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For me it is because I found no way to own a real farm. I would love to have one, but couldn't figure out how to get one. Sad part of that is that I have a bun
by speeder 4y ago
For me it is because I found no way to own a real farm. I would love to have one, but couldn't figure out how to get one.
Sad part of that is that I have a bunch of relatives that do own farms, but have no interest in farming, the only reason they have those farms is so they can wait the land price to raise before they sell it eventually.
- JoeAltmaier 4y agoYeah farming is a several million dollar investment in land and equipment, for the dubious privilege of being lower-middle-class
- bequanna 4y agoLower middle class? Come to Minnesota, Iowa, Nebraska, etc and visit a farm. Their reported annual income may be small because of amortization/depreciation, but net worth is very typically several million. If you’re a poor farmer, you’re not doing it right.
- AngryData 4y agoTheir net worth doesn't really reflect their income though. Most farms are running on sub 1% profit margins. You dump 5 million dollars on your fields and you would consider $50,000 profit a successful year.
- JoeAltmaier 4y agoYes exactly my point. Net worth is because of the enormous up-front investment. Cash flow does not justify that investment. And yes, I'm from Iowa.
- bequanna 4y agoWhy wouldn't you finance the purchase of the land? You can get by with putting 0-10% down. Additionally, you're completely ignoring appreciation and paying down the loan. Farmland has went from ~2k /acre to 12k in about 20 years.