How do farmers make any money?

   / How do farmers make any money? #71  
About 40 years ago I started going with a friend to one of his family member's dairy farm to fish on their large pond. We'd clean the fish and give their mom half in repayment for the privilege of allowing us to fish there. The family had 4 boys. Not a one of them had ever been fishing on that pond. They said they went swimming there once or twice in their entire life. The rest of the time they were either working on the farm or going to school. Nice guys. All went away to college. Only 1 came back to the farm. Driving by now, the farm is in disrepair.
I worked on a dairy farm for a few years and your posts sums it up. On a 200 cow dairy the minimum amount of work a day that we got by with was 2 people working from 4 in the morning till 10 at night. Now they have robotic milkers on the smaller farms, but mine guess is what they save in labour they make up in equipment and maintenance costs as the are pretty hi-tech.
 
   / How do farmers make any money? #72  
The issue with animal husbandry is you have to be on premises 24/7 so no vacations or get away time. When we raised cattle and my wife raised and bred Percheron Draft horses, getting away for any length of time was an impossibility. Sure, we could have had hired help, problem is, can you trust hired help to provide the level of care necessary? Not really. Why we quit raising cattle and horses because raising forage requires no outside help or employees.

Now, if we want to go somewhere, all we have to do is make sure the cats are fed and we take the pup with us. Much easier and less stressful.

Far as the shop is concerned, I have very self starting employees who know exactly what is required so I don't have to be there all the time. In fact, most times, I'm in the way anyway. Had the same 2 machinists for over 10 years now and unlike the younger generation of today, they are actually very reliable and to what is required and of course I compensate them accordingly.
 
   / How do farmers make any money? #73  
I'm just allergic to green equipment. Causes an allergic reaction every time I get near anything green...
Thanks a lot. Now I have hives thinking aboot it.:sick:
 
   / How do farmers make any money? #74  
   / How do farmers make any money? #75  
Thanks a lot. Now I have hives thinking aboot it.:sick:
Fendt is green, too.
Deere make great stuff. Kubota is a joke compared to Deere in Ag.

Funny how brand wars always make their way into like 1/2 these threads.
 
   / How do farmers make any money?
  • Thread Starter
#76  
   / How do farmers make any money?
  • Thread Starter
#77  
It sounds like most people in farming don't have a very solid understanding of their financials, and relay of accountants or other to guide them. I think the scariest thing is hearing that people will spend profits rather than paying taxes on those profits. Make no mistake about it, that is SPENDING money, and not saving anything. Granted, you are essentially getting a discount on your purchase if it's tax deductible, but it's probably around 25%. And if it's capital equipment like a tractor, grain cart. planter, or any large equipment the deduction will be spread out over as much as 10 years. So if have a profit of $100k and decide to spend it on something like a tractor, you might get $10k tax deduction for each of the next 10 years. And if in a 25% tax bracket, that will yield a $2500 tax savings each of those years. And that first year you will pay taxes on $90k of that $100K you spent of a tractor.
 
   / How do farmers make any money? #78  
The issue with animal husbandry is you have to be on premises 24/7 so no vacations or get away time. When we raised cattle and my wife raised and bred Percheron Draft horses, getting away for any length of time was an impossibility. Sure, we could have had hired help, problem is, can you trust hired help to provide the level of care necessary? Not really. Why we quit raising cattle and horses because raising forage requires no outside help or employees.

Now, if we want to go somewhere, all we have to do is make sure the cats are fed and we take the pup with us. Much easier and less stressful.

Far as the shop is concerned, I have very self starting employees who know exactly what is required so I don't have to be there all the time. In fact, most times, I'm in the way anyway. Had the same 2 machinists for over 10 years now and unlike the younger generation of today, they are actually very reliable and to what is required and of course I compensate them accordingly.
I think what that comes down to is that some people are just naturally wired to care for domestic animals and that others (myself included) are not. I know my grandfather always missed his horses, after he brought the first tractor on our farm in 1950. He also loved raising beef cattle, hogs, chickens, and geese.

No doubt that raising livestock involves lots of hard work, but if your wired for it and love it, is it really “work” ?

Some of it was ok with me, but much of it, like cleaning out manure and dealing with frozen water in the winter was not. Trying to beat the rain to get the hay in, stacking them bales in the scalding hot hayloft in the summer, and dealing with the mud in the fall harvesting corn also lacked any particular appeal. Making money is a separate, but related issue.

