Posted 4/11/2019 20:27 (#7434128) Subject: The real income problem
Farm sector profitability measures are expected to increase in 2019. Total rate of return on farm assets is expected to be 2.78 percent in 2019, up from 2.43 percent in 2018. Total return on farm equity is expected to be 2.4 percent in 2019, up from 1.99 percent in 2018. Total rates of return are the sum of rates of return on current income plus returns on real capital gains.
So to me the real reason we as farmers just never seem to make any money is we just don't get much of a return from all the dollar's we invest. A measly 2.78% just doesn't cut it. We need to be at least a 5-10% in my opinion. I would be happy with a 2.78% return if I paid myself a big wage before I figured my return. But I'm betting this figure doesn't include a high paying salary to the farmer first. Are we doomed to be low income earners our whole lifes? Should we just invest in the stock market and get a 8%+ return? What say you