To: monkeywrench
I want the federal government to stop paying farmers not to grow crops.
8 posted on
07/17/2006 11:27:29 AM PDT by
1rudeboy
To: 1rudeboy
That is my point of view,also.
10 posted on
07/17/2006 11:31:06 AM PDT by
Dudoight
To: 1rudeboy
14 posted on
07/17/2006 11:43:23 AM PDT by
monkeywrench
(Deut. 27:17 Cursed be he that removeth his neighbor's landmark)
To: 1rudeboy
Actually, you aren't paying them not to grow crops. That went away with the Freedom to farm bill in the mid 90's. Now, you just give them a subsidy on each bu. that they grow.
I think (don't quote me on the number), that there is a target price of $2.62/bushel. 28c of that is a "fixed payment", which you get based on historical yields. You know going into a crop year exactly what you'll get on a fixed payment. 34c is the "Counter Cyclical", which is derived from the average farm price in the year. If the average price is $2.10, then the farmer gets the $2.62, minus the fixed .28, which gives you $2.34. Subtract the average price from $2.34, and that's your counter cyclical.
AND -- (Like that isn't enough), if the price falls below $1.98, you get a Loan Deficiency Payment, which is the difference between the local price, and the $1.98. It varies daily with the market moves.
So, if we have $1.50 corn, they'll get $.28 fixed payment, $.36 Counter Cyclical, and $.48 LDP, or $1.10. $1.50 from the corn, and $1.12 from the government.
The system is broke, it needs fixed!
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