Farm And Ranch Country (Bill Graff)

House Ag Committee Field Hearing Farm Bill I report on, and give my take on what was said at the House ag committee hearing in Galesburg, Illinois. It is my belief that a farm bill is very likely to be passed before the election.  The winds have changed and I think it may get done. I have testified to Congress before and this "field hearing" was much like all the others I have been at. From the sounds of it, crop insurance will be a big part of the farm bill and direct payments are gone.  I also think chairman Lucas would have liked for the farm bill to not have had to be caught up in the current big government/raise taxes/cut government debate that is now going on in Washington, D.C. Listen and enjoy, not a real long podcast. I still like my idea of a farmer choice farm bill.  The link below is where anyone can give testimony to the House Ag Committee in regards to what should be in ( or not in) the next farm bill. http://agriculture.house.gov/farmbill_feedback.html

Farm Bill Podcast I continue my discussion of the 2012/2013 farm bill. What is the fall back position for agricultural groups if a farm bill does not happen? What is your fall back position for your agricultural operation if a farm bill does not happen? Lots of hurdles to overcome to get a farm bill finished. Agricultural committee members and their staffs have done this more than once during difficult times. Budget in the end is the problem with getting a farm bill done.

Can both the House and Senate pass a Farm Bill and get Obama to sign it before the November election? Can they even get a transportation bill done before March 31, 2012? Offices closures are going to be a hot topic this summer.  No not USDA FSA/NRCS/RD offices, but local Post Offices are scheduled to be closed. Will the new debt limit just passed late last year be hit before or after the November 2012 election?  Remember all the processes and cussing and discussing that went on to get the debt limit raised last fall.  Can a farm bill be even brought up in that atmosphere?   Will farm groups agree on something, agree to disagree, or fight amongst themselves? Will crop insurance and CRP be the only real big farm bill programs in the end? Maybe not this farm bill but in the next one? The real hangups I see are; how direct payments are replaced and will the boys down south with rice and peanuts and cotton get anywhere near that level of payment with an insurance type program, will there be any administrative changes to food assistance, and how will the environmental lobby react to cuts in conservation payments?  

Farm Podcast Do people in agriculture, especially farmers and ranchers in particular, focus too much time and attention on the negative things in our lives? I know I do at times. I start this podcast with a my short take on music, then compare it to agriculture. I know it sounds like a stretch, but stay with me. So, why are so many farmers and ranchers so negative? Today, many people all over the world are unhappy, but we have never had it so good. I want to, no I really, really want to start focusing on the sunny side of things. So listen and I hope you enjoy this as much as I did doing it.

Farm Podcast There is a lot of money in Agriculture right now. Record numbers of attendees at winter Agricultural conferences. National Cattlemen Beef Association and Commodity classic have/had record number of people registered as attendees. Cash rents are going through the roof in many areas. Agricultural equipment sales were very high in 2011. Farm building builders did a record business in 2011. Land prices set record highs in 2011.  Midwest land prices made new Inflation Adjusted highs in 2011. Surpassing top made in the early 1980s. Why is there so much money in agriculture right now?  When will the party come to an end?  Will there still be a federal farm safety net when the agriculture economy turns down??? With record government spending and entitlement programs eating up more and more federal revenues, will very much of what we think of as agricultural policy exist in 10 years? Real farm net income continues to set records. Lastly, I look out into the future as to what the consequences of all this money will be on the future agricultural economy.

Farm Podcast How does a young beginning farmer that is not part of or joining a large already running operation acquire land to farm? Grain farming especially is very,very profitable right now.  Land continues to be "locked" up by large to very large operations.  So how does a young person get started right now? Of course the government is talking the same things it has done for years and farms just keep getting larger.  Social engineering farm groups continue to complain just like they have for years.  So how do you get started? Many mid-sized, middle-aged operations continue to loss ground to the mega-farmers.  So how does this mid-type guy survive?  Not too far away from me a mid-sized farmer lost over 400 acres to one of the mega cash renters.  How do you plan on competing with the mega cash renters if you farm in the Midwest?  I even know of a Co-Op that is re-structuring.  This local Co-Op is trying to leave one parent Co-Op for another one. Young farmers used to start with livestock.  Can you do that anymore? Can the government help? Control of land is where it is at.  For 95% PLUS OF PRODUCTION AGRICULTURE, control of the land or how a farmer controls the land is key. How are you going to compete in the future?????  

