How do farmers make any money?

/ How do farmers make any money? #101  
Never applied for help from uncle sam, raised peaches and asparagus, mostly peaches had over 2200 trees at one time. Made a little bit but it was go big or go home, I went home after a ice storm broke the trees down. now just raise a few acres for hay and pasture for some goats and cattle. Mostly for our own
use. When we had the peaches it was hard to find pickers that wanted to work. Best picker was a (latino) put himself thru college picking for me. Yeah he was legal. Averaged having a peach crop 3 out of 5 years. Farming is tough would I do it again, I doubt it. Counting the hours I probably made less than the pickers, but I enjoyed it.
 
/ How do farmers make any money? #102  
There is. Wife calls it the rain lottery. I call it rain insurance. It’s helpful but if luck is not on your side the premium is expensive.
I have heard of that, I guess I just considered it insurance (with a Premium ) verses a subsidy which has no premium.
 
/ How do farmers make any money? #103  
I have been in agriculture all my life. Without Government / taxpayer support our industry would look much much different. We are thankful for all the support.

Farm Programs: USDA Financial Assistance to Agricultural Producers for Fiscal Years 2019–2023 GAO-25-107174 Published: Dec 17, 2024.​

The U.S. Department of Agriculture (USDA) provided $161 billion in financial assistance to agricultural producers from fiscal years (FY) 2019 through 2023, the last year for which data were available.
Texas, North Dakota, and Iowa, in that order, received the most assistance.

Government Accountability Office (GAO) an independent, non-partisan agency that works for Congress.

Canada is about similar.
Elon will be taking a look at that. Probably shoot from the hip then later decide we need food.
 
/ How do farmers make any money? #104  
I have heard of that, I guess I just considered it insurance (with a Premium ) verses a subsidy which has no premium.
It is both. Premium and subsidized. If it wasn’t there would be no value to it. I think all crop insurance is that way but not sure anymore. Milk income loss programs kick in when price drops below a certain amount and there is a cut off amount. At least when I had that it was subsidized. And I don’t know if that is still in effect. Milk and crop insurance was over 20 years ago since I last participated. Only thing now in the rain insurance
 
/ How do farmers make any money? #105  
The problem with a lot of the farm subsidies is when you go to that EWG website database you will find that many of those subsidies go to farms with a corporation title, when you click on ownership interest you will find that the corporation is made up of doctors and lawyers, people who have never sat in a tractor seat, meaning people who really don't need it and aren't depending on it to make it until next crop season. If Musk digs around there he will find mass amounts of corruption as well.
Around here (Central NY) most of the bigger farms are LLCs, but they are family-owned. They still consider themselves "family farms," as well they should.
 
/ How do farmers make any money? #106  
Wrap your head around this. This is my cousin. It’s a dairy farm.

 
/ How do farmers make any money? #107  
I come from a farming family. My dad and uncle were significant farmers in this area. My dad, row crops and cattle, my uncle just row crops. Both made a decent living in the 50s and 60s but the 70s were the beginning of the end and both eventually went broke. As did just about every farmer in this area. Eventually. I continue to see a continual cycle of farmers going broke. It's just brutal. If you do not own all of your land, I can't see how you can make it long-term. It seems the only ones who have survived in my lifetime are ones who inherited their land. Equipment costs are staggering. Then you are the mercy of the markets and the weather, two horrendous make-or-breakers. In my lifetime, most farms have had the land leveled and irrigation installed. All of that costs lots of money and has to be amortized. And even though most farms are now irrigated, you still have to get the crop in the ground and get a stand, and a rainy planting season can really screw you up. Tough way to make a living, very stressful.
My cousins that Dairy Farm expanded and fortunate son and daughter in law are on board.

They were able to expand because several neighboring smaller operations stop farming and basically just happy to have the fields tended and keep AG exemption on them.

So far the mix of owned and very cheap leased land had made it a go and their edge continues to be certified organic… seven day a week operation but with generations to share it is possible to actually get small breaks.

