Our call for action written back on Friday October 21st, 2005

Is it true that 10% of the viable farmers get 80% of the US subsidies??

Not only is it not true, the facts show that either there is a conspiracy among anti-farm groups, or at best, there is an incredible lack of knowledge.  The real problem rests in educating the halls of congress and for that matter, farm groups themselves, of this incredible distortion of truth.  Let's start with what is going on and then ask a question. 

More and more news articles and commentaries are surfacing about agricultural subsidies and who they are being paid to.  So let's ask the question that really should go hand in hand with this discussion.  Who is feeding America? 

Many people would say, the grocery store and when asked where the store gets their food, some shrug and say, "don't know, don't care".  The media agrees.  They have adopted the idea that it should come from Africa since rich American farmers are getting so much support that the poor African farmer can't compete.  Have they ever been to Africa????  .... And in case your wondering, Yes, I have, and many times.  This idea of the poor African farmer being held down by rich country subsidies is like my mother telling me to eat all my food because children in Africa are dying of starvation.  So, I ate all my food and the children still died of starvation.  Well, I digress!!!  Maybe I'll do this subject later but as a quick comment, if we want to allow Africa to feed us, our children will be starving just like theirs. 

The media is what it is, a group of people stuck in the 1970's always praying for another Watergate so they can look important.  I think they would start World War III if they could get the scoop on it.  With that in mind, I just went through the USDA report on farms for the 2004 year and would like to compile the data and do the research for the mentally handicapped reporters of the media and for that matter, the aids in Senator Grassley's office.  And guys, anywhere anytime, I'll debate any of you.  ANYWHERE...ANYTIME!!!

If we have heard it once, we have heard it 10,000 times.  "The richest 10% of the farmers are getting 90% of the government subsidies at the expense of the family farm."   WHAT A BUNCH OF CRAP!!!    I have some cattle down here in Texas that don't put out near as much manure as the media and unfortunately some congressional offices.   

First, some of those "RICH" farmers that the media is referring to, will go out of business this year.  For some reason, the public thinks farmers are getting these huge government payments and going to Tahiti every year.  They don't realize that the subsidies go into the bank and are then paid out for fertilizer, equipment notes and fuel costs.  The fact is, Americans eat food produced at below production cost because of subsidies.  Taking away subsidies will raise food costs and no, Africa will not be able to send food over here and compete.  That is ridiculous.  In this area, the media has no concept of what is happening outside the beltway of DC and I doubt they care but I know some who do so here is my attempt to put things in perspective and let's do with the FACTS. 

Let's first look at some basic numbers.  According to the USDA (click on the link for the whole report) there are 2,113,470 viable farmers in the United States.  Yes, and one of my cows just took off for a three week vacation in Tahiti with the wings it grew overnight so everyone take a HUGE umbrella when walking outside!!! 

All right, I'll keep the sarcasm down a little but it's going to be hard!!!

OK, do you have this number firm in your mind?  Again, there are 2,113,470 total number of farms in the US.  Of this number, I hope you are sitting down, of this number, 1,180,560 or 55.9% of the TOTAL number of farms produced between $1,000 and $9,999 in GROSS production.  Read it again if you don't get it...55.9% of who the USDA says are farmers, grow less than $9,999 GROSS.  IF we attribute a 10% profit margin which most farmers would DIE FOR, what we are calling a viable farm is netting FOR THE YEAR, $100 to $999.  THAT IS NET!!!   To realize that 55.9% of all farms produce only this small amount of product, shows us something is not right in the USDA thought process.  Guys, this is killing us with regards to the farm program in Washington DC and Congress!!!   

Here is where I'm going, the USDA is still using 1946 standards for what constitutes a farmer.  They are saying that a VIABLE farm is anyone producing $1,000 of GROSS product per YEAR!!!!  So let me make it a bullet point...

$1,000 in GROSS Production = A Viable Family Farm 

So let's put it in simple terms...with corn at $2.00, $1,000 gross is 500 bushels and with an average yield of 140 bushels, a viable farm is now a 3.57 acre corn farm in the wonderful state of Iowa.  Senator Grassley should be proud of his efforts to keep such a farm in business as he wants to take support from the 2,000 acre farm and give to the 3.57 acre farm in his state.  Or what we would call, his voter base!!!  Even at the upper end of this category we have only a 35 acre farm.  Come on guys, a tractor costs $100,000 used.  Over 10 years that is $10,000 per year, how does a 35 acre farm constitute a viable farm???  It doesn't and it shouldn't.  If we consider livestock, anyone selling two calves is considered a viable farming operation.  Heck, poor Jack just missed being a viable farmer by one cow, oh, but I forgot, he had those beans, I'm sure he would have qualified!!!  Heck, if you have a nice size garden in your backyard, you qualify.  It is not very hard. 

