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| Along the lines of the point you make about the heirs often being the major recipients of subsidized crop insurance. It has made the barriers to entry for young farmers (without substantial family backing) virtually impossible - at least in row crop Iowa. Rents stay high, land ownership is a no go for these folks - all because the risk reward is skewed by crop insurance.
Commonly what I see is they can start with a little cow herd. It is tough to get into row crop after that. The ones who have some family backing often build equity in a hog confinement first. Once in awhile an older farmer will let one rent acres at a discount to market and use / rent older equipment at a price that works. In the family instance, often its rented acres and the dad lets equipment be used for free.
Getting that first piece of row crop ground bought for the last 15 years in Iowa has always taken help from family. In 100% of the deals I have been involved with. Often collateral pledge, but at minimum a rock solid guarantee. | |
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