Bush to cut farmer subsities?

[hillhunter]

I would pay the taxes on the money. Think of it like this, you buy a new truck every two years and that costs you $70K, you pay the taxes on that and it costs you a lot less. If your accountants are telling you to go buy a new truck to "save" money then they need to learn to add.

I get sick of everybody tring to buy up stuff at the end of the year to "save" on taxes. What are you saving? You want to save that money, then pay taxes on it and put it in a Roth IRA or some other investment with return and build some real equity. Not something that will depreciate to basically worthless after five years of farm work. You aint saving nothin, you just pissed away your money.

[Soybean Man]

Maybe you don't have a very good accountant.

[Soybean Man]

Also, one thing you fail to realize is that a truck is a farmers office and work tool. It is business expense in a farming operation.

[BeastMaster]

i agree with work truck/right offs/ taxes etc.. Harley's and ski boats help farmers in what way?? i still say that the farming community lifestyle (this is a stereotype b/c not all are like this) have gotten comfortable and don't want to change.. hell i wouldn't either.. i just have a bad taste in my mouth growing up around farmers kids.. i am bias b/c of that and i won't soon change.. i got tired of seeing those academy boys get everything they ever wanted and a pocket full of money while i had $#!+.. worked for what i got and i still aint got two nickels to rub together and then to hear a farmer complain... there are good ones and there are some that abuse it, granted...

i do agree with the whole depreciation concept and buying new stuff to offset that .....

[Dog's Eye]

Truck envy is a terrible thing! Buy one the American way, most farmers do the same.

A cotton picker cost about 250k, you gonna get envy over that? You do get depreciation. But, depreciation is a real cost of doing business in all industries.... think about it collar boy, your house cost you money! you have to paint it, inspect for termites, and do other general repairs throughout ownership. It cost you over a lifetime. You don't make money buying and owning a house. You pay less to live in a dwelling where you control expenses.

A four wheel drive truck is a necesary piece of equipment on a farm. Just like a tractor.

Farmers don't buy equipment to avoid paying taxes.

[Soybean Man]

Exactly

[Dog's Eye]

Have any of you that think capital investment creates a tax advantage at the end of the year ever had an accounting course?

I'm buying a truck this year, and I'm gonna pay the sticker price, and give the salesman a ten percent tip for helping me pick it out to avoid paying in tax. This is almost stupid!

And, demonstrates how little those on the outside of farming really know about agronomics. This is why it is so easy to create a public demand to reduce farming subsidies. Everyone really should understand what we are doing!!!!! I think we would all benefit.

You want to avoid paying taxes? trade your yearly work for a commodity, that's an asset. Then seel just enough of that asset for something called income and adjust your balance sheet so that liabilities match assest. Carry forward the commodity into the new year, and sell it...... then do it again and again and again.... and realize that you have spent a life chasing a profit that really never existed to begin with... subsidies are the under pinning of our economy... I know more salesmen that trade their vehicles every two years or forty thousand miles than I do farmers, and the answer here is not tax benfits... it is simply the oppotunity cost model in action. You pay to drive, no matter what it is... you pay to drive! you can pay more with less down time if you trade at the right intervals... you can pay less with lot of down time if you drive the wheels off a paid for truck.... It's captital conservation!

[hillhunter]

I'm not talking about cotton pickers, I know that they are a cost of doing business. I'm talking about folks who are actually brainwashed enough to think that they need to buy something to avoid taxes, and don't say that they're not out there, b/c they are.

As far as farmers needing four wheel drive vehicles, yea whatever, my grandad farmed for 50+ years and never owned one. It's not a NEED thing its a WANT thing. I'm not talking about tractors or pickers or seed or ton trucks. I realize they are inputs, and i agree with Benny that the companies are screwing the farmer.

As far as subsidies go, yes i do support them, but whether you or i or everybody who reads this supports them it doesn't make a hill of beans if the people we elect don't understand this or anything that has to do with production.

[bradrussell5]

A smart man once told me, if you dont have cash flow it dont matter how profitable you are, and if you dont have profit, dont matter how much cash ya got either My opinion on the taxes is if you can beat the system more power to ya, it just goes back to that ole saying "risk and reward" About the subs, i hope nothin gets cut but lets go back to the original question, do yall think some subs will get cut and if ya do which ones?

[hillhunter]

Brad as bad as i hate to see them cut, i think they will be cut. How much or when is a question everybody wants to know. If you want my opinion cotton is going to get it the hardest....call it a hunch.

[Soybean Man]

It is all about efficiency, which they don't teach in college. They just theorize, believe me I am still in graduate school. You don't need a gun to kill a duck, but a shotgun is more efficient than a rock. You don't need an atv to go a mile across a field to your duck hole, but it is much more efficient. A 2wd will get you to most places, but when it is muddy it is much more efficient especially to go after equipment or shut down a well when a rain storm hits unexpectedly. A lot of us that do farm are worried about farm subsidy cuts and will defend them with our livelihood. As to how much and to what extent, I don't know. I just hope my senator stands up like Senator Cochran has and defends us. There are crooks in every job known to man, even some farmers. Remember, subsidy payments are paid according to yield and acreage. The bigger the farm and better the yields are, the bigger the payment. Can you blame someone for making better yields and farming the most land available and getting rewarded for it?

[torch]

Have any of ya'll ever looked at a roundup ready soybean under the microscope? It has "CHAPTER 11" wrote all over it

[bigwater]

torch wrote::


bwabwbaaaawwwa
thats funny torch

[BigCountry]

hey beasty boy.

you want the life style do like most of us farmers. rent you some land, buy the equipment and get a production loan and have at it.

as far as your statement that most of us walked into a farming operation. not true. my dad died broke as $#!+. didnt leave me a thing. i had to get it all on my own. untill you come and do what we are doing, worry all night about a crop, keep your mouth shut. most of use have got every thing on the line for every crop. just like any other small buisness owner.

[Dog's Eye]

As for walking into a farming operation... well let's just say the game has a very quick hand weeding out the fella's that don't get it!

let me guess on this one, when you were eight years old you got five dollars a week allowance for taking out the trash, cleaning your room, and not giving your mom any lip.... Well, I was given a "illegitimate child" file a used hoe and a forty acre field and told to get after it by seven every morning. I spent all afternoon on the lawn mower.... I got minimum wage and only got the keep 5%, the rest went in savings.... when I was eighteen I had worked my up to driving and was getting 50% of my net pay. I put myself through school with this money. And, to this day, I can't spend a nickel without thinking twice about it. I have a college degree and a good job with a future.

If your not getting what you want out of life don't blame the farmers kids at school for it! Most of those dad's do more work before 7am on any sunny day than you do all week! If you don't have what you want out of life it's YOUR FAULT PAL!