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Tighter payment limitations affect cotton farmers in Kansas

13 Sep '05
3 min read

“Proponents of lower limitations argue that farming operations have become larger in order to capture farm program benefits,” Feist said. “While it is true that the average size of farms has increased over time, more restrictive payment limits would not alter that trend. In fact, a USDA-ERS study concluded that program benefits have not contributed to increases in farm size.”

Feist said that advocates of lower limits cite farm programs as contributing to inflated land values and correspondingly higher rents, yet studies have concluded that tighter payment limits would have minimal impacts on land values and corresponding rents.

He also noted that changes in eligibility rules force changes in rental contracts with the possible consequence of forcing landlords to cash rent rather than share rent land. “This change would adversely affect beginning farmers and small operators who are normally unable to obtain production financing on cash rent operations,” Feist said.

The National Cotton Council of America's mission is to ensure the ability of all US cotton industry segments to compete effectively and profitably in the raw cotton, oilseed and US-manufactured product markets at home and abroad. The Council serves as the central forum for consensus-building among producers, ginners, warehousers, merchants, cottonseed processors/dealers, cooperatives and textile manufacturers. The organization isthe unifying force in working with the government to ensure that cotton's interests are considered.

The National Cotton Council

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