Missouri river bottom south of Sioux City, IA | Hi Tom
That is true about were the landlord will spend the CRP money but the amount leaving the area is more then what the cash rent would have been because CRP payments were $100 to $150 over cash rents. I have not figured this one out yet but Monona county had the highest average CRP payment rate for 2015 in the corn belt. It was # 9 in the US for counties that received CRP payments that year. That will get landowners attention pretty fast. If the ground was still rented out and the tenant cleared $150 or more per acre after expenses, that money would be spent locally. You know the old saying “If a farmer makes $2 he will spend $3”
Tom Vilsack’s statement just does not set well here for guys that need to cash rent. “The Conservation Reserve Program provides nearly $2 billion annually to land owners – dollars that make their way into local economies, supporting small businesses and creating jobs.”
We will see how well that works out down the road in a few years.
Tom N.
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Farmer sentiment skyrocketing higher
