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I just read a depressing article which says that over the course of a farmers career, say 25-35 years, given all the ups and downs, good weather and bad, poor prices and good prices and ever increasing input and machine costs, on average, the return for growing and selling crops is zero.

The article went on to say that basically farmers are paying for assets like land and machinery and don't come out drastically ahead until they cash in on those when they quit.

Now the article didn't elaborate on which types of farmers these are, if BTOs farming 20,000 acres are different, or the smaller guy who downsized and is out of debt.
 

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Want to post that article for us jazz?
Who is the author?
What might the motive of the article be? (who might benefit from such and idea?)

It is easy to focus in on one aspect of an industry and not let the truth get in the way of a good story. There are portions of the population that think that with all the shiny new paint around that there must be tons of money in farming and they definitely need to understand that crop insurance doesn't insure profits in Canada and subsidies are not the norm here either. Farmers around the world all have very different risks to manage that can wipe out a year so easily. Many of these risks are not insurable either. That being said, there are profitable farms and unprofitable farms within the same district and this is not always by size.. It seems to come down to management.

Danny Klinefelter describes it well in his material. Everyone should take the time to atleast look him up on youtube, Agriwebinar® - Agriwebinar.com or at a live event.
 

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Do we make money? We can become assets rich if we play our cards right so yeah we cant be doing too bad. Lot of work and dedication for weather or economic disasters that can bring us to our knees wondering if we will put food on the table but there is hope in the midst of everything that we could strike it rich, highly unlikely it will go right for me, thats when the hail storms show, but we can still dream one day the stars will line up
 

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Agriculture/farming is a pretty decent place to be, especially in the last decade and I think going forward. Too many thing go wrong at the same time, it could get really rough, loose your shirt, that what keeps us up some nights. But overall I think we as a whole make out ok through the ups and downs.
 

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Im pretty sure I can pencil out $100/acre profit on my farm after all expenses (except tax) even this shitty year. Thats not so bad, and boy oh boy do I make a ton of mistakes! Im a 4th generation farmer, but NOTHING has been "given" to me, but it sure helped having the bank of dad behind me when the banks wouldn't touch me…
 

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What generation your farm is on makes a big difference in my opinion.
I don't think it matters as much which generation it is unless you have the farm handed to you(which often creates complacency...) I think it has more to do with when a farm goes through it's transitional or "growth" phases. All successful farms/businesses need to grow, when and in what manner they do this will have a huge impact on profitability! So really it boils down to management. And yes farmers make money although some are not reaching their potential.:wink:
 

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What generation your farm is on makes a big difference in my opinion. So many variables though from farm to farm.
Yup. The most successful farms here, are the ones who have only had to buy their farmland once. And that was great grandpa! Two farms can "manage" identically, but the one with intergenerational inherrited land, is going to look more profitable.

Around here, we are all good producers, good managers, in my view. But it is the ones who were handed off a good hunk of a land base which are really able to move along and keep expanding with ease.

Regarding making money or not. Yes, we make money, if we did not, we would not be farming! But it is a cash poor, asset rich business through necessity.
 

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Statistics don't lie but liars use statistics .Or something like that.Social media also said a Ag degree was worth less than a degree in acting. Farming was a waste of time. We would all be hungry fast if we had to depend on actors to feed us. Being in the same state as Hollywood have seen a few come to the country and play.
 

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Im pretty sure I can pencil out $100/acre profit on my farm after all expenses (except tax) even this shitty year. Thats not so bad, and boy oh boy do I make a ton of mistakes! Im a 4th generation farmer, but NOTHING has been "given" to me, but it sure helped having the bank of dad behind me when the banks wouldn't touch me…
A "shitty" 20 bushel wheat crop at 5 bucks is 100 gross.

I guess its all in the definition.
 

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If it was so profitable how come most of us need credit to put in a crop. after a few years a viable business should be able to stand on your own feet and run on a positive cash flow. It used to be that if you could afford to buy a vehicle, you would do so with cash, if you couldn't afford it you got it on payments, now you can afford a vehicle if you can make the payments.
All you have to do is drive across the province and see where the nice big farms are, they have the location to be more profitable than others. Already in my area the least productive land went into pasture because it does not pencil out, if the inputs keep getting more expensive, and commodity prices still stay flat, i see more of the poorer land will be turn into something else. Some guys have some wicked good land and they make money, some like me, are not so lucky and will be the first to fall behind. We are not all equal, simply by location and micro climates. My area is still in denial, but if this keeps up i can see a few auctions around here by order of the bank.
 

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Yup. The most successful farms here, are the ones who have only had to buy their farmland once. And that was great grandpa! Two farms can "manage" identically, but the one with intergenerational inherrited land, is going to look more profitable.

Around here, we are all good producers, good managers, in my view. But it is the ones who were handed off a good hunk of a land base which are really able to move along and keep expanding with ease.

Regarding making money or not. Yes, we make money, if we did not, we would not be farming! But it is a cash poor, asset rich business through necessity.
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