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Want to help young/small farmers?
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John Burns
Posted 1/26/2019 09:33 (#7273663 - in reply to #7273461)
Subject: limit crop insurance to 500 acres (or some other arbitrary number)



Pittsburg, Kansas
If you want to see diversification in farming, make people and especially banks have skin in the game.

No way our operation could have grown to the size it is without the risk management of crop insurance.

Banks would squeal bloody murder if you cut back crop insurance. But when banks quit doling out multimillion dollar production loans, that is when farm size will diversify. That is when old guys like me would look at the risk on the table and say "do I really want to see my net worth disappear in a bad year or two should the row crop farm economy go the way of ten cent hogs like I saw hog farmers go belly up in he past?" I saw a good friend hog farmer go from a multimillionaire to nearly out if business within a year time frame. Luckily he was able to save the family farm and continue farming, but on a miniscule scale and without hogs.

If you want to have more smaller diversified farms, get rid of or significantly reduce the safety net. The banks will do the rest.

I know I will get flamed for his one, but it is the truth. I have lived it.

Government involvement ALWAYS results in unintended consequences. ALWAYS.

John

Edited by John Burns 1/26/2019 09:53
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