As the world turns, will it be fair to ag?

After a break to step back and reflect, nurse a replaced knee, and a few other things, this blog is back wondering about this world, its finances, and just where agriculture may fit in the mix.

I was able to travel to Europe a few months ago.  My nephew is stationed in Germany with the Air Force.  He is an avid traveler and expertly guided us through several countries during our stay.  The best part of the trip was that we went beyond the normal ‘tourist’ spots and included small villages, farms, small retail stops, and some other ‘off the beaten path’ areas.

One thing was clear.  Europe is broke.  If it weren’t for Germany, though it has its own problems, the EU would be folded now.  With Greece, Spain, Italy and others in dire financial shape, the future is more than uncertain.  People there are worried.  But interestingly, not just about the EU, but also the U.S.  In talking with people there, their fear is that the U.S. is trying to be like them.  Their advice?  Don’t do it, you can’t afford it!  A wonderful lady we spoke to who owned a small shop in Lucerne, Switzerland was the most blunt.  Switzerland is not part of the EU, and they still have the Swiss franc as currency, but she had plenty to say about the EU and its Euro currency.  “Some people don’t understand there is no money!  They expect the government to create it!  You can’t keep taxing entrepreneurial people and companies, they create the jobs.  More taxes, fewer jobs.  Workers want more, more, more.  Well there is no more, too much has been given already.  Everybody must take less.”

Sound familiar?  The same conversations are happening here in the U.S.  So what do you do?  Some want to tax the wealthy.  Well, according to my Switzerland friend, that’s a job killing action.  Some want to cut deeply into government spending.  Sounds good, and must be done, but how far do you go?  The trouble is our Congress is looking for any easy way out.  At the top of the list is agriculture.

We can expect that direct payments are probably gone.  Other payments may be, especially to farmers who ‘make too much.’  The problem is many in Congress are looking at gross income rather than net, and also don’t understand the finances of agriculture at all.  A farmer can make a half million dollars pretty easily, but when it takes nearly that much (or more) to make that money, or the experience of a crop loss devastates cash flow, it’s easy to see there isn’t much left when the dust settles.  Let’s keep in mind everybody eats, and protecting an agricultural ‘safety net’ is important.

Should farm programs and payments be looked at?  Yes.  Should farmers have to be part of the cuts in government spending? Yes.  But, should they only bear a fair portion of the cuts, just like everyone else?  Absolutely yes.  Congress needs the courage to tackle all spending, not just ‘easy targets.’  Agriculture, and the jobs it creates (nearly 20% of the workforce) deserves at least that.  We’ll see how it goes.

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