Will some tractor makers not survive?

[ovrszd]

Bar chart is in hectares, so you are well below average my friend, lol.

Way to ruin it for me.....

 

[DavesTractor]

Urban sprawl. Acreage owners that do not claim "farmer" status on their taxes. Understand, your data comes off the tax records.

No farmer I know retires and keeps 40-80 acres for a hobby. If he desires to still "farm", he keeps all of his land and farms. Or in the larger cases, keeps his land and rents it out. Still claims farmer status on his taxes so little change is noticed.

We have some extended family that just sold a roughly 2000 acre farm, but kept about 100 acres to lease out. Allows a farm business for tax reasons, allows a write-off of a new pickup every once in a while, and you can still keep your identity as a farmer. I think when a farmer sells all of his ground, it's a very hard adjustment. Sure he went from land rich to cash rich, but there is something about owning some property, especially if it has been in the family for generations, that is important. And in a less nostalgic way of thinking, sometimes spreading out capital gains is an issue as well.

 

[ovrszd]

We have some extended family that just sold a roughly 2000 acre farm, but kept about 100 acres to lease out. Allows a farm business for tax reasons, allows a write-off of a new pickup every once in a while, and you can still keep your identity as a farmer. I think when a farmer sells all of his ground, it's a very hard adjustment. Sure he went from land rich to cash rich, but there is something about owning some property, especially if it has been in the family for generations, that is important. And in a less nostalgic way of thinking, sometimes spreading out capital gains is an issue as well.

A very good friend of mine is a very large farmer. Plants app. 25K acres of corn/beans each year. His motto is "they ain't making anymore land, buy, don't sell". I'll die owning my little piece of paradise.

Average land price here is $2800 per acre. Average cash rent price on tillable land is $150 per acre. So, $2800 has a return of $150 per year. That's 5.3% annual. Not fantastic. But not bad. Wonder if your example is getting 5.3% return on the money he received from selling the land. It's a total coin toss.

 

[DavesTractor]

A very good friend of mine is a very large farmer. Plants app. 25K acres of corn/beans each year. His motto is "they ain't making anymore land, buy, don't sell". I'll die owning my little piece of paradise.

Average land price here is $2800 per acre. Average cash rent price on tillable land is $150 per acre. So, $2800 has a return of $150 per year. That's 5.3% annual. Not fantastic. But not bad. Wonder if your example is getting 5.3% return on the money he received from selling the land. It's a total coin toss.

Land where the farm was sold is over $12,000 an acre, rent is about $475/acre, so about 4%. I think they kept a chunk of it mostly because they wanted to. Not because it was a great financial move.

Where we are in California, good land for walnuts runs roughly $20k/acre. It makes it pretty tough for a young man to go into farming when 40 acres is $800k and you still have to install irrigation and buy the trees. Having $2/lb walnuts for a few years ran that up. If you got 2 tons per acre which happens in good years, 40 acres will gross $320k. Of course if nuts are soft at $0.75/lb and the crop is light at 1.5 tons/acre, that drops to $90k gross. A huge difference. But such is the life of a farmer. And in some ways, such is the life of a guy that sells orchard tractors.

I have a ton of respect for farmers. It takes guts, a lot of hard work and a lot of capital or a good credit line. Seems it is boom or bust.

 

[roadhunter]

Land where the farm was sold is over $12,000 an acre, rent is about $475/acre, so about 4%. I think they kept a chunk of it mostly because they wanted to. Not because it was a great financial move.

Where we are in California, good land for walnuts runs roughly $20k/acre. It makes it pretty tough for a young man to go into farming when 40 acres is $800k and you still have to install irrigation and buy the trees. Having $2/lb walnuts for a few years ran that up. If you got 2 tons per acre which happens in good years, 40 acres will gross $320k. Of course if nuts are soft at $0.75/lb and the crop is light at 1.5 tons/acre, that drops to $90k gross. A huge difference. But such is the life of a farmer. And in some ways, such is the life of a guy that sells orchard tractors.

I have a ton of respect for farmers. It takes guts, a lot of hard work and a lot of capital or a good credit line. Seems it is boom or bust.

Farmers are an interesting breed. They pretend to be conservative and will tell you all about it once they get back form the USDA Welfare office where they milk the taxpayers for subsidies and handouts. It is nothing shot of amazing how many programs there are available to farmers and even things like vehicle plates, CDL/DOT requirements, etc.. they slide by with a different set of rules than the rest of us have to play by..

 

[AGRIMAN]

Farmers are an interesting breed. They pretend to be conservative and will tell you all about it once they get back form the USDA Welfare office where they milk the taxpayers for subsidies and handouts. It is nothing shot of amazing how many programs there are available to farmers and even things like vehicle plates, CDL/DOT requirements, etc.. they slide by with a different set of rules than the rest of us have to play by..

Comments like that really should be ignored, but I bet you have not missed any meals latest.

 

[roadhunter]

Comments like that really should be ignored, but I bet you have not missed any meals latest.

LOL. Missing meals?? That's funny. I don't need the government to control the price of food. Do you need the government welfare checks to survive?

It only bothers you because it's true. I'll be happy to expand further if you like and give examples.

 

[Sawyer Rob]

LOL. Missing meals?? That's funny. I don't need the government to control the price of food. Do you need the government welfare checks to survive?

It only bothers you because it's true. I'll be happy to expand further if you like and give examples.

Got any kids, or kids in school??

SR

 

[sixdogs]

Have saw that for years in regards to Kubota tractor wheels.... They fade MUCH faster than the rest of the tractor.

Paint fading is probably fixed now and was a sporadic issue. Some faded but most didn't. I have seen some sit outside for 10 years and not fade but also seen some that faded after a couple of hot summers. Beats me.

 

[AGRIMAN]

LOL. Missing meals?? That's funny. I don't need the government to control the price of food. Do you need the government welfare checks to survive?

It only bothers you because it's true. I'll be happy to expand further if you like and give examples.

I'm sorry, I almost forgot. All your food comes from the grocery store doesn't it. It's amazing how all that food just magically fills those places. You are right, we are just a drain on the tax payers. You did know that we secretly don't pay taxes either right?

I sure hate you finally figured us farmers out. It's been a really easy ride until now. You should see all the people down at the ASCS office every year just standing in line waiting to risk everything they own just so we can get those free hand outs.

Just remember, about 4.30 in the afternoon when you finish eating that nice dinner don't thank a farmer, thank your local grocery store. Then, when you retire to your easy chair about 5.00 to internet farm, I'll still have several more hours to go in order to paid for my welfare check.