Someone commented on farmers throwing in the towel the other day. Seems like dairy was mentioned. A lot of farm auctions appear in the farm papers in November. Is there a higher than normal retirement in farming happening or is this just some realizing their time has come to retire. Have seen articles estimating there are 2.3 million farmers in the US. If 2% retire each year, then that is several thousand going by the wayside from there own desire and turning the reins over to someone else younger. Are ag operations experiencing a normal retirement rate compared to other occupations or do farmers just keep going to advanced age like the energizer bunny?
- Thread starter sourgum
- Start date
Mutt and Jeff
Member
I sometimes work with a not for profit agency here. It is a disabilities advocacy group.
As I understand it many local farmers have given in, submitted to failure. Failed at trying to recoup any value of equipment. And for whatever reason have no values left in the property through extensive mortgages or prohibitive sale to development (open space?) structures.
As described for some, the thoughts of suicide brings a new opportunity to that being a mental health disability.
As I understand it many local farmers have given in, submitted to failure. Failed at trying to recoup any value of equipment. And for whatever reason have no values left in the property through extensive mortgages or prohibitive sale to development (open space?) structures.
As described for some, the thoughts of suicide brings a new opportunity to that being a mental health disability.
redforlife
Well-known Member
In my neck of the woods, value of land is high. Higher than it should be. Although it is on a downward trend. I think this has encouraged more to retire and liquidate, more than there would otherwise be.
Traditional Farmer
Well-known Member
- Location
- Virginia
Think the average age for US farmers is around 65 you have to figure there are a very large number of people farming now that won't be in the next 10 to 15 years or less.With land in my immediate area selling for $20,000 acre and up to $50,000 even more sometimes for development/housing guys like me are farming because we want to farm not because its the best financial
thing to do.If I do sell out I'll head South about 100 miles where I can buy a farm for a fraction of what I'll get for the one I'm on now.Maybe even buy a place at the end of a hollow over in WVA to weather the coming financial meltdown.
thing to do.If I do sell out I'll head South about 100 miles where I can buy a farm for a fraction of what I'll get for the one I'm on now.Maybe even buy a place at the end of a hollow over in WVA to weather the coming financial meltdown.
I guess I am in another world or different part of the country, farming is going strong here and WHEN there is a retirement the land is going to another farmer getting bigger. The bubble may not be as strong as it was three years ago but sure not anybody falling or filling bankruptcy around here. If the kids have not worked their way into farming then when the old man retires the land sells at a premium . Lots of old money in farming in this area, land and equipment paid for and they know how to hold operating cost down and make a profit.
Here in ND, I think there is a slight upswing in retirement sales over the past couple years. I attruibe it to a number of folks that kept farming 5 years ago when prices were good. Now that things aren?t as rosy, they sell off the equipment and rent the land out. Can?t say I would blame them, why retire at 65 when you are making easy money.
Land doesn?t get sold until death, the rent check is almost guaranteed income.
Land doesn?t get sold until death, the rent check is almost guaranteed income.
You may want to get some additional sources of information on farmer retirements. There can be hardship cases, but they are not the common scenario. Most retirement issues involve family issues.....tax planning......capital gains.....deciding whether to buy a home in Florida or Arizona......or both
Vicinalvictor
Well-known Member
I know as I get older, the more things around the farm that can be done with a machine or robot, I am all for it! I enjoy farming, but things do change as we get older....
Billy Shafer
Well-known Member
My father said I will retire the day I die. That is just how it went. Died walking out to his truck.
Dairy is hard work.
It is in a cycle of going downward.
If you were thinking of retiring dairy in the next 5 years, might as well now. You ain?t making anything.
Lot of kids are deciding not to take over dairy from dad. It won?t support both of them, hard to expand big enough to make it work with these economics.
So, kinda getting out while the getting is good, not already over the cliff?
Paul
It is in a cycle of going downward.
If you were thinking of retiring dairy in the next 5 years, might as well now. You ain?t making anything.
Lot of kids are deciding not to take over dairy from dad. It won?t support both of them, hard to expand big enough to make it work with these economics.
So, kinda getting out while the getting is good, not already over the cliff?
Paul
Totally agree. Been seeing that here for the last 20 years. The farm kids? Most want a better life. Now to them if you ask what's better? It is predictable work hours, pretty stable pay and time off for a lot of them. These kids ain't stupid. They have watch parents worry about prices sense they were small and at times work very long hours. They want better than that. And by that it's better than that in their perception.
Rick
morepower02
Member
I fit in your demographic and agree 100 percent.
I can see where the farmers kids want to do something besides farm. Some of them want a steady paycheck and some of them don't want to be married to the cows. As everyone(at least those on this site) would know dairy is a 365 days a year job for someone. Sometimes it is the farmer and sometimes it is his help. It has been a long time since I worked for my neighbor on his dairy but, I know that at that time(about 40 years ago) that times were probably better than now.
