Budget Cuts

As a whole, I think that right now, farming is the only industry that is starting to see an upswing in payments. Grain prices are steadily raising, which is good. Some of that has to do with high demands and short supplies in reserves but for the most part, grain prices are staying bullish and looking good. Not so good if you are a beef, dairy or poultry producer and you have to buy them, but better in general.

Milk prices have been higher lately than I have seen them in a long time. Class III closed the other day over $19.00, much better than in 2008 when the milk prices bottomed out around $10.

Fuel prices are insane for all of us right now. Gas and diesel prices are hurting all of our pockets, especially farmers. Hopefully those prices will drop soon but, unfortunately, most of the farms in the corn belt are already preparing to plant their acres. These prices cut into their bottom dollar.

I just read a release from the USDA about the speech Mr. Vilsack gave before the senate about budget cuts. It sounds like they are going to be dropping a few programs that are co-covered with other agencies and slimming down on other ones.

“In total, the 2012 budget we are proposing before this subcommittee is $130 billion, a reduction of $3 billion below the 2011 annualized continuing resolution. For discretionary programs, our budget proposes $18.8 billion, a reduction of $1.3 billion below the 2011 level.”

Sounds to me like the USDA is in for some revisions, maybe not we can all be able to deal with the USDA and the paperwork involved for some of these programs a bit easier. I doubt it, but maybe….It’s like those lottery commercials where they say “Hey, you never know.” I think that if the USDA and the government would back off on a couple of regulations, it would be easier for us to make a little money and not have to spend extra time on paperwork or assessments.

I sincerely hope that we can turn this country around, without breaking everyone’s bank!

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