(800) 853-2651
SHOP NOW

Why is a no brainer decision so hard to make??

super99

super99

Well-known Member
I couldn't decide whether to put this here or on tales, so I'll get the tractor part out of the way first. 2- Oliver 1850 diesels, Row Crop 88, JD 70, Farmall 400. There, that's done. I have 65 acres that is planted 1/2 corn and 1/2 beans. The farm belonged to my grandparents, it's been in the family since 1945. My goal was to retire and farm my little farm to keep busy. The neighbor to the east put his whole farm in the Bee and Butterfly Program thru the FSA. When we were at the FSA office today paying off the sealed corn loan I asked about the program and what it pays. If I put 31 acres in the program, they will pay me $260.94/acre, $8128/year total. If I put the whole farm in, they will pay me $285/acre, $17,454/year total. This is a 10 year program. I'm 64, so the odds of me ever farming the place again are slim to none. The only time I came close to making that much money off of this place was when corn was $8 and beans were $16 and that didn't last very long. I have more that enough machinery, paid for, to farm it, but still, that's a LOT of money for this sandy hill farm. I have severe arthritis in my spine and knee, not sure how much longer I can work and farm as it is now. I went to the bank and paid off the backhoe and paid 1/2 of my operating loan for this year off and talked to him about it. He said it seemed like too good of a deal to pass up, dollar wise it seems like a simple decision to go ahead and sign up for next year. Why am I so reluctant to give up something I enjoy doing, knowing that I won't be able to do it very many more years anyway?? There are enough neighbors close that if I want to drive a tractor, all I have to do is go offer and I'll be busy spring and fall. My wife is turning 62 this fall, I need to keep working for the insurance till she turns 65, but not even sure if I can go that long. Looks like it should be an easy call to make, why am I so reluctant to do it?? Chris
 
Part of what makes it a hard decision is you are giving up control. You also have probably had a life long dream of farming in your retirement which wouldn't happen. I can relate to how hard the decision would be. If I was in your shoes I would be having the same problem making a decision. So for me the final decision would be based on having other things I like to do that will occupy my time instead of farming. In the end the decision really isn't about money unless you really need the maximum income from the farm to make retirement work.
 
I'm in a similar fix, except I'm about ten years older than you. Believe it or not, I just bought a NEW tractor. But, I also have horses to drive; I can mow/make hay with the horses if I want to, etc. I do believe we've gotta: 1) remain physically active and 2) keep learning and 3) have a purpose/purposes in life. By purposes, I think I mean getting involved where and when I can in helping others. When my dad retired, he sold his dairy herd, had nothing to do and went downhill fast. I'm determined to try to stay active, continue to enjoy life and (hopefully) leave this world just a tiny bit better because I was here. Good luck on one of the hardest decisions of your life! kelly
 
What happens to the ground during the bee and butterfly years? Does it require any special effort of your part such as bush hogging after butterfly season or keeping noxious weeks and trees cleaned out? I'm on the monarch butterfly trail here in East Texas and the favorite food for the Monarchs is milkweed which is a noxious weed and lots of money previously spent on eradicating it. Funny where our tax dollars is doled out these day. I used to have a couple of grain farms in the mid-west and let the bee keepers use my fields and meadows for free as I realize how important bees are to our food supply. I realize the lure of the program and it does make economic sense but only you can decide whether it is right for you and your family. Best of luck with your health and retirement.
 
Take the FSA money from your land it is a sure deal if you must farm find some to rent give up the rental when you can no longer farm.
 
Consider putting half in, and farm the rest. If it"s an on-going program, you can put the rest in later if it"s a better fit.
 
One thing to think about is getting into an income tax problem when you have pure income with fewer deductions. It's akin to a farmer retiring and having the crops from the last year for income but no farm expenses next year to offset the income. Will the FSA cost share the seeding expenses? Some of the less common plants they want you to seed are expensive. You might have to do soil tests or show them recent soil tests. They want to be sure the fertility and PH in your soil will be adequate. I had some problems with high PH in some soil I wanted to put into CRP for a windbreak. The PH was 7.8 and they told me some of the tree varieties I wanted to plant would not work there. After the ten year contract is up what do you plan to do? If you decide to farm it again will some of that vegetation turn into hard to control weeds? Just rambling with a few questions you might want to ask them.