So we now understand, the media believes a viable farm is anyone who makes, after expenses, between $100 and $1,000 a year net.  And again, we have 55.9% of all farms, be sure you get the picture, 55.9% of all farms nets no more than $1,000 per year.  No wonder the Media thinks rich farmers are getting all the subsidies.  They classify anyone farming over 35 acres and making $1,000 a year net from farming, RICH!!!  Guys, this is killing us with regards to the farm program in Washington DC and Congress!!! 

I wish that was all but I'm not through.    The USDA has the next set of farmers Grossing $10,000 to $99,999.  Let's put that in the same perspective.  This would be someone Netting between $1,000 and $9,999 assuming a 10% profit margin after expenses.  The USDA says we have 599,170 farmers in that classification which is 28.4% of all farms.  Now, let's add the first two classifications together.  All totaled we have 84.2% of all farms netting under $9,999 PER YEAR.   How many people do you know making less than $9,999 per year because that is what it means.  It would be the same as saying 84.2% of all farmers get a pay check less that $10,000 to live on.   Or maybe I should say, 84.2% of all viable farms are below the poverty level...well that wouldn't be true because we have another 9% not covered in these categories that are below the poverty level.  But I digress....

If I assume the same numbers for corn as we did above, we now have farms ranging from 35 to 350 acres.  There is no way a person can live ONLY off a 350 acre corn farm.  You might say, yes he can if he has cattle or hogs!!!  Nope, because if he did he would then have a gross higher than the $99,999.  Remember, cattle counts.  Yep, livestock is in these numbers including chickens, hogs, and cattle.  To put it in perspective, it would be a farm with just 350 acres of corn.  "What if he lives in Iowa?", you ask.  If his yield is over 140 bushels an acre, he is in the next group which is one of the "Rich" categories.  Oh and by the way, if we went to rice, $99,999 gross would be a farm of 208 acres.   Any rice farmers out there living on 208 acres of rice and NOTHING else!!!  We all know this is not a viable farm.  And remember, the 208 acres is the HIGHEST acreage in this calculation.  55% would have acres less that 21 and be considered a viable farm.

Can we stop here...are we finished???  Nope!!!  I guess we need to ask, what should the viable farm net profit threshold be.  In other words, what should the salary for a farmer actually be...$25,000...$40,000 or maybe $50,000.  When you look at the whole report, the facts are staggering.  Using a 10% profit margin only 7.8% of all the farms listed by the USDA would classify as a viable farm if the threshold was set at a salary of just $25,000 net profit (to live on) per year...7.8%.  You see, this is the group who is really feeding this country.  They are the guys living on a minimum of $25,000 a year and the same people who the media and many congressmen call "Rich"...there are no words to describe their stupidity.  They would indeed kill the very hand that feeds them.

(NEW DATA November 4th...---Average Farm NET income 71.5 billion.  Based on total number of farms, average NET INCOME $33,900...THAT IS NET!!!!  A farmer pays for housing and food out of that.  Anyone in urban America want to change places with the farmer making only $33,900 a year feeding this county...we should be ashamed!!!!)

Bottom line...Even using the most liberal terms, 84% of what the USDA says are farms ARE NOT VIABLE FARMS and should at best be considered hobby farms.  If we take that number and figure what percentage of the total food production they are providing, it would come in about 10%.  Now who do you want to keep in business, the guy feeding you 90% of the time or the guy feeding you only one meal every 3 1/3days. 

Let me stop and say I have nothing against the 84% who are considered farms by an antiquated USDA process.  I do have something against the media and other people like the Environmental Working Group using this to say the rich are getting all the subsidies and using this percentage to prove it.  The fact is, 16% of the farms produce 90% of the food in this country.  Since payments are based on production, most subsidies are going to go to the 16% who are producing 90% of the food.  Well DAH!!!

Believe it or not, I am not a big supporter of subsidies.  Do away with them but be ready to pay the price in higher costs in stores.  On some items, it will be very small increase, on others, like meat, get ready for sticker shock.  You cannot have your cake and eat it too.  My gripe is with this antiquated farm definition that is being used against the real producers of this country.

Here may be the biggest problem, we have a press in Washington DC that cares little about the whole truth.  They care about selling newspapers and getting a scoop and let me add that is what they should be doing, getting a scoop and scooping it up in a pile.  Man do they ever produce the...OK, I couldn't help myself.

There is a partial fix.  We need the USDA to reclassify the difference between a hobby farm and a Viable Production Farm.  Logically, a 10% profit margin and a $40,000 target would start the level of a viable farm at $400,000 gross.  Since the USDA has only 3.6% of all farms over $500,000 and 4,2% from $250,000 to $499,999, this would give us a number of about 4.5% of the current list as really considered viable.  When we do that, it will give a much clearer picture of farming to the illiterate reports of the media and Congressmen who care little about the truth as long as they can get re-elected.   

(With the new data of November 4th, using the actual average of $33,900 net, only 5% of all farms make that much per year....5%)

I wonder if the media has sent out any reporters yet to look for a flying cow???  He should be over DC about right NOW!!! 

(I know it.... but they probably don't even know it's a SHE!!!)