I love this topic, having farmed as my only means of employment for the past 40 years, I am pretty sure very few have ever gotten rich from the proceeds of products grown on their farms. Now I do know farmers that are very rich, and have only farmed their entire working lives. Nearly everyone of these guys sold a farm on the edge of a near by city for many times more than the value of ordinary farm land, and it has been developed into more city since. There are at least 3 growing cities with 100 miles of me, and many of these suddenly rich farmers have moved into our county. Simply put , the value of farm crops and livestock can no longer pay even the cost of buying farm land let alone make the farmers rich while they are farming. As a kid I always heard said, the only time a farmer has any money during his life, is when he sells his farm. More true today than ever before. Sure fellas used to make a good living on small farms and raised big families, but.... the price of farm produce and the volume a farm could grow was very different too. I remember corn yields at 2 ton per acre, and the price being $200.00 per ton in 1970. Back in 1970 10 ton of corn could buy a new pickup truck. Gas was .40 cents a gallon and farms cost $500 per acre. The average household spent 30% of the take home pay on groceries, and a house in town could be purchased for $30,000.00 on a 25 year mortgage. Now 10% of take home pay for the average household buys the groceries, and very few homes can be bought in any town near me for $300,000.00 , times are very different. Most farmers are up to their eyebrows in debt, as are most consumers. Cheap credit keeps people buying, and as long as there is demand for things like homes and farm land, the prices will continue to rise. Banks make money available by creating loans and credit cards, and so long as the suckers continue to make payments, banks will create more credit. It isn’t printing money, it is just creating credit. The more credit people have, the more they are willing to pay. And so long as everyone keeps paying, the ball keeps bouncing along. Those of us that are older feel good our property is now worth much more than we paid for it. Are we rich because of this, not really, if you sell your house or farm, you still have to buy something to live in. And inflation devalues your savings faster than interest can grow them, and interest is taxable as well. The economy of the western world has been changed dramatically in the last 40 years, and people on average are not as well off as they were. Remember when dad could go out to work and mom could stay home and raise the kids? Not anymore, it takes two incomes to earn enough for a household now. And of course the banking industry is doing just fine. Ever notice how much advertising the banks are doing, offering credit cards, loans, mortgages, consolidation loans. Even reverse mortgages to older folks. 40 years ago it wasn’t very easy to borrow money, now they throw it at you. Gold standard ended in 1971, anyone remember that, and money was always tight. In the decade that followed what happened? Inflation, then high interest rates of 20%. Then lower interest rates and more available credit and naturally more inflation. Farmers have been running on the same treadmill as everyone else, trying to grow a few tons more, or milk a few extra cows, or whatever to make enough to get through. I don’t have any answers, but I do have a good idea what has happen. There has been a steady transfer of wealth ,from the many to the few. And I see less younger people being able to afford to buy homes or farms, and spending their lives paying interest on borrowed money while living in rented homes. The real money is made lending money, or speculative land purchase/sales ,not growing crops.
Got a long way from growing hay with some old equipment on rented or free to use land, but this is why many farmers are doing what they’re doing. Running like heck just to keep from going backwards.
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