That said, if you can work it out, go for it. It's like retirement income from your farm. You don't have to negotiate rent every year either.
 
Not long ago milkweeds were a noxious weed and you got fined if you didnt control them. Miserable weed.

Now they pay you to plant them and let them grow.

Its nuts.

Like most other businesses, ag needs a safety net program for the bad times. But, from the 1980s already, they just have non farmers come up with odd additions and ideas that make no sense to farming and growing crops.

This current go round, the fedral govt decided to not accept any new fragile lands into to he program in some areas, and then to pay obscene amounts of rent in other areas to sign up new land ito the program.

Some farm program is needed; but too many cooks in the kitchen dreaming up very odd programs and payment plans.

Paul
 
Chris the logical "math" side of the decision is easy, sign up today and don/t wait. The self worth and "feeling" side says wait a minute as I do not want to quit farming. Your health also makes signing up at least half of the farm a good choice. The next few years are going to be tough to make much money farming.
 
Probably because you have some pride left and it makes you feel icky and a little shameful taking Gov't Farm Welfare but you'll get over it as millions of others have as witnessed by the
20 Trillion$ National Debt.
 
big red, you said the key word "purpose". He got to have a purpose the rest of his life. I'm 81 and h*ll even my back yard garden has a purpose, "save costs at the supermarket".
 
(quoted from post at 04:22:09 07/07/16) I guess I don't understand how you don't farm the ground, but still get paid. Who pays you? Stan
Click to expand...

One guess, Stan... me, you and every other tax payer. And we wonder why non-farmers get upset with us.
 
I just don't get this theory. The worst tax bracket is 35% (I highly doubt 99 is in that). Why would you spend a dollar to save 35 cents if you don't have to. Send me your dollar and I'll send you 50 cents back. Renting ground to keep farming, if that's what you want, is great. Doing it for a tax break doesn't make sense. BTW, I would have signed up for that deal and never looked back, especially with those health issues. That kind of income is like a second social security.
 
I hardly think taxes with no deductions will be a problem on $17,000. After the government takes its share, you'll still have more left over than you would after paying for fuel, parts, repairs, seed, fertilizer...

That right there just stymies me to no end: The government TAXES the money it just handed to you! "Here's $5, now give me $2 back." How does that make sense? Why not just give you $3 and be done with it?

I've never understood why the government taxes its own handouts, taxes its employees, etc.. You'd think if you worked for the state you should get a lower salary but be exempt from state taxes, for example.
 
You will still have some input costs and repairs to do if you lease some or all to the butterfly program.

Crunch the numbers and estimate the number of hours per year you would work farming it. Then work out what your labor will be paid per hour for farming it instead of renting it out or leasing it to the butterfly program. You might make more working part time for a neighbor. You might also have more flexibility to do what you want when you want, and have less financial risk for yourself and your wife. If you are still comfortable working on a money loosing project, you could always buy a boat, put in a swimming pool or fix up an old tractor, LOL.
 
What about the possibility of neighbor's spraying and spray drift killing some or all of your plants? I assume that you would have to replant.

Just thinking, I also have farm land and the cash rent does not come close to what you are talking about.
 
Bonnan, we think a lot alike. Your purpose also keeps you physically and mentally active. Probably like most former farmers it keeps you connected to the outdoors and the land too. Keep it up! Kelly
 
Just an aside note:
Myself, I would rather see a few "usless" government programs like the butterfly program than to see a ban on the chemicals that nearly eradicated milkweeds in the Midwest. It is a compromise that protects the monarchs without shutting down farming.
 
same thing here had farmed thousand acres cattle hogs sheep, tired fighting it backed out, rented ground out all other owned land is in govt program. its like you said not right but way it is. I have netted more since dong this than anytime doing it myself. now run small engine repair shop lawn mower sales out of what was farm shop. yes there is life after farming,it is a mental aspect only. do it and enjoy life
 
Although you enjoy working and nothing wrong with that so do i. But just think of the stuff you could be enjoying if you lease the land. Thats all Play and no Work. And at 65 and your wife soon to be 65. Go enjoy the life you and your wife have worked so hard for all these years. You can help folks when you want to believe me thats work. I vote for you and your bride to enjoy the rest of your life. And i bet she would agree if she read this post LOL
 
(quoted from post at 06:09:44 07/07/16)
(quoted from post at 04:22:09 07/07/16) I guess I don't understand how you don't farm the ground, but still get paid. Who pays you? Stan
Click to expand...

