Thanks Guys. Now...

Got the tractor thing settled... Does any one have a couple quarters of land and about $60,000 I could borrow? : (

I got a couple of acres and $60 I could borrow ya. I know how you're feeling though. It is darn tough to get started in agriculture any more. Price of equipment is high, land is high, and rent is high. All it takes is a downturn in the farm prices and it is a recipe for trouble.

Just putting together a little down payment to get started seems impossible. I shouldn't complain. I have a job and some cattle and a place in the country. Seems I'm doomed to spend 50+ hours a week for the rest of my life making someone else rich, though.

I hear what you're saying. Sad part is, if I am realistic about things, my beef herd of 50 cows generate enough income to meet the demands of daily operation on the farm, but anything "extra" comes out of my day job income. If both the wife and I didn't work full time off the farm, we couldn't afford to farm. It shouldn't be that way, but sadly it is.

Everything's relative. I've farmed since I was 12 years old. That's when I rented my first place and planted corn. My wife worked as a nurse for a lot of years,worked factory jobs and whatever she could get before that. I drove milk truck for two years,worked at the elevator one fall. We just finally got out of debt about two years ago now that the kids have all been out of the house for several years. It's never been a walk in the park. Takes time and an attitude that you're gonna farm no matter what,that there is no other option.

Very true. Most people don't understand that I do this because it is "fun". To me it is very enjoyable. I'd rather work on the farm than take overseas vacations, go to disney world, etc. I think my wife and I will be exactly as you just described. Our kids are 2 and 4, and we have to spend about $75,000 to fix up the old farm house and barn. By the time we have that debt paid off, it will be time to pay for college educations for our girls.

in-too-deep
When I first started out you had to prove to the banks you didn't need the money before they would loan you any.

The reality of farming is you have to farm 2-3000 acres to make it or be a sepciality farmer. There are a lot of small operations going belly up when it floods or doesn't rain for a few years. Not to mention, it costs big bucks just to plant corn. The average individual working for someone else doesn't have deep enough pockets. Just like the housing market pre 2008. Banks loaned money to people who couldn't pay it back. Farming is the same way, banks have gotten a little smarter.

Small time farming is just a hoppy. Wish you well. Instead of working 50 hours a week for someone else, you will be working 100 hours a week for yourself. Hope you have an understanding wife that brings in a pay check and can provide you health insurance. I worked with a woman who did just that for her husband who farmed 2000 acres. She couldn't retire for insurance reasons.

That said, if you have a farm worth over 5 million, when you die, 40% goes to uncle sam. The lawyers and probate will take a cut too. So goes the mega farmer when he dies unless you get a good estate planner.

This is just my take on farming. The family farm is on it's way out. Investors will buy up the land, like big insurance companies, ADM, seed corn companies, etc. A large company never dies, so no estate taxes. Stock holders will someday own land, not the individual.

Don't give up your dream and don't give up your day job either.

George

Well welcome to adult hood!!!! I am willing to bet that just about everyone that is farming on this site started out working for someone else.

Remember you are wanting to do something that guys are willing to do for a break even money wise. So that make it tough to start out and then make a living long term doing that.

Also right now is close to the top of a value/price bubble. This is the time to be building up a cash reserve and credit history to be ready to buy after the bubble goes bust.

So for now build that reserve and maybe grow what you have slowly.

Old saying" Luck is when preparation and opportunity meet" So get prepared!!! Then be ready to jump on that opportunity.

50 momma cows ought to pay , not cost, do you have plenty of grass? are you overstocked and have to buy feed year round? Sometimes less is more.

JD Seller,

My daddy said the same thing, Luck is when preparation and opportunity meet" So get prepared!!! Then be ready to jump on that opportunity.

Thanks for the old saying. Haven't heard that in decades.

George

One sticker I see with a cow calf farm now is, the feed the mama cow eats over winter , is worth about the same as the calf she can give you. Almost better to sell the feed, custom pasture someone elses stockers for the summer. No liestock,no deadstock.

Consistency is the key though. I never knew anybody who prospered by bouncing in and out of things. When feed prices drop,and they will,the one who still has his cattle will be in the cat birds seat.
I remember way back in the early 70s,my uncle saying he was wasting his money feeding his corn to cattle,he could make more selling the corn. How many times have we seen that whole thing cycle back and forth since then? I wouldn't have wanted to pay the capital gains on the cow herd then bought them back over and over that many times.

No, I'm right at capacity for the pasture, hay, and crop ground that I have. But, when you factor in the price of fuel, equipment upkeep, fertilizer, seed, building upkeep, insurance costs, and replacing worn out machines, it just about takes it all. Yes, my net worth keeps increasing by the updates that are done each year, but we couldn't "live" off from the farm's income on top of what I just mentioned. Shoot, insurance costs alone require us to have good insurance plans through our employers. I guess what I was saying is the income that I generate goes back into the farm to make it better than it was the year before.

that bull george here in SD most all land is bougt be farmers about 10% by investers and it just as high here as any place

baby steps, that is all I can tell you. I work part time in town in a warehouse and take ground as I can get it and update my equipment when I'm able. I have come along way the last 5 years. Further than I ever imagined possible. Just keep working, and make sure you take time and keep a healthy relationship with your wife. It's easy to neglect them when you get busy.

Good saying. My Dad had another. "Hogs will root their way out of debt"

Kent, Investors getting into buying farms is just my prediction of the future, because of the changes in tax codes. This is not an indication of what is happening now.

We will have to wait and see what happens.

Does anyone know of a $10,000,000 farm and equipment that went through probate? If so, how much of the farm had to be sold to pay for the taxes?

George

It's a rough couple years here, you know what my hills and low ground look like, a month ago 520 acres sold around me, several parcels a mile or 2 north, same ground. Brought $9000 to 12,0000 per acre. Sheez! We have some 200 bu ground here, but in dry years the hills dry off, in wet years the lows drown out, an honest fella would say 175 bu average yield is a real, real good one here.

Don't know we're $12000 will ever come from.....

Farming is so tough to get into, 10 years go by and you seem like nothing improves, work work work and got nothing....

Get to my age, and it finally falls into place a little easier, all those years start to pay off.

But it's a long time coming, and the hill in front of you looks pretty steep sometimes.

And as the one guy said, make time for the wife, but in your case I'm sure you need to keep up as much as anything. mine took over the big tractor, was planting a few years ago and sheez, she was getting way ahead of me with the field cultivator, I had to plant pretty late to keep up......

Paul