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| This is going to sound mean, and perhaps whiny, but I think it needs to be said. It's simply looking logically at facts. I would say one primary reason, is when a multi-generational farm gets to a point of owning 300+ acres of 200bu.+ corn/acre crop ground, and it's all paid for, getting rented at what has to be a reduced rent rate in certain cases, considering I know for a fact a neighbor in his 30's got a new combine bought for them (nothing against them, good family), if they can't expand, they are the dumbest box of rocks on the planet. Or are terrible at money management. In land rent alone, going from $250/acre to $125/acre on 300 acres is 37,500 saved. I know that doesn't happen in every instance, but I bet it's enough to make a difference in who can gobble up who. Even to purchase ground at the ludicrous price of 16k/acre like it is here, if you could never afford to buy more land, you bought too many king ranch pickups, night vision scopes, trips to Jamaica, snowmobiles, etc. Which is fine, I'd do neither if ground stays at 16k/acre. And if you have a solid business that can pay for all of that on average over the decades, you're doing great! :) So you either have all of the positives here, and are an excellent businessperson, and gobble up everyone else. Or you can be one of these people, and piss it all away. There was a neighbor who recently died. Awesome guy, very nice. But terrible at money management and would buy way more machinery than he needed. Died in his 40's, I think he was over 1 million in debt, and he even inherited the farm. And this guy wasn't entitled/silver spoon type at all, he worked his ass off when he was younger. I really think some of the other farm kids that have always had a silver spoon in their mouth, need to have a period of going into ketosis, starving yourself, or baking your own flatbread to save money when times are hard, like I have. Go run a garbage route, then go load a trailer load of hogs by yourself. They have no idea what some young farmers have to do to keep farming. But, some farmers who have 2 jobs do know what I'm talking about. One saddening aspect, and this may be due to upbringing and viewing things a certain way, many of the younger farmers have no idea how lean they could actually run their operation, and make an absolutely astounding net profit/year. You just watch them buy a new formost cattle chute for a few thousand when they could've bought a usable chute for $200, shake your head, and keep on going. :D | |
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So what caused this?
