Wednesday, February 18, 2009

Chris Clayton and Vilsack on Pay Limits

Chris Clayton at the DTN blog covers Secretary Vilsack's talk to the Cotton people. He seemed to indicate no change in pay limit regs for 2009. The cotton people will talk to their friends (Chambliss, R and Lincoln, D) to try to get a provision requiring USDA to revert to 2008 rules. That's the sort of lawmaking tailored to specific interests which gives Congress a bad name, but don't be surprised if it doesn't get added as a rider somewhere.

Interestingly, from a philosophical viewpoint (that is, in my humble opinion) farmers should not be changing their operations at all because of payment limitation rules. They should organize the way to be the most efficient operation possible, then the rules should apply. I know that's never going to happen, it's like saying someone shouldn't decide whether or not to buy versus renting a house based on the tax deductibility of the interest. Economists point to such changes and say the government is making the economy less efficient. And it is.

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