Huge difference in the 50 States when it comes to their financial shape.  Many farmers and ranchers are from states where the state finances are in OK to good shape.  But, the states that are in financial trouble are large states in both population and economic size. I will discuss the economic size of states, and how this affects agriculture.  Where is this all heading and when. What can be done to solve this problem. Will some states need to go into some sort of bankruptcy? This will become before it is solved a huge problem for the United States.  Obama's stimulus just helped these states in financial trouble push it down the road for awhile. Will the population of these states along with their current political lineup allow the sacrifice necessary to solve these problems?  Look at the recall votes in Wisconsin and the ballot initiative in Ohio.How does this affect you and your agricultural operation? How will this affect people in states that are not in financial distress? Will your taxes be collected and used by the Feds, if these big economic and population states are in control of the Federal Government, to fund their constituents services in their states?  

Subscribe in Itunes My opinion on how and why the Agricultural Community would fare under the different Presidential candidates.  Additionally, how the agricultural markets would react.  I look at all the major candidates including those that have "suspended" campaigns and those that have no chance. I make no predictions and do not "cheer lead" for anyone in particular, I just assess the field. I also assess a second Obama term. I also discuss who and how the different campaigns may put together in a Farm and Ranch coalition.

I discuss my TOP TEN USDA programs and/or functions that I would eliminate, reduce, consolidate, or change the direction of the program. \ I am not going to make everybody happy and I am sure to upset quite a few people and many will be USDA employees. I go through my TOP TEN and then I really have a discussion on the Conservation Reserve Program.  I am a supporter of CRP and was even a bigger supporter when grain prices were really low, but now we need to downsize CRP and focus our time, efforts and money on the areas and practices that will give us the most bang for the buck. I talk about quite a few conservation programs, but I also go on to explain why some USDA functions just need to be eliminated. I also explain why I think that for every one job that is reduced at the county office level, the level that actually provides services to farmers and ranchers, and helps farmers and ranchers produce food, then one job at USDA in Washington D.C. needs to be cut and also one job at the major regional offices, like Kansas City, St. Louis, Fort Collins.  Of course one would have to take on the government unions, because all the major offices are union, but many county office employees are not union, and many are prevented by law from being unionized. A secretary of Agriculture that would do this would need independent outside counsel to get this done, considering the "Empires" that exist in many areas of USDA.

Farm Podcast Something not in "the plan" goes wrong. What we as farmers and ranchers often overlook is what we did right, and we focus on only what we did wrong.  We also worry about things we have no control over, when we should be worrying about how to control the risk associated with things we have no control over, such as a drought. I try to do an honest year end analysis ever year.  What worked and what didn't and why.  What we will do different next year and what we will try again.  Also, what we will try new I discuss the difference between "English" and German farming mentality. Are you ready for the new year?

Newest Farm Podcast Lots to say so where do I start?  Is Corzine a crook?  That is to be determined by a court of law.  Did he do immoral and unethical things?  Yes, in my opinion. I look at and discuss what is known and rumored about the MF Global collapse.  Much to say, but does it really matter? Does this affect the agricultural market for a long time? Could possibly have huge affects on Agri-business.

Well, the Super committee went down without an agreement and along with it a "new" farm bill. Much cuss'in and discuss'in about what went on.  Pat Roberts has probably said the most.  It was done in secret with many parties out of the loop. In the end I wonder if Lucas will be the biggest loser when all is said and done. This process appears to have split agriculture into more regional blocks then ever. Presidential politics are soon to enter into this debate.  Floor of the House could still be where all the action will occur. Agriculture in the end was the only part of Congress to actually do what the super committee asked them to do.  Was this process only the first part of one, two, or three more levels of cuts to the farm bill.

listen to podcast: I ask and answer about 20 questions on the current Farm Bill process. Includes comment about the Super Committee process. Last question is " Will this current Farm Bill and the process in which it came about come back to haunt agriculture in the future"? United States agriculture will face a major crisis sometime in the future, we all know we will.  Do we spend all our "chips" now when times are good?  Is this just commodity groups and general farm organizations trying to stay viable during the "good times"?

Short Term I give my take on what markets will be affected the most and the least, and other factors affecting individual markets. Medium Term China to the rescue? Stagflation, last time US had this much food inflation was 1978 which was followed by high inflation in 1979 and 1980. Long Term 1. Rise in Nationalism 2. Less agricultural spending in Europe 3. Inflation 4. Higher Interest rates 5. List of countries with problems and who could be next or what order they will have major problems. 6. Super Committee 7. What is owed to whom by whom???????

Is the house and senate ag committees following the correct strategies for a new farm bill? Are the major commodity and general ag groups going about this in the correct way? Do farmers even realize what is going on, and do they care right now?  Do most farmers and ranchers even realize that crop insurance is part of the farm bill? Are some staffers trying to justify their existence? Will the strategy to hang a farm bill on the super committee work? Can a farm bill pass the house next summer on its own? Tell me what you think.