How do farmers make any money?

[Bison]

Farmers lose money per acre but make up for it by having lots of acres.



Bruce

Please tell me how works.?

 

[Bison]

For a comedic explanation check out Clarkson’s Farm available on Prime.

He is living the old saying " keep on farming till it is all gone"
The guy is very wealthy and farms for fun.

 

[Rrwjr]

I'm not a farmer, never have been, and never will be. But I'm fascinated by youtube videos of farm operations, in particular larger operation, and I can't help but wonder how they are able to survive. Maybe the answer is they aren't surviving? On the surface it looks to me like the people making money are John Deere (and others), Monsanto, and ADM. I see massive investments in equipment, and very expensive equipment at that. Multiple row crop tractors, all sorts of planters and other implements that I expect are very expensive, combines and all the different heads, specialized carts for mixing or hauling product, huge bins with auger systems to load and unload them, several tractor trailer trucks with specialized trailers, etc. Oh, and huge storage and workshop buildings, Denali trucks for everyone, few side by sides, and one or two tele-handlers. Probably a couple of skid steers too.

Can anyone help me understand how this works? What does it cost in equipment payments and operating costs plus seed, fertilizing, weed control, and proprietary seeds? How many acres typically get planted? Then what are the harvest costs, gathering, storage, and ultimate transport to a buyer? How does this break down per acre, and what is the final crop value per acre?

I have been trying to figure that out for awhile. I more or less break even or go in the hole a little. I’m not a big outfit. I run about 15 cows, most I’ve had was 36

 

[Bison]

It’s nothing now to spend $5,000 on just fixing a few things on a decent size Ag tractor. Heck it’s $1,000 just to drain & refill a CVT transmission and replace the filters.

That's why i repair and maintain all my own equipment, all it cost me is for parts and oil and filters. I farm nothing out.
It's for me the only way to keep farming by cutting out the insane repair labour costs.

 

[shooterdon]

I have personally seen many small farms fail over the years.

Some really good people came away with little for a lot of hard work. Sad that life is not fair.

It also made me realize that working smart is a lot better than working hard....but real success needs a person that can do both. And by "success" I mean financial success.

IMO most people have neither the smarts nor work ethic to be successful farmers. Those who are successful would be successful in any endeavor.

 

[Bison]

Don’t be so negative. Especially when you don’t farm.

4. You use your own money, take your own risk, and get zero handouts and still do ok farming.

It’s not just your #1,2 & 3.

Some people DO know how to manage a profitable farming business without being given a dime. Ask me how. Been doing it a long time, too. Was given nothing.

Same here, I immigrated with just the clothes on my back, a good wife and 3 young kids in tow. Got nothing given to me by no one. I started from scratch.
40 years later i own my 1800 acre ranch lock stock and barrel.

 

[D'oh]

Please tell me how works.?

Same here, I immigrated with just the clothes on my back, a good wife and 3 young kids in tow. Got nothing given to me by no one. I started from scratch.
40 years later i own my 1800 acre ranch lock stock and barrel.

You explained it Perfectly, why did you ask Him to?

Yes, there is very little Meat at the End of the Day, but 1800 Acres is worth ??? Today? Even Renting/Acre Depending on Area, can be Lucrative.

 

[Redbug]

The future? I watch all this American guy's videos from China. This is about farming and land. A short 10 minute video. Opinions?

 

[Jstpssng]

As for subsidies... if it's legal, take it. You wouldn't skip deductions on your taxes would you?

The difference is that deductions are against money I paid in, for expenses I had to make that income. A subsidy is money from somebody else's pocket; most likely, that of your great-great grandchildren, considering we are printing money to pay for the interest in our current debt.

 

[Snezzy]

I did the shelling thing at one farm that was inundated with rats and black snakes. It was a more tense atmosphere as you never knew what was coming out of the crib. I can deal with the rats but the snakes, no way.

Those black snakes, if they were the kind I think they were, are pretty much harmless except to rats. They ate the rats.
A neighbor was about to kill a black snake and my wife picked it up and took it home. "It'll eat the rats," she said. All the guys at my neighbor's place were terrified of snakes, even the small constrictors like milk snakes. Harmless, as long as it's not a copperhead or a water moccasin, around my area. We don't have rattlesnakes, but I don't know why. Mostly harmless. Those guys thought my wife was crazy. Those same guys think an electric fence is still okay if it's only shorted out to just one or two T-posts.