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Iowa | IF what you say happens, it still wouldn’t matter. I’ve talked with countless guys and they straight up say “if it gets bad enough the government will bail us out”. They’ve done it every time. So it would just get more guys in trouble.
What if they lowered tax rates on farm income? That’s where most guys get into trouble is they overextend to keep from paying a tax. Make all schedule f income taxed at a flat rate - if it’s 20k of 2000000. Then there’s no incentive to get into trouble. They could also modify the tax code and get rid of 179 deductions for farms too - getting rid of the thinking of expensing everything while still having payments. Of course the equipment groups wouldn’t like that either.
I think Trump is also right to look at suppliers. Monsantos idea was that you got to keep 50% of the yield increase given by a trait. So if rw corn gave you 10 bpa, it’s worth 5x$4 (I think they used 5 year average price) so $20/acre. That’s great, but some of these things have sunsetted and no longer provide any value, but the fee is still there. On soybeans you’re paying for the genetic material (and traits) but those are worth 4-6x what the base commodity is?? And they’re literally run out of a farmers bin. Keep in mind we’re the only country really enforcing these patents. And these groups got a lot of the base material from universities, turned around and patented it, while dangling money to reduce the viability of those publicly funded programs. | |
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freedom to farm 2.0
