Crossroad of flood and drought | 1. Big guys with some paid for ground both generational and also right place right time in 90's/00's that have grown a ton and get a lot of rented land if they want it as well. Most are doing fine. The all cash rent guys are in trouble but thats always the case. They clean out with every cycle.
2. Diversified group with off farm capital inflows. This group is wide ranging. From the farmer with a town job to the town job guy that gets the itch and starts farming. Investors turned farm junkies too. Also guys that farm and also have side businesses in all kinds of fields. They use off farm capital inflows to pay for living and land; farming income to buy paint. This group leverages tax shelter to is max
3. The small generational comfortable small diversification. This group is stable but hasn't grown much in years. Low risk low reward. Farm likely ends when they stop breathing.
1 and 2 will be the future.
3 is on the way out.
Farming is a business. Sure, there is lifestyle components but 1 and 2 embrace those differently than 3. 3 is the old school type, nothing wrong with it but the next generation won't be able to survive that, they will have to slide into 2 and work to a 1.
You can start farming from scratch, but it's not like it was 20-40 years ago.
Edited by FNS 11/18/2024 18:04
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Next generation farmers? How is it possible?
