Let me explain how this works, at least in my own family farm's position. I apologize for the snarky comments earlier. I just signed the loan papers and was reworking the cash flow yet again.<quoted text>
I'm paying for it, so I ***will*** comment on it. I like your logic, though. You've never been a man, so you have no right to comment on men. You have never been to the moon, so you have no right to comment on NASA. You have never died, so you have no right to comment on death. Etcetera, etcetera.
What I do know is that just about every other industry in the world seems to get by without subsidies. Here's the big gaping hint, since you seem incredibly uneducated on basic economics and therefore - under your own logic - with no right to discuss it. No industry that produces needed goods needs subsidies. None.
And you are an economically-illiterate leach on society, and it shows.
This year, the operating loan we will have to take out is appr.$500,000. That will pay for most operating expenses such as fuel, fertilizer, rent for land, LP, electricity, seed, and so on. Now, that is a private bank loan that must be paid back every year, regardless if you have a crop to sell or not. Yes, on top of that we do get some government help to the tune of $50,000. That money is also a LOAN, which must be paid back at the end of the year. What you fail to see is that 70-80% of these "subsidies" that are paid to farmers are actually government loans that must be paid back with interest at the end of the season. So, we must pay back our money to the bank and to the government each and every year. And that is assuming that we even get a crop. It could be a drought, it could be a flood, it could be hail or insects or just about anything.
Now, I understand that crop prices are up due to the ethanol boom. Don't assume that we are making money hand over fist. Yes, we are profitable for the first time in a while. I will freely admit that. But, as grain prices rise, so does everything else. In one year alone our fertilizer costs rose $30,000 and our fuel and LP and electric costs doubled. So we are paying more to produce the same crop.
And do I even need to mention the cost of machinery and infrastructure? Most of those purchases are on 10 year loans through the bank. We purchased a USED tractor 3 years ago and it was $110,000. Try pricing out a new combine sometime and be prepared to wet yourself when you see the price.(Although the new models do come with bun warmers and cd players, that's a welcome change. I like bun warmers but not $300,000 worth...) Not to mention repairing, maintaining and eventually replacing sheds, grain bins, drying setups, ect. So, we do all of this on a government loan of $50,000 a year.
If you really want to know more about how farm subsidies work, may I suggest visiting your local FSA office. The staff there will be more than happy to give you all the information.
Remember, don't complain about the farmer with your mouth full...