I am among the most vociferous of farm bill critics, believing that we often subsidize these guys (ranchers especially) into artificially-inflated wealth. Apparently, the president believes the same thing, and proposes a cap on subsidies to land-owned farms over $500,000. I should be jumping, but I'm not...this is bad news for the small American farm and here's why.
1. It will destroy the tenant farmers who do not own their land, but largely lease from smaller owners, because the prices will inevitably be passed on onto them.
2. It does absolutely nothing about Big Farm agribusinesses (think ADM) who lease these monster farms and then still get subsidies.
3. It is based on operating revenue of $500,000. Not profit. Revenue. Well, look at it like this. For an average small farmer, who has the basic 200-250 acre farm, what does he need to pay for?
Disc driller? 150K
Farm truck? 40K
Cost per acre? 3-5K
How about work clothes, oil, gas, spare parts, feed, seed, fertilizer, water, electric, labor cost for trucking and services cost?
See the problem? This is not a good deal for the small farmer.