OT: farmer's insight

[horshack.sixpack]

from an article about rising fuel costs impacting planting season:

"This year, it’s pushing $5 a gallon. According to the most recent statistics, 86% of farmers in America run small family farms, defined as having a gross income of $350,000 per year or less. And the majority of those farms have high-risk profit margins of 10% or less. So rising diesel costs pose a serious threat to their ability to stay in business."

That seems like a profit margin so low as to not make it worth the trouble in a good year. What am I missing?

Article if anyone cares...

 

[dickiedawg]

from an article about rising fuel costs impacting planting season:

"This year, it’s pushing $5 a gallon. According to the most recent statistics, 86% of farmers in America run small family farms, defined as having a gross income of $350,000 per year or less. And the majority of those farms have high-risk profit margins of 10% or less. So rising diesel costs pose a serious threat to their ability to stay in business."

That seems like a profit margin so low as to not make it worth the trouble in a good year. What am I missing?

Article if anyone cares...

According to that data, 50% of farms are either “retirement farms” or off-farm occupation farms. I’m not exactly sure what that would be but it’s probably not what you think of as a row crop farm.
I read something a year or so ago that said a significant percentage of “farms” are basically big yards that someone classifies as a farm for tax reasons or something.

 

[patdog]

According to that data, 50% of farms are either “retirement farms” or off-farm occupation farms. I’m not exactly sure what that would be but it’s probably not what you think of as a row crop farm.
I read something a year or so ago that said a significant percentage of “farms” are basically big yards that someone classifies as a farm for tax reasons or something.

I’ve seen a lot of questionable “farms” in my day. I don’t ask & they don’t tell me.

 

[DesotoCountyDawg]

from an article about rising fuel costs impacting planting season:

"This year, it’s pushing $5 a gallon. According to the most recent statistics, 86% of farmers in America run small family farms, defined as having a gross income of $350,000 per year or less. And the majority of those farms have high-risk profit margins of 10% or less. So rising diesel costs pose a serious threat to their ability to stay in business."

That seems like a profit margin so low as to not make it worth the trouble in a good year. What am I missing?

Article if anyone cares...

According to that data, 50% of farms are either “retirement farms” or off-farm occupation farms. I’m not exactly sure what that would be but it’s probably not what you think of as a row crop farm.
I read something a year or so ago that said a significant percentage of “farms” are basically big yards that someone classifies as a farm for tax reasons or something.

A lot of those farms are people who work a second job and have either a hobby farm or actually farm but it’s not their main income. I know a lot that do that. Also a farm in term is pretty broad and yes those small farms have razor thin margins. That’s why you see big row crop farms and not a lot of small ones. You have to be big in order to spread your costs out.

 

[DawgsGoneWild]

A “friend of mine” has a “Farm”. Has 1/4 acre of corn and peanuts going. I have an Agricultural tax exemption. I’m i. Texas though. Different over here

 

[L4Dawg]

delete

 

[horshack.sixpack]

A lot of those farms are people who work a second job and have either a hobby farm or actually farm but it’s not their main income. I know a lot that do that. Also a farm in term is pretty broad and yes those small farms have razor thin margins. That’s why you see big row crop farms and not a lot of small ones. You have to be big in order to spread your costs out.

I figured that there is so much overhead that to truly be a farmer, you have to do it at scale. I suppose that these smaller "farms" are just as was stated above, something that someone enjoys doing that is overall worth it for them (maybe some combination of liking it and tax breaks).

 

[DesotoCountyDawg]

I figured that there is so much overhead that to truly be a farmer, you have to do it at scale. I suppose that these smaller "farms" are just as was stated above, something that someone enjoys doing that is overall worth it for them (maybe some combination of liking it and tax breaks).

You have alot of people who have cattle and work another job. Those are considered farms regardless.

You know which county in Mississippi has the fewest farms? It’s not what you would think…it’s Tunica County. Everybody here is big so there’s actually fewer farms.

 

[Dawgbite]

DCD, how much fuel did you have on hand before the price went up? My nephew farmer said that he had enough in tanks to get to harvest season. He said he’s just hoping that it goes down by then.

 

[Boosh]

Did they write the same article in 2022 when fuel was this high?

 

[patdog]

A “friend of mine” has a “Farm”. Has 1/4 acre of corn and peanuts going. I have an Agricultural tax exemption. I’m i. Texas though. Different over here

1/4 acre “farm.” That might be a record.

 

[turkish]

That seems like a profit margin so low as to not make it worth the trouble in a good year. What am I missing?

Article if anyone cares...

For many, there’s a connection to a legacy and to land that’s hard to just decide to up and liquidate. Most wouldn’t understand.

 

[WrapItDog]

1/4 acre “farm.” That might be a record.

You see some small rooster farms in Tippah County.

Must be making decent money. All the roosters have their own house**

 

[L4Dawg]

You see some small rooster farms in Tippah County.

Must be making decent money. All the roosters have their own house**

Chicken Geroge

 

[DesotoCountyDawg]

DCD, how much fuel did you have on hand before the price went up? My nephew farmer said that he had enough in tanks to get to harvest season. He said he’s just hoping that it goes down by then.