My cousins husband has a twin… his twin had an early farm injury and recovered and decided farming isn’t for him and he is a city manager…

Even though they are twins the city manager appears much younger and free from the aches and pains of his farmer brother…
 
/ How do farmers make any money? #108  
Farmer I used to be.
My people were what would be considered a real small farm today. Owned by my mother's father in the 40s it had everything, milking, steers for food, hogs, chickens, fruit trees and a huge garden. About as self sustaining as it gets. By the 60s everything was phased out except the chickens and a couple of steers. Modern grocery stores contributed to that. I look back and marvel the work ethic to keep all that going.

Dad became a farmer when he married mom. By the early 60s I was learning to drive 2 cyl Deeres. I eventually worked my way up to using all the plows, discs, planters and harvesters as did my brothers that followed. I didn't get to run the combine much as Dad considered that his reward for all the toil. Bear in mind this was in the day before cabs and air conditioning.

My worst memory was picking corn on a cold snowy day with a 2 row front loader mounted on the G Deere. Really slow work. This was the time where the corn was left on the cob and transported to the corn crib. No money until spring when the crib was emptied and "shelled". I actually enjoyed that experience where neighbors would come and help all for the promise of a noon feast and it usually was. To put it in perspective the closest thing to it these days is Amish barn raising.
We would return the favor when others did the same.

Dad had a mouse run up this coveralls on year. Never saw a man strip so fast. The other farmers were rolling on the ground laughing. It became a yearly story that had to be told. Dad taped his pant legs shut every year after that which usually got the story retold when noticed.

We, the youngest got to climb up in the crib and knock down corn that got stuck. The inside of a crib is like a giant jungle gym. As we got a little older we would be in charge of shooting any rats that showed up with a 22. It was fun at the time. Fortunately our farm was fairly rat free.
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.

As teenagers we would walk beans, bale hay for others for summer income. My buddy loved baling but I tried to avoid it at all costs.

Dad would fill in the blanks by being a mechanic and kept all the surrounding farmer's stuff running. He likely could have done well at that alone. In looking at his books later I decided he did it mostly as favors because he sure never charged enough to cover the time involved.
It all worked out as he and mom raised 4 kids and built our own home by the time they were 30. Other than the basic framing the house was completed by them, his dad and an uncle. Carpentry, plumbing, electricity, hardwood floor all DIY if you will.
Looking back and marveling at the numbers there is no way on earth that could be accomplished today.

By the time I came of age I could see that this farm size could not sustain another family. Fortunately hanging around dad and grandparents I became mechanically tuned and went on to own my own machine shop by age 24. Dad would get slightly upset with me for not charging him labor on any work I might do for him but how could I? Would go back and help out when dad was sick.

Farm finances. Dad passed from cancer that I believe was caused by handling too many "safe" chemicals without proper protection. It was a different time.
When dad passed I was going over the books which mom meticulously kept. I came across one year where they showed a ten dollar profit. Thinking this was rather unique I asked mom about it and she said that she worked hard on the books to show that profit that year. I said it was ok to show a loss but her pride would not let that happen. :)

When mom passed and after much soul searching it was decided to sell mom's share of the farm. At this time it was owned by mom and her sister. I was considering taking it on but updates needed kind of killed that idea.
Ultimately we sold it to our first cousin that was farming it after dad passed. So it is still in the family so to speak. Our share didn't amount to all that much when divided by 4 but I was grateful for all the decades of work that went into it by the family.
And that is the way it was.
 
/ How do farmers make any money? #109  
Not unusual for ranchers to have names such as Land and Cattle.

Maybe farming is the means to an end and that being development?
 
/ How do farmers make any money? #110  
For a comedic explanation check out Clarkson’s Farm available on Prime.

 
/ How do farmers make any money? #113  
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
 
/ How do farmers make any money? #114  
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.
 
/ How do farmers make any money? #115  
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.
 
/ How do farmers make any money? #116  
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.
 
/ How do farmers make any money? #117  
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.
 
/ How do farmers make any money? #118  
The future? I watch all this American guy's videos from China. This is about farming and land. A short 10 minute video. Opinions?
 
/ How do farmers make any money? #119  
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.
 
/ How do farmers make any money? #120  
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.
 

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