Making money farming??

[OrangeGuy]

An old farmer neighbor told me the story about one of his farmer friends winning a million dollar lottery. When he asked what the farmer planned to do with the money, the lucky farmer responded..."I guess I'll just continue farming until that is gone too."

OrangeGuy

 

[chuckcoug]

This has turned out to be a very informative thread. Glad I asked. I thought it might be to personal.

I got a quote for insurance to do Brush Hog/Discing work. It was $1200.00 a year. The only thing that I am not sure is if the agent has me in the right category. They have me under lawn service. To me brush hog/discing is quite different than mowing your lawn. But maybe it all averages out.

So here are two question hopefully someone can answer.

>>What is a fair price per hour/lot for discing or brush hog work?{of course all the areas are different, but it will get me started}

>>Any idea what insurance category I should be under?

Thanks for all the feedback this has been great!!!!
chuck

 

[deereguy]

I'm in SW Ohio and I owned a landscaping business (already had the tools you mentioned) and told my insurer that I would do this if requested, but I wouldn't advertise it. As business insurance, I had 1M liability and kept everything fully covered. I wanted to be covered if a rock flew out of a mower deck and hit the neighbors whatever. Three trucks/three trailers and fairly new equipment ran in the $3500-$4000/yr ballpark.

I found it hard to really make money with commercial bush-hogging, I would get call to drive for an hour, hog a small area, and drive back (seemed like contractors always called at the busiest time) and contractors aren't the quickiest to let go of the cash (if they have it). I could have charged for the travel time, but I would rather stay closer and make $ planting flowers or something ( I don't like planting flowers). I bush-hogged one lot for a developer he said, "we cleaned it with a bobcat" I walked it-looked clean so I preceeded, then ran over a "T" post that they "forgot" to get. Fortunately, it just dinged the blade. Two years ago I sharpened another "T" post by backing over it first (didn't see it in 2' weeds) and put a "T" in the rear R4 tire, profit margin went down fast after that. Disking is probably a different story. I charged $50/hr (5' hog/ 33PTO HP Deere) if it was a regular customer and I knew it was a clean field or overgrown yard, $50 first hour, $35 after.

 

[RonR]

Chuck, you'll get as many answers as reponders to what to charge.

A lot is based on where you are and how many other people are out there competing for the same thing.

I've not maximied on it yet, but here, landscape companies and contractors charge a huge amount, and generally aren't into small jobs. I'm trying to get those, but even with decent advertising, I've not gotten enough biz to keep going so far. I'm retired and part time, so I can handle it for awhile.

For example, just prior to me starting, I was asked about bidding a backfill around a foundation job, and doing some grade work. At that point, I was not experinced in pricing, and figured (did not bid) it would be a $500 job. With what I know now, I would bid $1000 or so.

The best bid they got and finally accepted was $2,000.

That told me I was too cheap.

Currently waiting for the weather to thaw, and I'm bidding to redo a community park area playground, replacing the sand, putting down new liners, and new landscape timber.

I figure two prices, what I think it will cost me and what I think a "real" contractor would bid. I go about double what I think it will cost me, then add a few hundred for risk, and generally is less than what I think a real guy would bid. I give the customer a firm, fixed price for the whole job.

I knew going in I didn't want to do work and not make money, even though my first few jobs I horribly underbid! Now if I get a job, great. If the customer thinks I am too high, he can rent/buy his own stuff and provide his own labor. I've not lost many jobs I've bid on yet........

Hope this helps.
ron

 

[swines]

You need to find a specialized crop(s) for your area. I have a friend who raises 3 acres of lavender - makes a lot of money per acre and the entire crop is pre-sold every year. Another acquaintence raises chocolate flowers - I'd never heard of them but the seeds go for an outrageous amount per pound. A neighbor raised both herbs and vegetables under contract to a number of local high-end restaurants. The local small farmers in my area are forming a farmers co-op to sell to the two local food co-ops. The food co-ops are participating through placing contract orders for specific crops (mostly vegetables, flowers, and herbs). Another person raises nothing but garlic. He specializes in "gourmet" varieties and has pre-sold orders for about 30 different types.

It's certainly possible to make money on 5-acres, you just have to find the right specialty crops to raise for your area.

 

[wjmst]

That's 'cause he hasn't blown a huge wad of cash on tractors!

And they don't pay taxes!

 

[N80]

I make my living farming & my tractor is one of my primary tools. I dont grow food crops, i grow beautiful grass.

Isn't that illegal? There are all sorts of small farm opportunites if you want to go that route. A hunter friend of mine found a smallgrass farm up in the woods one day last year. For some reason the grass farmers ran when he walked up on their field. Next thing you know there's aiplanes and helicopters overhead, bloodhounds, cops everywhere....

 

[mopiflyer]

And they don't pay taxes!

The Amish here in Indiana pay taxes...just like everyone other honest citizen. They do not...or at least some that i know ...take social security even though they pay into it.

I think the reason they are fairly successful is that they 1: work together and 2. diversify. I have also delt with them several times and they are very fair and honest. In Northern Indiana, there is a large mobile home and travel trailer business. They like to hire the Amish boys for their work ethic.

 

[deereguy]

mopiflyer...is what I was referring to: they work together and they diversify. They keep their overhead low and maximize profits...that's how ya make $ with ANYTHING.

I read a series of books a few years ago by Gene Logdson, very interesting reading on farming in general and makes you think.

 

[rox]

We are farmers and the main thing about farming is finding clients for your product. It would be great if you would fill in your profile where you are from. You might get more respnses. I think if I didn't have a farm I would have a mill. Figure farmers work all year but mills only work a couple moths a year. Of course then there is bottling and selling but it still appeals to me.