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Let's not forget the Farm Bill.
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JUST LEARNING
Posted 9/3/2017 21:02 (#6227133 - in reply to #6226897)
Subject: RE: Let's not forget the Farm Bill.


KS and NE in eastern 3rd
NE Ridger - 9/3/2017 19:15

JUST LEARNING - 9/3/2017 17:32

If crop insurance was cut there would be a lot of ground in the west go back to grass. If I didn't have crop insurance I would probably cut my plant population 20% to protect against a drought.



Two questions.

1) How much bushels do you think would be affected? I don't think it's a lot.

2) What's the difference between grassland rent and corn ground rent in those areas? I don't know, I would appreciate hearing from farmers who think they would be in that areas. My guess is that grassland rent is enough lower that the corn ground rent can come down some and still be a better ROI for the landowner than grass. But that's just a guess.



I don't know total bushels but there have been a lot of dry land acres in kansas that have been brought into production in the last 10 years that would be very questionable without crop insurance. KS I think is #7 in total production and a majority of the acres are dry. The far eastern counties wouldn't change many acres but yield goals would change. I could see acres going back to grass in western ND, western SD, western NE dry land and Oklahoma and Texas dry land. It would just be too risky to grow corn in those states because raising under 30 bu corn is a real possibility.

Good native grass will rent for just as much or more than a thin soil high risk crop field. Currently good pasture sells for just as much or more than thin row crop. Take away the crop insurance floor and it would get worse.

In my opinion crop insurance has brought a lot of acres into production that would never of came out of grass without it.
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