Post the 80’s crash, there have never been years where the bail out failed to come. The only farms I’ve seen fail, were from poor decisions outside of farming. I’ve seen the CME knock a couple of guys out who thought they were the wolf of wall street. I’m thinking of a specific conversation I had with a group of locals at the coffee shop, things were really good at the time, and I quipped about how the smart money would use this time to employ strategies to become stronger and more resilient, and break free from the same old, same old. The response was full of chuckles and sarcasm, “they’ll come up with something.” Not that I have room to talk, every time I go to a conference and hear Gabe, Allen or Rick opine about how they don’t use crop insurance or take any payments, I feel like the guy who just farted in church. I will cash any check they send me. But it’s not that much, barely a measurable part of my net equity.
It all comes down to what was said from 30:21-30:38. Bad policy driving bad behavior. I agree that it won't change anytime soon but I do see more and more resentment building among non farmers in my area of SE Nebraska and Iowa.
I often wonder what a bag of seed or new combine would cost if we didn't have subsidized insurance and disaster payments. I think the farmer is a politically convenient intermediary to channel the money through.
Seeing what is right becomes difficult without understanding the difference between originating wealth and generating a margin. You must begin with the premise that, all wealth comes from the earth. Then realize that you can originate wealth and fail to generate a margin. This distinction is important because the origination of wealth is the foundation that everything else sits upon. The United States of America is an exceptional and rich nation because it contains a great deal of land. And because of the gift we all have been given called The American Dream. Which is, “the opportunity to have your nature, habit, talent, and luck determine your success within a just and moral society”. It is in the people’s interest to protect the origination of wealth from the land. Failing to do this we have an economy based primarily on margins which can appear to produce tremendous wealth but, it is a shallow rooted plant, that can wither quickly.
Unconventional thought: Trump has promised to reinvigorate home-soil US manufacturing. He threatened Deere, who I think. capitulated. He cannot afford manufacturers like Deere, Case, etc. to offshore or stagnate economically. Perhaps Ag funding has a higher purpose to a higher power; and therefore continue (or even expand).
Yes, whether it has anything to do with Trump or not is debatable given that he's not in office and the money wa approved in December. But yes, the money flows to Ag companies and ag lenders for sure.
He's bragging about his economics degree and doesn't know difference between income and revenue. I only get a 5%return on farm assets with the 300 acres of land I own. I get 7% dividend on my BP stock and pay half the tax on that income. Throwing more money into farming is like investing in a hobby. DAMIAN dude is just bitching that his slave farmer can't afford the rent on the land DAMIAN owns. He should farm it himself.
Incidentally, I corrected myself and clarified for the audience the difference between net farm income and gross revenue. But, economically speaking revenue and income can be the same thing unless you're discussing gross vs net or AGI etc... Also I never bragged about my degree and I'm guessing you don't brag about your degrees either.
Damian, Paul, Chris, thanks for what you do for agriculture! Great content
Thank you for tuning in!
Great information.
Post the 80’s crash, there have never been years where the bail out failed to come. The only farms I’ve seen fail, were from poor decisions outside of farming. I’ve seen the CME knock a couple of guys out who thought they were the wolf of wall street.
I’m thinking of a specific conversation I had with a group of locals at the coffee shop, things were really good at the time, and I quipped about how the smart money would use this time to employ strategies to become stronger and more resilient, and break free from the same old, same old. The response was full of chuckles and sarcasm, “they’ll come up with something.”
Not that I have room to talk, every time I go to a conference and hear Gabe, Allen or Rick opine about how they don’t use crop insurance or take any payments, I feel like the guy who just farted in church. I will cash any check they send me. But it’s not that much, barely a measurable part of my net equity.
I point that out -- that since the 80s crash, the USDA has had a constant flow of money rolling into farms.
It all comes down to what was said from 30:21-30:38. Bad policy driving bad behavior. I agree that it won't change anytime soon but I do see more and more resentment building among non farmers in my area of SE Nebraska and Iowa.
This 10 billion basically gives enough money to pay the 9% interest on the 60 +% farmers that have there lines of credit maxed out.
I often wonder what a bag of seed or new combine would cost if we didn't have subsidized insurance and disaster payments. I think the farmer is a politically convenient intermediary to channel the money through.
you could make that case
I thought farmers were against government involvement in their life?
The positive out way the negative with the payments. Consolidatioms would be higher without.
Seeing what is right becomes difficult without understanding the difference
between originating wealth and generating a margin.
You must begin with the premise that, all wealth comes from the earth.
Then realize that you can originate wealth and fail to generate a margin.
This distinction is important because the origination of wealth is the foundation
that everything else sits upon.
The United States of America is an exceptional and rich nation because it contains a great deal of land.
And because of the gift we all have been given called The American Dream.
Which is, “the opportunity to have your nature, habit, talent, and luck determine your success within a just and moral society”.
It is in the people’s interest to protect the origination of wealth from the land.
Failing to do this we have an economy based primarily on margins which can appear
to produce tremendous wealth but, it is a shallow rooted plant, that can wither quickly.
Unconventional thought:
Trump has promised to reinvigorate home-soil US manufacturing.
He threatened Deere, who I think. capitulated.
He cannot afford manufacturers like Deere, Case, etc. to offshore or stagnate economically.
Perhaps Ag funding has a higher purpose to a higher power; and therefore continue (or even expand).
Yes, whether it has anything to do with Trump or not is debatable given that he's not in office and the money wa approved in December. But yes, the money flows to Ag companies and ag lenders for sure.
He's bragging about his economics degree and doesn't know difference between income and revenue. I only get a 5%return on farm assets with the 300 acres of land I own. I get 7% dividend on my BP stock and pay half the tax on that income. Throwing more money into farming is like investing in a hobby. DAMIAN dude is just bitching that his slave farmer can't afford the rent on the land DAMIAN owns. He should farm it himself.
You seem like a very rational and intelligent person. Thanks for tuning in!
Incidentally, I corrected myself and clarified for the audience the difference between net farm income and gross revenue. But, economically speaking revenue and income can be the same thing unless you're discussing gross vs net or AGI etc... Also I never bragged about my degree and I'm guessing you don't brag about your degrees either.
Damion there payments don't make anyone whole. your off by a mile