One guess, Stan... me, you and every other tax payer. And we wonder why non-farmers get upset with us.
Click to expand...



Do you have an issue with rent?
 
If the US had a flat tax on all income that would work. But Congress can't stop themselves from "social engineering"; they encourage what they think is good for you through tax deductions and credits, force the transfer wealth from people with higher incomes to people with lower incomes through progressive tax rates and laws like ACA, etc.

Bottom line is there's know way for the government to know how much of the money they hand out will come back to them in taxes.
 
who wants to seen as 2 notches below a welfare women --they provide a service while you cut jobs endanger the food supply hurt young people ===now show me the plus side oh the welfare women sometimes sweats which I doubt you will do at the welfare box
 
If it was about the money,I'd have sold my cattle and equipment years ago and rented the place out.
 
I would go for it, security and all that. But I would consider keeping a few acres out of the deal around the house and they you could play there if you are able and want to. Over and above that you could help out the neighbors as you said you might. It seems like a good deal as long as there is no string (s) attached like you have to mow or bush hog once a year as someone wondered. Make sure you know all the fine print before going ahead.
 
For me it would be an extremely easy decision, no way under the sun would I let the government have control of my land for 10 minutes, much less 10 years.
 
You could start a custom farm service working fields for certain neighbors - but contact your insurance agent about liability insurance for this type service.

Or you could give free help to the neighbors, but there is a risk to do that also - again, talk to your insurance agent for liability insurance for this type service. A neighbor, maybe your best buddy, will turn on you in a minute if something happens and you don't have insurance. Same goes for renting out equipment to anyone - there is contingent liability that may make the entire business too risky to make a profit and cost a lot of money out of your pocket.

You would be money ahead to take the FSA money and store the equipment that you have no intention of selling. Be very careful and controlled if you do use the equipment off of your farm.
 
You must log in or register to reply here.

Similar threads

W
Did I make the wrong decision?
Replies
16
Views
644
Geo-TH,In
Geo-TH,In
J
Annual Forage Crop planted ahead of CRP
Replies
2
Views
507
tomstractorsandtoys
tomstractorsandtoys
A
What is this and why cant I lift it high enough to move it?
Replies
8
Views
1K
Alaskannewfarmer
A
S
Need a year model for Massey Ferguson
Replies
8
Views
582
Sarai7
S
paulsamwel
Random childhood memory
Replies
10
Views
380
CLYDE MASON
C
Tractor Parts Tractor Manuals

We sell tractor parts! We have the parts you need to repair your tractor - the right parts. Our low prices and years of research make us your best choice when you need parts. Shop Online Today.

Copyright © 1997-2024 Yesterday's Tractor Co.

All Rights Reserved. Reproduction of any part of this website, including design and content, without written permission is strictly prohibited. Trade Marks and Trade Names contained and used in this Website are those of others, and are used in this Website in a descriptive sense to refer to the products of others. Use of this Web site constitutes acceptance of our User Agreement and Privacy Policy TRADEMARK DISCLAIMER: Tradenames and Trademarks referred to within Yesterday's Tractor Co. products and within the Yesterday's Tractor Co. websites are the property of their respective trademark holders. None of these trademark holders are affiliated with Yesterday's Tractor Co., our products, or our website nor are we sponsored by them. John Deere and its logos are the registered trademarks of the John Deere Corporation. Agco, Agco Allis, White, Massey Ferguson and their logos are the registered trademarks of AGCO Corporation. Case, Case-IH, Farmall, International Harvester, New Holland and their logos are registered trademarks of CNH Global N.V.

Yesterday's Tractors - Antique Tractor Headquarters
Website Accessibility Policy

Back
Top