Is taep funded from taxes dollars? Or is like caip in Ky?
Living in TN and not participating in the TAEP program, I can speak to this question, originally TAEP funds were from the tobacco settlement money. It was aimed at helping tobacco farmers replace their lost income by diversifying or improving other agricultural operations which were already in place and we had a lot of tobacco farmers, most of those folks had just been forced out of the pig business a few years earlier. Sounds like a good idea... Now I understand that there is a tax on tobacco that funds this program and all funds come from this specific tax.
My understanding is that now anyone that meets a minimum number of acres or head of livestock can apply and receive funding, if they meet the criteria whether they ever grew a tobacco plant in their life or not. I see it many times a day, I just drive any direction from my farm an see these signs (usually hanging on gov't funded hay sheds) that say "TN Master Beef Producer" and I know that these folks weren't tobacco farmers. Obviously the politicians saw how many votes that this "free money" was buying them.
At first the main effect was to drive bull and livestock handling equipment prices up by a third, which happened to match the cost share amount and still made the out of pocket portion equal to the cost before the TAEP started. Now they have expanded it to almost every capital investment on most farms, hay machinery, bushhogs, trailers, replacement heifers (as long as they meet the guidelines), etc. It is not just cattle, the list is very long.
It is good if you are selling bulls that meet the specs or equipment, not if you are buying. Everybody that can milk this deal has their hands in the pot, extension has these "Master Beef Producer" classes, where they bring in these industry experts to give a sales pitch to a captive audience.
I can't afford to buy anything in the sate of TN. We make capital purchases with profits, if there is not enough profit then we don't buy it. Anyone who doesn't participate is forced to overpay, do without or buy from a state without this kind of government interference.
NRCs projects are a totally different thing, I do participate in some of their programs, but I always ask where the funding comes from.
Agriculture is still a very viable industry in TN and most of us that treat it as a business are successful at it. There are also a lot of people that don't know the difference between running an agricultural business and "playing farmer". Many people in my area don't realize that their livestock are really no different that lap dogs, they just live outside.
So yes the TAEP is taxpayer funded and yes it is very abused.