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Mid Michigan | One thing that makes me laugh when I read a subject like this is I don't see anything mentioned about the farmer paying his living expenses out of his 20% ROS before taxes! I know that on my job I earn about 70 % of my wage after taxes and it is unreal all the other expenses that a person has to pay. If the guy makes a profit of $60-$100 dollars an acre before taxes he better be farming a heck of a lot of acres to even make a living. To gross $40,000 dollars a year he would have to farm from 400-700 acres if he were averaging 60-100 profit per acre. That is a lot of acres for a little return. Now out of that you have to pay your house payment, your taxes, your vehicle payments (if you have them), car insurance, home insurance, health insurance (whopping amount of money for a family) possibly over $10,000 dollars cash, food, clothing, heat, lights, gas for cars, and all the wonderful expensive things that come in between january 1st and december 31st. So if somebody told me I could gross $60,000-$100,000 dollars to farm over 1000 acres for a year I think I would be a little gunshy of it. All it would take is one bad weather event and that number could go right to 0. Expenses could eat that much money up very quickly. Everybody also knows how as soon as you get it all figured out how Murphy always seems to come and visit you and bring a bad tractor engine or a smoked transmission in the pickup. That kind of rent only benefits the landlord. It is just too darn risky to pay it. The ones that do will be few and far between. The margins are too tight. Companies operate on tighter margins than 20% most of the time but they usually don't have to figure in a bad weather event in their cost structure. If people can make this work I commend them. | |
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cast rent auction-45 min north of us
