OT is it just me??

As many of you here know I Am a farmer, but pay for my ambitious effort buy repairing equipment/running the pump shop. A large percentage of the work I get is from farmers. Most small sized, Beef, dairy, cash crops. I get pumps from all over the place so it isnt a "local" thing. The grain prices are low, the dairy prices are in the toilet.I have been seeing my slow season turn into my dead season. I always have something to do, but not what I would call normal year. The forcasters are telling us this will not get any better soon. Am I alone, or are any you other guys out there seeing the trickel down effect from a poor Ag economy? Al
 
(reply to post at 18:45:21 01/30/18)

Been here before
When the non ag economy gets better
The ag economy usually slows down
I believe we are headed for a few lean years
On the farm
Dugger
 
Don't know. I just know this time of year is bad for me with property taxes,income tax,wind and fire insurance,insurance on both vehicles,seed corn,whatever else pops up. I had a flat tire on the front of the 1600 this morning,all my spares were used up,I really thought about going and getting a new pair,but after I looked at the balance in the checkbook and how soon the taxes are due,I went out and pulled a tire and wheel off a wagon and put that on it.
 
We are not at the bottom in my opinion. There will have to be some fellows that sell out and land rent fall then we will have hit bottom. Around me the guys are gearing up to produce another record corn crop. They can not pay $350-400 an acre rents with $9.50 soybeans.
 
Lost my mechanic job at the dairy boss called up Monday morning before work and said I can?t afford to pay ya thanks for you work bye
 
In December I bought more spring supplies (seed/fert/chem) than I ever have before, rather than buying any machinery. I don't really need another machine, but usually buy something. Don't dare for a while.
 
You know why God created market analysts don't you? Somebody had to make the weatherman look good...

Yes, things are pretty bleak for crops and dairy... beef and pork somewhat better. But ALL prices are off from where they were a few years ago, and so everybody is feeling it. I think you even see it here on this website- few people asking questions about starting farming lately.

Sooner or later, it will get better. It might get worse first, but it will get better.
 
I have been doing this business since 1989 so I've seen this before. 30 years ago there were many,many small farmers. Some were old money farms that seemed insulated from rough times. If you subtract the fellas who went broke, retired, or died I lost 90% of the local farmers I first started to do repairs for. This round of scary times just looks different in this neck of the woods. The Stamp Farms, Beorsen BTOs wiped out many little guys just south of me. Al
 
The economy around my area is great really but its not dependent on farming that's for sure mostly funded by tax money sent by all you folks to the greater DC area.That said very few people farming I have known have lived 100% off what they made exclusively farming most had some type of other on or off farm things they did to generate income like custom tractor work,cabinet making,machinery repair,lime/fertilizer spreading you name someone would be doing it much the way the Mennoite and Amish folks I know today do.Putting all one's eggs in one basket has never been a sound thing to do
in my opinion.
 
?????????Last I heard on the news, is that the price of groceries has gone down two years in a row.???????
Where are getting your info?
 
I have noticed the slow down also by observing what people are doing. I?ve asked others if they noticed it, no haven?t. This is people involved in Ag or working poor.
 
Several more auctions listed since my thread from nearly two weeks ago on the subject. Most are legit retirement auctions where guys really are gaining nothing except aches and pains by staying on. They had their fun a few years back with high commodity prices and have more bull stories now to swap at the coffee shop.
 
The majority of the auctions around here are just delayed retirement auctions too. I only know of one that was a younger fellow getting forced out of business and he should have been out years ago. He about bankrupted his Father-in-law trying to farm/dairy/custom work. Doing all three poorly.
 
Having a wife that works in the medical/assisted living/chemical dependency/rehab field, and is rewarded with health insurance makes my cash flow situation a bit better than it would be otherwise.

A SAD, but true commentary on life as it is today,
 
(quoted from post at 06:02:24 01/31/18) Don't know. I just know this time of year is bad for me with property taxes,income tax,wind and fire insurance,insurance on both vehicles,seed corn,whatever else pops up. I had a flat tire on the front of the 1600 this morning,all my spares were used up,I really thought about going and getting a new pair,but after I looked at the balance in the checkbook and how soon the taxes are due,I went out and pulled a tire and wheel off a wagon and put that on it.

So that's why my checking account is near rock bottom :( Thanks for the reminder :)... You get that good feeling you have the money to pay all the tax, insurance, build up inventory at the end of the year but forget were the money went went about this time of year...
 
Al the number of farmers and people playing with older farm equipment will continue to decline. It started over 150 years ago. The homesteaders where hard pressed to make a living off the 160 acres the majority of them claimed for living there and improving it. So the consolidation of land began shortly after that time period. What your seeing is just that moving forward.

The majority of the serious farmers have little need of your type of services. Yours is not the only business effected that way. Radiator shops, starter/alternator shops, machine shops, etc. have all been effected too. Then you add in the trend of people not repairing anything and just going to buy new, you have lower demand for many trades.

A very good friend of mine bought/sold used farm machinery with his brother-in-law for forty years. He quit about 20 years ago because he could see the majority of his customer base was gone. The small 30-50 cow dairies in Dubuque County where dying. So the demand for smaller equipment slowly tapered off.

Then also technology is making fewer new machines that you can provide services for. With the new high pressure fuel rail systems you rarely would rebuild an injector and there is not an injection pump on the tractor. Tons of computer stuff driven by emission requirement made the transition happen fast.

I am in the same boat. About any large tractor made in the last ten years is beyond my knowledge or skill to repair. I am becoming obsolete. LOL
 
No question things are slowing down, and getting tough. Talking with three of my buddies yesterday ,all three took a bath on their cash crops for 2017 , and are wondering what to plant this year. As we all milk cows , I told them my thinking is grow forage crops to feed live stock , and for get the so called cash crops.
 
I saw on some news feed the ex president of Mexico say that they had already been buying some corn from south of them and would probably buy more rather than from the US. He also said if NAFTA is ripped by US they would find someplace else to buy all their grain. That could be regrettable for farmers.
 
I've been watching a lot of auctions and don't see very many deals out there....someone has some money yet! Machinery Pete posts record prices every week...
 
Our county up here in ND, sales tax collections were down I think 24% for the fiscal year 2017. Farming is our bread and butter
 
Thinking about it there are two types of farmers doing real well in my area.Direct sales of farm products includes vegetables,cheese and various meats.Joel Salatin and a couple others joined together to buy the USDA slaughterhouse in Harrisonburg VA,if you get something killed there and have it inspected the farmer can direct sell the meat.Then there are the meat goat
producers I got around $3 lb before Christmas for some I sold and I see in the VDACS report goats are now well over $3 lb.
 

Al, you should be looking around for some help to get caught up. With farm income what it is money is tight for many, so repairs are getting put off. Also many people have to delay purchases of new equipment and instead fix toehold stuff up. Very soon the day will come when it has to get fixed for spring work, and you will get slammed.
 
Face it grain farmers are a group of farmers that are always determined to keep producing more and more until they drive the price down then after they drive the price down they
think the answer is to produce more that somehow the increased production will make them money.Crazy really.
 
same old catch 22 here. Guys want to get out because of low prices, but won't get squat if they sell their cows out now because none of the rest of us has any money so they are stuck with hanging on until they can get enough so they can they sell out and cover their bills. Don't know how the rest of the country is, but milk supplies are low enough in this area that there is no excuse for the low prices. Somebody around the country must be making a lot of milk yet, but it sure isn't in this area.
 
Al probably not much to do with your post but what I see is older equip going out and so does the repairs. That new 35 hp compact does not create work for guys like you. (or me)
 

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