Can Somebody Explain this to me?.

Posted by O on September 09, 2006 at 10:48:21 from (4.157.5.246):

How can the corperate farmers thrive so while the smaller farmers are going out?. I heard it's alittle cheaper to run a corperate farm that buys everything in bulk, but still, a corperate farm doesn't keep the older machinery that the smaller farms do. When I talk about smaller farms, I am talking about single farms under 300 acres and most of them around here have been owned by the same family by a couple of generations, and are all paid off, their tractors are 30yrs old, and they are crying they have to dip into their savings to keep going with the current milk prices. On the other side of the fence, there are about a half dozen corperate farmers that want to buy every piece of farm land in sight in this area, they got the latest and greatest high dollar equipment and seem to trade up every 2-3yrs, I am not sure if they are actually buying it or just leasing, but either way the payments have got to be a killer, but they must be making the payments somehow since they continue to stay in buisness. See, thats what I just don't understand, how can the man who has old equipment ain't making money, and these other guys who have a million dollars worth of new equipment in their yard appear to be doing much better, I would think that it should be the other way around?. The smaller farms are using old buildings that were built way back in the day, the corperate farms bought acreage, and built state of the art brand new facilitys to house a couple thousand cows. See,I don't understand how these corperate guys can spend spend spend and come out ahead, I realise they recive alot more money because they are milking more cows, but if you can't make it work on a small scale, seems like going bigger would just be mulitplying the problems and it appears to me like their expenses are much higher due to the fact they are taking out huge loans to buy more land and then need mega high dollar equipment to be able to cover all that acreage. I figgure there has to be something I don't know?, because I don't understand how these corperate farmers can afford to operate with all these payments on $11 milk.

Replies:

• Re: Can Somebody Explain this to me?. thejdman01 18:08:12 09/10/06 (0)
• Re: Can Somebody Explain this to me?. Sid 19:39:51 09/09/06 (0)
• Re: Can Somebody Explain this to me?. Mike M 16:00:52 09/09/06 (0)
• Re: Can Somebody Explain this to me?. barnrat 11:36:24 09/09/06 (0)
• Re: My opinion... long. Dave from MN 11:29:31 09/09/06 (2)
  • Re: My opinion... long. Questions 21:17:26 09/09/06 (1)
    • Re: My opinion... long. massey333 14:33:12 09/10/06 (0)
• Re: Can Somebody Explain this to me?. Nebraska Cowman 11:13:33 09/09/06 (1)
  • Re: Can Somebody Explain this to me?. O 11:44:30 09/09/06 (0)

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