|
NW Indiana | One aspect of an operation that makes guys feel they aren't making any money is the forced contribution to maintaining a line of equipment. Lets say a 400k line of equipment 15 years ago costs 1 million today so that has forced the operator to save 40k a year. This 40k a year is a much higher than normal percentage of income for retirement than most jobs. But what gets better is with how farming has become the operator doesn't look at this as retirement savings because "we have to help the next generation get started". I can't imagine a job that you are forced to save 7 figures but don't view that as retirement because you won't spend it. The business model is broken and that is why the government keeps dumping money at it to try to offset so much of the foolishness meanwhile unintentionally blowing the balloon up that much more that its a race to the top and only a few will make it. As much complaining as there is on here about lack of profitability and a very cash income poor why would the next generation even be interested? Only because what they are going to be given and that seems like a very poor business model imo. | |
|
Beating the dead horse. Farm wealth......money vs physical assets.
