How do farmers make any money?

[ultrarunner]

I still have several cousins that are Dairy farmers but most no longer farm as the effort outweighed the reward and the tipping point for many is when the kids don’t want to farm… so what’s the point…

My grandparents were one of 4 farms at a fork in the road… only one still farms and has become bigger picking up land to farm from the neighbors.

Another now runs a horse operation for city folks…

The farms still active mostly run Fendt tractors.

 

[Hay Dude]

I still have several cousins that are Dairy farmers but most no longer farm as the effort outweighed the reward and the tipping point for many is when the kids don’t want to farm… so what’s the point…

My grandparents were one of 4 farms at a fork in the road… only one still farms and has become bigger picking up land to farm from the neighbors.

Another now runs a horse operation for city folks…

The farms still active mostly run Fendt tractors.

I’m trying to convince my son he can teach and still take over my business. He is understandably doubtful. I have a friend who is a teacher and farms as much hay as I do. He has 2 employees and lots of mowing contracts. I think my son could double his income doing the same as my friend. His future wife is tough young lady and she could help.

I’d hate to give up all I have. Once you retire/quit, you seldom can get any of it back.

 

[ultrarunner]

Not one of the family Dairy farms that stopped has come back… the equipment gets sold after the livestock and very importantly the membership in the Dairy Co-Op is gone.

Mom and her siblings grew up in the Depression and they didn’t have much but they never went hungry and everyone had a job… kids to seniors all contributed…

Always remember how self sufficient they were… even had a small hydro in the creek for DC power… enough for a few lights and Great Aunts radio…

 

[Jstpssng]

I’m trying to convince my son he can teach and still take over my business. He is understandably doubtful. I have a friend who is a teacher and farms as much hay as I do. He has 2 employees and lots of mowing contracts. I think my son could double his income doing the same as my friend. His future wife is tough young lady and she could help.

I’d hate to give up all I have. Once you retire/quit, you seldom can get any of it back.

There is a retired teacher up here who owns hundreds of acres of farmland. He slowly bought it up when he was teaching, raising potatoes and hay in summer. He is now leasing out the fields, while slowly and strategically selling it off to avoid a big tax burden.

 

[RayIN]

For anyone wanting a long-term investment, land is reliably profitable. There will never be more land, but the population of humans grows at an ever-increasing rate.

 

[ultrarunner]

For anyone wanting a long-term investment, land is reliably profitable. There will never be more land, but the population of humans grows at an ever-increasing rate.

Yes and no…

Sometimes land is just land as seen by abandoned towns dotting the West and my visit to Detroit was certainly eye opening… 1.8 million peak and now 600 thousand in rough numbers.

 

[Flogger]

Had a chance to talk with a manager at a multiple location tractor franchise and he said at harvest time a lot of the new equipment you see is leased short term…

It gets the equipment out the door, has full warranty, presents certain tax advantages and dealer is able to sell harvest returns at a discount with factory warranty and service history…

Before, it never occurred to me farmers would lease short term and I had thought they own with a payment book.

My generation started the trend of going to college to continue farming. I wasn’t part of that trend but I educated myself about finances and have seen an amazing change over the last 40 years. Today’s young farmers are very aware of finance and opportunities. In the world I grew up in my grandfather considered being a good neighbor to be of more importance than growing the farm. There are definite trade offs.

 

[California]

Just when you think you'll have a good year, the rug gets pulled.

This lady was oblivious to the changes around her. Now she's frantic.

"Her farm had been awarded a grant worth $400,000 through the U.S. Department of Agriculture​

​

"Carlson was planning to use her USDA grant money to hire 10 temporary workers from Guatemala to help with this year’s harvest. The grant would help pay to house the required workers on her property and the visa fees and airfare to fly the workers to and from the U.S."​

 

[Eagle1]

I can not believe our government would give away 400000 to fix private housing structures....or that an actual farmer would have the time to produce such a grant application.
400k is a pretty penny for 10 temp worker for a 4-6 weeks stint. She has spend 200K before having a single temp worker or costs to transport.

Seems like a scam to get free government money to me.

 

[Hay Dude]

I can not believe our government would give away 400000 to fix private housing structures....or that an actual farmer would have the time to produce such a grant application.
400k is a pretty penny for 10 temp worker for a 4-6 weeks stint. She has spend 200K before having a single temp worker or costs to transport.

Seems like a scam to get free government money to me.