How would it affect beginning farmers?
This plan would offer encouragement to them. They could enter farming as local conditions allowed. They would be able to expand their operations and payments over the life of the bill. Because payments are based on labor, the distortions for the land market would be decreased and land rents and values would be more in line with their income-earning capacity. What about other farm assistance? No special programs for market or weather-related problems would be allowed, except for those provided by other agencies or programs outside the U.S. Department of Agriculture. Trade, research, conservation reserve and other secondary programs would be maintained. The extent and nature of these programs would be covered in other sections of the farm bill. What are the benefits of such a plan? For one, the budget exposure would be fairly fixed. The federal government would know within reason the total dollar outlay for this program. Farmers and lenders would know in advance at least a portion of the
