Will some tractor makers not survive?

[sixdogs]

I read somewhere recently Iowa full time farm size doubles about every 10 years while the number of farms stays about the same. What is happening? Farmer wants to retire but his children have no interest in farming. He sells the land but keeps 40-80 ac just for a hobby.

I can only imagine the future of the Midwest farm as an entire generation retires with most heirs unwilling to continue the farm. Bigger equipment will lead to even larger farms as the land is sold off. Around here, it typical for a father-son team to farm 2,000 to 3,000 acres and not be terribly overworked. You can sub out the spraying and hauling and farming is basically running a combine, planter and one tillage tool. I bet you'll see 3,000 to 5,000 acre family farms before long.

 

[TomSeller]

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.

I have one Kubota with faded wheels and one with brand new looking wheels. Don't know why. Aren't wheels sourced In the US? If so, probably a quality control issue with multiple vendors.

 

[Redneck in training]

I used to know a farmer (through a HS connection when kids were younger). He farmed 6000 ac, 2000 of his own and 4000 for family. He told me when he was growing up farming was a lifestyle but now is tough business. He was watching weather in Australia, South Africa, China, India and Argentina making bets what yield they would have and what the buy price would be etc. Then he decided to build his own storage for most of his crop to give him better control for what he would sell it for. I don't know how much he had invested in the farm but my guess is several million USD just in equipment. He said there were years when the more you planted the more money you lost.

 

[Cougsfan]

It sure appears to me that small family farming is going the same rather sad direction in the US that all other businesses are going; losing out to big business. In my area, no small farms exist anymore. Most small (500 or less acres) farm owners make a barely livable income by leasing their property to large scale farmers, and then take on a second job to make ends meet of driving combines and tractors for the large farmer or delivering mail, or something such as that.
I think our country has evolved into a business climate that puts any small business at a distinct disadvantage. A lot of it is the continual large capital investment required for machinery to make the farm cost efficient and the inherit price instability with commodities.
With Potato farmers you only see two kinds: The super big guy who does thousands of acres who has an immense cash reserve and can live through bad year, or the smaller guy who tried to make it on his smaller "family farm" and no longer farms because he lost everything on that bad year. Some of the most successful farmers don't even own any appreciable amount of land.

 

[Redneck in training]

I can only imagine the future of the Midwest farm as an entire generation retires with most heirs unwilling to continue the farm. Bigger equipment will lead to even larger farms as the land is sold off. Around here, it typical for a father-son team to farm 2,000 to 3,000 acres and not be terribly overworked. You can sub out the spraying and hauling and farming is basically running a combine, planter and one tillage tool. I bet you'll see 3,000 to 5,000 acre family farms before long.

I was told that "full time" farms start at about 2000 ac. So most farms are already bigger than that. Farmer I used to know farms 6000 ac and there were only two people (him and his wife) working. He has no livestock. They had help only during harvest. His wife would run combine during the day and he was running it at night. Their parents and kids would take turns driving the truck from the combine to the storage. He had GPS and yield detector in his combine and after all was done he could plot yield for every about 100 sq yards. He had the same plot for fertilizing showing how much he spent for each 100 sq yards.
I also have friend who used to own fertilizing business. His company purchased Honda four wheeler with 20000 USD GPS and computer equipment mounted on it. Technician would drive it the field and when the computer told him he would take a sample and put it in a storage cell. Then he gave all samples and the flash card to the lab which processed it and stored the results back on the flash memory. The card was given to a driver operating the fertilizer sprayer. He drove the machine to the spot where the Honda entered the field and executed computer program. The machine then drove itself zigzaging through the field and fertilizing the field based on the lab results. The flash card was then given to the farmer. This was about 25 years ago. I am guessing this technology is more advanced today.
I just read recently the Vermeer Corp. has a self driving machines research in progress for few years. I guess all of the big ag equipment makers do.

 

[Redneck in training]

Young farmers have hard timer to get started. If the farmer doesn't have a ag related college degree most banks will not even consider lending him money.

 

[sixdogs]

I have one Kubota with faded wheels and one with brand new looking wheels. Don't know why. Aren't wheels sourced In the US? If so, probably a quality control issue with multiple vendors.

On faded wheels, I repaint with the quart cans of paint from Kubota and a quality (it's true) HVLP spray gun from Harbor Freight. Kubota paint is first class and it isn't a big project to re-paint wheels. The whole tractor looks like new after that.

 

[sixdogs]

Young farmers have hard timer to get started. If the farmer doesn't have a ag related college degree most banks will not even consider lending him money.

I have seen a number of Midwest farms where it's been in the family for generations and all the kids have to do is pay attention and not screw it up to succeed. They don't need to borrow because of that and even with that situation that would set them up for life, don't want to farm. They want the cash--fast--when the land is sold from the estate but would rather be a teacher and track coach or whatever and take cruises during holiday vacations and drink lattes at a coffee shop.

It's long been said that the first generation creates the wealth, the second lives off the interest and the third lives off the principal and spends the wealth.

 

[Turbys_1700]

Around here in the Western Piedmont of NC farming is on a much smaller scale. Most farms function as cattle operations while some full time incorporate chicken houses to ensure steady income. Small one or two man operations utilizing several hundred acres, couple hundred head, and several chicken houses. They work their tails off.

 

[ovrszd]

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..

Since you seem to have it figured out, what percentage of the government Farm Bill dollars go to Farmers?

I could write a lengthy response explaining the various USDA programs and their purpose but I'm afraid it would be a wasted effort.

So I'll just say, if farming is so easy and profitable why aren't you doing it?