on topic!!! Sorry!!! I tried for some CRP a month or 2 ago. Same - no go. Keep posted when sign up is back on!!!
 
Sligh1 said:
All for it!!!! Reduce or eliminate it!!!!
To clarify- what I was saying was this…. Farmers pay a buttload in taxes or “contribute to the system”…. They are not the % of this country that sits around & get: EBT cards, free healthcare, free housing, unemployment or welfare checks, on & on. Do they get some “freebies” or tax breaks like most any sector? YEP! It’s nothing CLOSE to companies like google or Amazon, etc etc though.
& we gotta remember …. MOST farmers don’t “kill it” every year. The giant ones & top 1% sure. But there sure isn’t a farmer that became a billionaire like in other businesses. Overall - their NET worths are far less than most other sectors. Usually their worth is in the land they have no intention of ever cashing in. & I assure anyone- they have headaches & work loads that are insane in many years. OR- multiple years in a row where they work all year & make $0!!!! Or lose $!!! It’s a big cycle for their income. Any other job or sector- if someone said “u will work & get paid $0 for next 3 years” - u would be screwed or find another profession.
Now- when u work “35 years” & now multiple farm loans are now free & clear- u start raking it in for SOME folks. That’s after u bought a pile of farms with 20 year loans (which probably takes 1-2 decades to get those farms bought & then another 20 to pay em off). Millions in equipment, lots of stresses & big swings from good times & bad times. Those at bottom to middle have rough time when it’s “tough times”. We had it 2015-2020…. There was a pile towards bottom barely hanging on.
GUYS ON TOP…. Great ground, paid off… almost always immune to bad times. Killing it!!! But that’s sure not everyone!!!!! & those groups exist in all walks of life & sectors. & absolutely- reduce government subsidies!!!! I personally think we should change it so - new farmers get subsidies for maybe 10-15 years. After that- you’re done. No reason wealthy need it.
& remember - farmers are net contributors to the economy. They are not the welfare bums collecting checks leeching off the system! ;).

Back on topic!!! Sorry!!! I tried for some CRP a month or 2 ago. Same - no go. Keep posted when sign up is back on!!!
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Well said. ^^ I am just going to comment and say that, like many farmers, various business owners go through "up and down" cycles too over a period of years. Cycles that many people who draw a salary that is very consistent year to year would have NO IDEA how wild these swings can be.

When things are going well for my business I occasionally hear a comment to the effect, "It must be nice...". With the point being that they can see that things are going well and I as the business owner can afford a new boat let's say. OK, alrighty...yes, I can, this year. But would you like to see how much money I lost say four years ago?? Most would have no understanding whatsoever of what all goes on to "float" the bad years, hoping to get back to some good years.

A wise man once told me that as a business owner that "the highs are higher and the lows are lower". I have found that advice to be extremely accurate. Not all businesses are the same, but farming and construction/trades (my sector) are two of the most volatile sectors out there...it's just the nature of the beast.
 
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