How do farmers make any money?

[rvds]

The reason I asked was because of somebody is incorporated they are drawing a paycheck. So while the business shows a loss, they still have money to live on.

Not really how it works on farms. If expenses are higher than revenue there is no salary, LLC or not.

 

[5030]

One of my friends owns a mega farm near Ionia, Michigan and is rotational milking I believe around 1000 cows. They are totally married to the operation 24-7, 365. No holidays, no breaks. Not my idea of fun.

 

[mjonesnh]

Grew up on a Ky. dairy farm. 7 days a week job for my dad. When were were heavy in tobacco harvest or maybe 1000's of bales of hay to bale and get in barn he would be up at 2am to milk cows to be in field at 7am. Late 70's my dad said he had enough, sold all the milk cows and switched over to black angus beef. He told me a few years later the best decision he ever made

 

[Hay Dude]

Not really how it works on farms. If expenses are higher than revenue there is no salary, LLC or not.

LOL
“Expenses” can be manipulated.
I have never needed to do anything like that, but just like with any business, it can be done.
Let’s say a farmer or any corp owner takes a $10,000/month salary for the first 10 months, then suffers a very expensive equipment loss causing him to show a loss.

Pretty simple that the farmer paid himself a salary, then incurred a huge unforeseen loss.

 

[ning]

LOL
“Expenses” can be manipulated.
I have never needed to do anything like that, but just like with any business, it can be done.

My brother in law has an antique store.
He complains about public services but pays almost no income tax.
His safe is full of gold.

 

[big bubba]

haven't seen any mention on this thread re:large foreign purchases & holdings of land/agri investments in US (mainly China) esp in water sensitive areas out west. so...what's ahead on that scenario re:this subject during uncertain times for farmers trying to make a living as the economy & political winds shift?

 

[Eagle1]

LOL
“Expenses” can be manipulated.
I have never needed to do anything like that, but just like with any business, it can be done.

Salary IS an expense and fully deductible in the right business structure. My corp was held in a trust and I was just the hired hand to run the operation.

 

[Jstpssng]

The money still has to be there. Corporations don't manufacture money out of thin air. And bankers are less eager to lend to small businesses than they are to individuals.

You are right. Yet I keep hearing people- not just farmers- italk about losing money year after year. If they are drawing a paycheck every week that partially explains how they keep going.
Also, there are ways to lose money on paper, especially as the company or corporation gets bigger.

 

[Hay Dude]

You are right. Yet I keep hearing people- not just farmers- italk about losing money year after year. If they are drawing a paycheck every week that partially explains how they keep going.
Also, there are ways to lose money on paper, especially as the company or corporation gets bigger.

You can’t lose money forever, but some sure as hell have tried!

 

[MossRoad]

Speaking of big equipment, how would you like to buy one of these, jeez.

View attachment 2834638

You and I can own one, too....

Amazon.com