I see animals mainly as “food” and I firmly believe that the primary reason that the Good Lord populated the earth with them, is to feed mankind.

Near the end of grandpa’s time here on earth, it was getting very difficult to profitably produce beef, pork, and chicken. It took near perfect weather conditions. There were also many other “outside influences” like fuel, fertilizer, seed, equipment and land costs, that were beyond our control.

As those costs rose, most of the neighboring farmers gave it up, allowing their land to get overgrown and/or consumed by subdivisions and urban sprawl. That made a rich habitat for the local whitetail deer population.

For those farmers who “stuck it out”, it became even harder to grow crops for the livestock. The deer liked most of those crops. After grandad died of a heart attack, out behind the barn while grinding feed on one sad fall day, it didn’t take my dad and his brother long to decide to get rid of all the livestock.

My family had raised cattle on this farm since well before the Civil War, but none for the last 40 some years. Fortunately, I discovered that those whitetail deer taste as good or better than the Angus and Hereford cattle did, and we hadn’t got rid of all the old farm equipment.

They also take care of their own water in the winter, feed themselves, don’t need their manure cleaned up, never need a vet, and make meat that is healthier to eat.

There’s so many around here now, that the state allows us kill up to (9) deer per person (only (2) of which may have antlers) with reasonably priced resident hunting licenses, starting in mid September, and ending January 1, thru various seasons for guns, bows, crossbows and muzzle loading rifles.

It would be ludicrous for me to even consider raising cattle again. I dislike much of the work involved, I like the taste of venison better (as does my wife and kids), and I can often produce venison for less that $ 1 per pound, after subtracting all input costs.

Not even accounting for inflation, we hadn’t been able to produce beef for that cost since the 1960’s.

It almost seems too good to be true. I get to enjoy all the fun stuff of the farming, like turning the sod over in the spring and watching the corn pop up in rows, but none of the hard, expensive stuff.

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   / How do farmers make any money? #79  
The biggest problem with subsidies is they get capitalised into the farm price, so the land cost goes up to insane levels and the smaller people are forced out. In the end you are farming the subsidies and not the crop.

Also straight bean counter operations are often not as good for the local enviroment as the small farm "eco reserves"(set aside by the farmer with NO assistance) are more profitable in crop.eg, 1 farmer set aside 8 ha (hectare)(approx 16 acres) ,each ha would bring in approx $6000 in gross income.$48k foregone.
Upside, more shade and significant increase in native species.
 
   / How do farmers make any money? #80  
As with any business you have to juggle taxes along with other operating costs. Uncle Sam gonna get his part no matter what. Many businesses would rather buy more tractor than they need to offset paying that or similar amount income taxes. Then after its amortized they can sell it and get a little back.

Also Farmers around here use to be able to take out low interest loans to purchase more land for farming. The land of course only goes up in value. BUT.. when they sell land that ole piper is hanging around the corner for his more than fair share (capital gains).

And of course they do (at least in nc) get a tax break on the land (called deferrment) if they mee the requirements.

Most have told me there ain't no money in farming. MY neighbors are up before dawn and work past sunset during March-November. So their hourly rate must not look too great. ??
I grew up on a farm back when they were small and people were making good money. Not sure what happened but it would appear that when the government got involved. Farming went down hill. I do know the tax payer supports farmers a lot. Generally the bigger farms get the biggest benefits. Dont get me wrong small ones do but small hobby farms are most definelty operating on their own successful ideas. Farms get all kinds of tax breaks. They talk about how broke they are yet they drive 70-90k dollar vehicles. Purchasing new equipment and so on.

The county we live was on the verge of getting windfarm. I went down the rabbits hole on how much the local farmers were recieving in subsidies and it was shocking. I also sent the commissioners a foia request. Found some damning **** going on between farmers and commissioners. The president for commissioners ended up resigning. Another option for farmers to make money but its typically met with a huge push back. Its rife with BS and if your not careful a county can get lost if these projects are allowed to move forward (wind and solar projects) I know its hard work and im not saying its easy. Every business has its struggles. I think if the government had stayed out of the game. Farming would be much better off. But with government intervention. Acreage prices of continued its meteoric rise
 

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