Buxton ND | ricefarmer14 - 10/23/2016 10:07
Sat and sed, this is where I differ from you guys on the STO versus BTO...SAT you mentioned 250000 as a family living draw as a killer. If a man farms 10,000 acres (management cost of 25 per acre) and another farms 500 acres (500 per acre management cost) how does one not see where one can absorb the high management cost and the other is dreaming when it takes nearly the entire gross of the STO to pay 250,000 as family living.
Granted the equipment debt of 1000 per acre is a deal killer but you guys that don't look at he math on the family living draws on these bigger farms aren't watching how many costs the bigger acres can absorb...
Family living draw has nothing to do with management costs to me.
Bigger farms more so the ones that have grown a lot in the last few years at least around here have been doing on high flyer cash rents. He's gonna lost more money faster on more acres then the little guy. When your losing money, your losing money. Would love to be a mouse the corner at the bankers office and listen in to Farmer Joe & Jane (Jane's not bringing in any off-farm-income) ((when the Jane's are not working, they tend to spend more money)) explain they need 250k of family living expense when they've lost money the last 2 years and looking like they gonna lost money this year. Bankers probably gonna want some big numbers in that little box that says "off-farm-income"
Last fall listened to a banker at a local meeting, he did not hold anything back, he let er ripe with some point blank financial facts on farmers in general. One of which was the 200-250k living living draw. He even went into divorce rates will rise, that's one I've never heard before. |
A difference between now and the Eighties
