Welcome to DU! The truly grassroots left-of-center political community where regular people, not algorithms, drive the discussions and set the standards. Join the community: Create a free account Support DU (and get rid of ads!): Become a Star Member All Forums Issue Forums Culture Forums Alliance Forums Region Forums Support Forums Help & Search


(37,305 posts)
Wed Aug 29, 2012, 12:30 AM Aug 2012

US farmers eye record profits

US farmers are heading for their most profitable year on record despite the worst drought in half a century as high grain prices and payouts from a federal crop insurance programme compensate for a smaller harvest.

Net farm income will reach $122.2bn in 2012, the highest-ever nominal profit and the second highest in inflation-adjusted terms after 1973, the US Department of Agriculture said in its first forecast since drought spread across the corn belt.


6 replies = new reply since forum marked as read
Highlight: NoneDon't highlight anything 5 newestHighlight 5 most recent replies


(53,661 posts)
1. Would you say the profits come from the taxpayers, since it was not production?
Wed Aug 29, 2012, 12:51 AM
Aug 2012

How will the GOP spin this 'socialism'?


(10,705 posts)
2. I'd say it comes from a successful government program
Wed Aug 29, 2012, 01:02 AM
Aug 2012

...which helps out farmers facing natural disasters.

Production would have been much better, but if insurance has to be what keeps things going from one year to the next, that's fine. Best hopes for next year though - we're one of the biggest food producers and food exporters in the world, and much more than one bad year might be a problem that just insurance wouldn't fix.


(53,661 posts)
5. I think the GOP on principle wouldn't approve. They were against the auto bailout, remember?
Wed Aug 29, 2012, 01:29 AM
Aug 2012

The program to subsidize farmers is not being used as it was intended, according to some. Claims have been made that in some cases it's been abused by the bigger agricultual corporations.

The basic concept of crop insurance is a good one, to prevent the collapse of farming communities, and the loss of arable land and mechanical equipment for food production by abandonment. I saw ranches that had been owned for generations in the drought of the nineties in Texas that were lost.

Crop insurance was not mentioned, as these operations were dependent on the price of beef and it had bottomed out. Their fields were not providing summer feed and they were paying for hay from Oklahoma or other regions that were still able to produce. Some farm outfits, really large ones did not survive, others did.

At the same time the price of milk was low and some diarymen shot their calves since there was not sufficient money to seling them. I was offerd Holstein calves for $10 a head, but they'd require milk, veterinary care and feed. It was no use.

I understand that everyone would have prreferred to make the profits by crops. But now they have cash and possibly no rain next year. Are there any provisions for this money to be invested back into production, or can these profits be taken as corporations do, to fund non-farm ventures?

If one disregards the traditional meaning and culture of farming, do you see a true difference between this and a bail-out, if the monies were not called insurance? Since the government is the one making it works, it sounds like a necessary sort of bailout. And cash doesn't care where it goes, that money might go overseas.

Just a few thoughts I'm knocking around here, there are many things in this nation being left undone, people being hurt and they don't have what might be called in an urban setting, a job or industrial bail out or protection.

I don't have anything against anyone availing themselves of a government program. but wonder if Romney gets in and they continue to strip government, if all of this is a last gasp to get out of the business of farming.

I'd like to think, like most of us, that government will continue to be resposive to the needs of the citizens, but I can't imagine a Ryan budget helping these people out at all.

Latest Discussions»General Discussion»US farmers eye record pro...