40% of farming income comes from bail outs

imaginethat

Forum Staff
Oct 2010
70,513
30,735
Colorado
I'll bet it's the small farmers going bankrupt.

Farm Bailout Money May Be Disproportionately Helping Rich Farms Get Richer
With the Trump administration’s trade war adding to what has been a truly horrific year for American farmers, the USDA announced some more clarification on the latest bailout package.​
This second round of bailouts is, like the first, designed to keep American farmers solvent during a year stuffed with drastic cuts in exports, droughts, rainstorms, and market difficulties. The USDA made some changes to the specifics of who gets how much money and why. But is it actually helping those who need it?​
The Environmental Working Group analyzed the data provided by the USDA regarding the first bailout, to learn more about how the money is being distributed. This bailout, as with the last (and, in general, as with all government agriculture assistance), is based on the size of a farm. The idea is fairly clean: the larger a farm is, the more it has to lose, and thus the more money it takes to make whole.​
These bailouts are supposed to have caps on how much a single farm can collect—$125,000 per individual farmer—but the guidelines for who actually counts as an “active farmer” are extremely low. The Washington Post notes that a person who simply calls into a few phone meetings per year can count as an active farmer, and thus take in up to that $125,000 mark.​
The payments technically are part of what’s called the Market Facilitation Program, or MFP, which includes the bailout money as well as various risk-mitigation and insurance payouts. That has all meant an awful lot of money floating around: the EWG found that 82 farmers collected over $500,000 in MFP money in 2018-2019. Deline Farm Partnership, in Missouri, collected a whopping $2.8 million. (Deline has not responded to requests for comment from the Southeast Missourian, a local news source.)​
In comparison, found the EWG, the bottom 80 percent of farmers received less than $5,000 each.​

Here's insult to injury.

Further analysis from the Farm Bill Law Enterprise showed that the MFP money has disproportionately gone to white farmers—99.4 percent of MFP payments went to non-Hispanic white farmers, while estimates indicate that 95 percent of American farmers are white. That difference gets more stark when you drill down: in Mississippi, says Farm Bill Law Enterprise, 14 percent of farms have a black principal operator, but only 1.4 percent of Mississippi’s MFP payments went to black farmers. The USDA, for what it’s worth, has a very long history of discrimination against non-white farmers, even settling a lawsuit in 2010 for $1.25 billion.
The newly released rules for this round of MFP payments actually raise that cap from $125,000 to $250,000 per farmer....
Another change: previously, each farmer applying for MFP assistance had to have an average adjusted gross income of less than $900,000 per year. That’s been changed: there’s now no limit on the size of an applicant’s income, as long as 75 percent of the income “is derived from farming, ranching, or forestry related activities.” That opens up super-rich investors, relatives, and anyone else who can convince the USDA that their wealth comes from the land.


All for the rich, all of the time, Donald Trump.


 
Jul 2019
9,681
6,512
Georgia
the most ironic thing is that we're borrowing the money for these bailouts..............from china.
 
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Jul 2019
9,681
6,512
Georgia
update on farmers' situations
and it's not pretty


Wisconsin lost 10% of its dairy farmers in 2019, marking its biggest decline ever as Trump's trade wars raged

Wisconsin shed 10% of its dairy farmers last year, according to data from the state's Department of Agriculture, Trade, and Consumer Protection. It marked the biggest drop in a single year, and underscored the negative impact of Trump's trade war in a state critical to his re-election bid.
Last year, China slashed its purchases of American dairy products by 50%, helping to throw scores of farmers out of business.

The business environment has particularly worsened for small farmers.

Wisconsin shed 10% of its dairy farmers last year, data from the state's Department of Agriculture, Trade, and Consumer Protection shows.

It marked the biggest one-year drop on record, and underscored the negative impact of Trump's trade war on a swing state critical to his re-election bid.

In 2019, Wisconsin lost 819 dairy farms, the department said, leaving 7,292 dairy farms in place. The state leads the nation in the number of farm bankruptcies, according to the American Farm Bureau.

After Trump launched his trade war against China and other friendly nations in 2018, China responded by slapping hundreds of billions of dollars worth of tariffs on American products.
Last year, China slashed its purchases of American dairy products by 50%. Combined with falling milk prices, the trade war has thrown many farmers out of business. The economic environment has worsened considerably for small dairy farms in particular.

The state's coveted 11 electoral votes went to Trump by 23,000 votes in 2016 - or less than one percentage point - a razor-thin margin that promises to make it another key battleground in the 2020 election. Additional volatility could weaken his support among farmers, though their backing remains strong.

Farmers have suffered significant business losses because of the trade war, resulting in a $28 billion bailout package that's double the amount the government forked over to Detroit automakers at the height of the recession a decade ago.

Still, a greater share of that aid may be going to richer farmers. The Environmental Working Group, a nonprofit organization, said in a study released in November that wealthier farmers have drawn larger cash payments compared to poorer ones.

Americans have also borne the brunt of Trump's tariffs. A paper released this week from the National Bureau of Economic Research found that consumers paid for "approximately 100 percent" of the tariffs in the form of increased prices.

However, both China and the United States are set to sign a "phase one" agreement that would de-escalate the trade war on Wednesday.
 
Aug 2019
1,010
1,027
Albuquerque, NM
Republicans are complete hypocrites. They don't care when money is spent on them and things they like. And they will excuse this obvious attempt to buy votes, and was caused by their Fuhrers complete incompetency.

CAn't wait until the next Dem president, these whiners earned a permanent STFU
 
May 2018
8,275
6,278
none
Republicans are complete hypocrites. They don't care when money is spent on them and things they like. And they will excuse this obvious attempt to buy votes, and was caused by their Fuhrers complete incompetency.

CAn't wait until the next Dem president, these whiners earned a permanent STFU
I'll never vote GOP again. I don't care who it is. They have lost me permanently. They have proven that they have no integrity, and do not support the constitution or rule of law.