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Honored Advisor

Re: Was your farm in the black in 2017?

I think what helped the income illusion post 2008 was owned land that a farmer didn`t have to pay rent on.  But now that "free rent advantage" is even taking a hit, perhaps a year more rent will be higher than most can farm it profitably with, probably we`re a year away from bankers putting a kibosh on the high rents.  I agree that schedule F is a poor barometer of farm income, if schedule F shows you lost money ...and you didn`t cheat, you probably lost  money.  If schedule F shows positive income, maybe you were profitable and maybe you weren`t  Smiley Happy

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Veteran Advisor

Re: Was your farm in the black in 2017?

The  real  costs  of  transporting  goods  to  market ,  was exempted for 1 or 2 years , with   hopping  on  the  band  wagon, now it's reality check time of  repairing and maintaining this asset --- Talking to a repair shop that is flooded with equipment in need of  '' delayed '' maintenance , with not so friendly responses of the repair bill ? ? 

I can haul it cheaper - for a short time - hmmm      

Honored Advisor

Re: Was your farm in the black in 2017?

Great statement at the end BA.   Alternative goals for tax code really create a mess.  Incent based tax law...... just the tip of the iceberg.    Example  trying to force in every way possible the farmer to change those 50 cent lightbulbs to $4 light bulbs.......requiring a financial loss for a non financial goal.    that senario replays all through farming and the rest of the economy.  We were so lucky to have some grainprice help to endure it.  That may be over.

 

My struggles with usda and its political bosses.....  The drought took the focus off congress.  I think this expense inflation would have happened no matter what the price of grain.  I have made the mistake of equating inflation with grain markets.......looking back I doubt that is true...  Use GM as an example...... going under because they could not sell production at profitable levels...Congress steps in to run them through flash bankruptcy.  Sale Cost per vehicle goes up 10K to cover those congressionally forced costs of production.  The big customer(congress) guarantees sales.  One segment of the US private economy gone.

The public was saying with their buying habits............ "we cannot afford the cost of these mandated changes"  so congress took it over and said loose money we will help.

Farming has similar government/political intervention examples up and down the expense journal of farming........ even health insurance...... it is a cost of labor the farm has to pay for.

 

So imagine what the last 10 years would have been in agriculture without some weather intervention if expenses were not related to grain prices.   

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Honored Advisor

Re: Was your farm in the black in 2017?

It appears to me that some are in denial that a few farmers out there are deep in the black yet to this day.

 

Growers not so much. 

 

Maybe time to think outside the box? 

Younger farmer here needed another better tractor, took high bid on an internet auction on a 8295R JD.

 

Right at $70,000 when delivery figured in, had new reman trans with three year warranty, found out it was owned by JD finance .

Bet there is a former owner/grower with a deficiency.

 

 

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Honored Advisor

Re: Was your farm in the black in 2017?

There is a fair amount of concern over the amount of equipment owned by Deere ,......... especially from the rental "fleet" and when it comes on the market. 

 

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Honored Advisor

Re: Was your farm in the black in 2017?

The internet auction I watch is a good asset for appraisal and keeping up.... 

Lot better than standing out in the cold.  Smiley Happy

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Advisor

Re: Was your farm in the black in 2017?

Lately, a quick look at Fastline and other machinery publications, dealers like American Implement are really pushing lease options on available machinery.  One thought is most of these were lease returns and now they are trying to get them out any way they can.

 

 

Veteran Advisor

Re: Was your farm in the black in 2017?

SW  - A little  hint  on  GM , steadfast ideas of forever buyer membership ,  while the Toyota's show up in the Manufacturer Parking Lot --- 

 

The insider upper cast had already left town, while still having the flag wavers pretending there Wasn't a problem - PILLAGE  of the Castle. Fiddling in Rome, let them eat cake ,  what ever example you want--- I've witnessed the  ''' Top Brass ''' sliding out the back door & just happened to SELL their holdings before the roof comes tumbling in --- This might be more rule than exception when the dust settles - JUST MAYBE ? ?

 

The  exception  of  examples  happens  in  a  tsunami  years  like  1980 Fed Move, 2008  Wall Street ,  and a few examples like Bernie & a BroKe-rage Firm ---      

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Veteran Advisor

Re: Was your farm in the black in 2017?

Saw an add for the lease of used J D STS  combine  for $61 / hour  - 450 hrs /year  - 60 month lease  - Add  stated  machine had over 1000 hrs. on it --- Is this a do-able transaction ? ?   

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Advisor

Re: Was your farm in the black in 2017?

Not if you only use 300 or 375 hours. Same thing with exceeding the limit.
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