Nada. Fortunately for us we have had to do very little field work other than just spraying and planting so our diesel consumption is about half of what it normally is.

 

[DesotoCountyDawg]

Did they write the same article in 2022 when fuel was this high?

I’m pretty sure they did but commodity prices were much better too so you could handle the higher costs. 2022 was the first year that input costs really starting kicking people in the nuts.

 

[She Mate Me]

One thing that seems impossible in today's farm environment is the idea of a young person buying land and making a living. Land costs are completely divorced from the economic realities of trying to make a living on a relatively small plot of land.

 

[DesotoCountyDawg]

One thing that seems impossible in today's farm environment is the idea of a young person buying land and making a living. Land costs are completely divorced from the economic realities of trying to make a living on a relatively small plot of land.

It’s tough to buy land (large tracts) now unless you’re very well off. Nearly all the land around us is corporate owned by huge investment companies. Land values have gone up significantly in the last 15 years which is good if you own land but if you’re interested in buying farmland it makes it tough to even make a down payment.

 

[She Mate Me]

It’s tough to buy land (large tracts) now unless you’re very well off. Nearly all the land around us is corporate owned by huge investment companies. Land values have gone up significantly in the last 15 years which is good if you own land but if you’re interested in buying farmland it makes it tough to even make a down payment.

This may be an ignorant question, but is there any fertility left in Delta farmland anymore or is growing crops completely dependent on outside input of fertilizer?

 

[DesotoCountyDawg]

This may be an ignorant question, but is there any fertility left in Delta farmland anymore or is growing crops completely dependent on outside input of fertilizer?

The fertility is the same. We fertilize now like we did 50 years ago, but just more efficiently.

Saying that farming is “mining the ground” is a little bit of hyperbole. Certain crops take more nutrients out of the ground but those are easily replenished either naturally or we can apply them back in and equal it back up.

 

[She Mate Me]

The fertility is the same. We fertilize now like we did 50 years ago, but just more efficiently.

Saying that farming is “mining the ground” is a little bit of hyperbole. Certain crops take more nutrients out of the ground but those are easily replenished either naturally or we can apply them back in and equal it back up.

What's a typical 12 month rotation for you? Are you harvesting more than one crop per field in a year? Cover cropping at all?

 

[GloryDawg]

You have alot of people who have cattle and work another job. Those are considered farms regardless.

You know which county in Mississippi has the fewest farms? It’s not what you would think…it’s Tunica County. Everybody here is big so there’s actually fewer farms.

When I was growing up my stepdad was a fireman. We about 30 heads of cow. We had seven sows and one boar. Sold feeder pigs every year. Also, he planted about 500 acres of soybeans. Could not do that now. We had a 30-acre hay field and planted 15 acres of corn. He also had a small sawmill. We made skids for factories and warehouses in Canton. We also cut lumber for Thomas Town chairs. I used to dread summer break. Everything is gone now except about 200 acres in which 10 acres have a lease with a cell tower.

 

[The Cooterpoot]

Bomb the **** out of Iran and be done. Trump has pussed out on a war he created.

 

[DesotoCountyDawg]

What's a typical 12 month rotation for you? Are you harvesting more than one crop per field in a year? Cover cropping at all?

We don’t double crop. You can do that if you have wheat and then follow it with soybeans after harvest but we just grow rice and soybeans. Both are planted in the spring and harvested in the fall.

We don’t use cover crops…I’m just not on that train yet. We do try to use a lot of no till or minimum tillage practices when possible.

 

[She Mate Me]

Bomb the **** out of Iran and be done. Trump has pussed out on a war he created.

I don't want a debate, but wtf does this even mean? We've likely hit the vast majority of he military targets we felt we had to take out.

It should be obvious that we need to be very cautious about doing things that are going to cause civilian deaths directly or indirectly.

What do you want to bomb the **** out of??

 

[DesotoCountyDawg]

Bomb the **** out of Iran and be done. Trump has pussed out on a war he created.

Don’t ruin this thread.

 

[She Mate Me]

Don’t ruin this thread.

Sorry, I should have left it alone.

 

[horshack.sixpack]

Sorry, I should have left it alone.

It’s hard…

 

[Choctaw Dawg]

We don’t double crop. You can do that if you have wheat and then follow it with soybeans after harvest but we just grow rice and soybeans. Both are planted in the spring and harvested in the fall.

We don’t use cover crops…I’m just not on that train yet. We do try to use a lot of no till or minimum tillage practices when possible.

Most folks I know that farm rice couldn't get rid of it the past couple of years. Is the market looking any better for it?

 

[DesotoCountyDawg]

Most folks I know that farm rice couldn't get rid of it the past couple of years. Is the market looking any better for it?

It’s still pretty tough. The problem a lot of these guys are running into is the milling quality is so bad that they can’t find a home for it. Also, if you’re not a member of one of these cooperatives like Riceland or Producers in Stuttgart it’s really tough sledding because they have the ability to move it and get it somewhere and get your rice but if you’re on your own, it’s a lot harder right now.