While he had the usual costs involved like the cows, feed,equipment, vet bills, wages for helpers etc. He had all the responsibilities and risks that went with the dairy and he would make $x per pound of milk. I don't remember what he got per pound at that time but he had 2 brother-inlaws that owned the local grocery store. The milk truck would bring so many gallons of milk to the store and stock the shelves. If it was reaching it's expiration date they would take it back to the creamery. So the BILs had no real risk except if the cooler didn't work but they made more per gallon of milk than the dairy farmer did. It just doesn't seem quite right to me but he enjoyed his dairy and that is really what counted.
Steven
While he had the usual costs involved like the cows, feed,equipment, vet bills, wages for helpers etc. He had all the responsibilities and risks that went with the dairy and he would make $x per pound of milk. I don't remember what he got per pound at that time but he had 2 brother-inlaws that owned the local grocery store. The milk truck would bring so many gallons of milk to the store and stock the shelves. If it was reaching it's expiration date they would take it back to the creamery. So the BILs had no real risk except if the cooler didn't work but they made more per gallon of milk than the dairy farmer did. It just doesn't seem quite right to me but he enjoyed his dairy and that is really what counted.
Steven
Big difference between a farmer and a store owner. The store owner says "this is the price" while the farmer takes whatever someone is willing to pay him based on demand.
Just as businesses have gone under because they read the markets wrong and over produced the same thing happens to farmers. Raise too much corn, or make too much milk and prices drop. Just they way it's always been. Take a bad year, poor yields and prices go up. Again, just the way it's always been.
Where the problem lies is that too many farmers see the prices go up and they increase production thinking that they are the only one with that idea.......so all 3.5 million of em increase production and lady luck makes this a bumper crop year. And it's a never ending cycle. And no, you don't have to actively farm to watch the markets, crop reports and watch the disaster unfold. It happens again and again and again. I've been actively watching the markets sense 1971. Once the government price supports went away it's one nightmare leading into another one.
Rick
Farmers are retiring very wealthy as land values are high. They can rent their land and live good from the rent. No opportunity for younger folks unless you are born into a large farm and all the kids from those farming operations are coming home to farm. If that is not your situation, then you move to the city as there is no opportunity for you since you can't compete at these land prices.
Traditional Farmer
Well-known Member
- Location
- Virginia
If a store owner ordered 100 shovels and had to sell them at a loss,he wouldn't then the next year order 200 shovels and figure he was going to make money off them.But if he operated under Farm Economics then he'd want the Gov't
to come in and subsidize each shovel sale so he could go buy 300 shovels to sell the next year.
to come in and subsidize each shovel sale so he could go buy 300 shovels to sell the next year.
Not all farmers are sitting that good. Here land is worth 2,000 to 3,000 an acre. We have farmers who own anywhere from 40 to 160 or so acres who rent another 1000-1500 of tillable ground. They decide to retire they ain't got much to sell or rent out.
Kids today trying to break in? Better have a decent job with bennies. Enough of a job to get a home mortgage on a 5-10 acre homestead with a livable house on it. Plus enough cash in the bank to finance equipment and operating capital for a couple of years including cash rents for the acreage needed to be successful. Better plan on working that job until the farming operation become profitable. Most banks today are not going to advance much if any money on a venture like that. So you either work 18 hour days to make it work or you have someone in the family with money who's willing to give you money to stay out of their hair........Been that way for a good deal of time too.
Rick
The dairy industry has morphed into almost guaranteed failure for the little guy. Tons of dairies across the country were "forced" to take on loans to increase capacity in order to ensure a buyer. Walmart was a huge part of that. Then Walmart decided they would operate their own dairies, so all those dairies lost their contracts while in debt.
Pete in MD
Well-known Member
- Location
- Central Maryland
oldtanker,
Your comment - "Big difference between a farmer and a store owner. The store owner says "this is the price" while the farmer takes whatever someone is willing to pay him based on demand." reminds me of the old saying:
A farmer is someone who buys everything at retail, sells everything at wholesale, and pays the freight both ways.
Your comment - "Big difference between a farmer and a store owner. The store owner says "this is the price" while the farmer takes whatever someone is willing to pay him based on demand." reminds me of the old saying:
A farmer is someone who buys everything at retail, sells everything at wholesale, and pays the freight both ways.
jim buford
Member
But the store owner has to buy for what the wholesaler charges. Now, a banker can tell a depositer what interest rate they will get and can tell the borrower what interest rate they will pay. The only workable control is competition.
Except right now the guys who should be folding and going away are hanging on, many by a thread, but hanging one when really they can't compete with the BTO's. Unlike a mom and pop store that doesn't have the buying power to compete with Walmart the playing field for farming is in much better shape as in both big and small get the same amount. Big difference is the big guns buy in bulk and MAY (may as opposed to will) a bulk discount the small guy can get on supplies, seeds, feeds, fertilizers and chemicals. On the other side most BTO's have a labor pool to pay while many smaller farms are one person operations. Still a pretty level playing field.
As far as banks? They have the fed setting prime rates for lending. Depending on your credit you may be able to negotiate a better rate. The store will seldom do that on an item.
Rick
Similar threads
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