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Little River, TX | Economics of scale varies by location and enterprise. Just as in any business there are plateaus where the best income is realized.
Here, there is a fair but limited income with <250 acres, as long as you sell into a retail market. The next plataue is one man farming 750 to 1000 acres selling into national markets. To get much larger requires outside the family help. The next optimal profit level is >5000 acres. There are zones between these plateaus where farming is for the exercise, or the romance of farming.
Each of these plateaus have an upper limit for income. Each will vary by crop, land cost, labor value, and life style options.
A dairy can be a good example. A feed lot dairy with 100 to 250 cows better have a good job in town to pay the bills. A 100 to 250 cow grazing dairy can be very profitable. More profitable than a 1000 cow feed lot operation. Optimal income levels for Feed lot Dairies probably need to be 3,000 cows range or 10,000 cows range. Depending on the desired life style desired. Just an outsiders observation.
A hay farmer working alone, with no outside the family help will be comfortable but no frills. My market is strictly local.
I see hay growers with 500 acres of hay, doing some custom work and running a few cows with a higher income, but a lot more on the line also, plus a payroll. His market is regional rather than local.
I read with interest about the truly large hay producers in the west. Their hay will travel. They have a real payroll, with an a net that is more than my gross. True there is also the potential for them to realize a poor year where their losses exceed my entire asset value. A really bad spell and their losses, from my prospective, can be proportional to the national debt. | |
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- rent, economies of size, and government payments - tkastens : 8/18/2007 01:11
- RE: rent, economies of size, and government payments - coup : 8/18/2007 08:07
- Economics of size. - Hay Wilson in TX : 8/18/2007 08:39
- RE: rent, economies of size, and government payments - Pat H : 8/18/2007 08:57
- Re: rent, economies of size, and government payments - Pofarmer : 8/18/2007 09:57
- RE: rent, economies of size, and government payments - Cliff SEIA : 8/18/2007 12:55
- Re: rent, economies of size, and government payments - Steve in SD : 8/18/2007 15:20
- Re: rent, economies of size, and government payments - paul the original : 8/18/2007 16:02
- How dare you tell the king he is naked..... - John Burns : 8/18/2007 18:12
- Re: rent, economies of size, and government payments - Steve in SD : 8/18/2007 21:05
- Re: rent, economies of size, and government payments - Steve in SD : 8/19/2007 09:45
- RE: Sorry Terry I meant you not Ted, don't know where I got Ted - Steve in SD : 8/19/2007 10:06
- Re: rent, economies of size, and government payments - tkastens : 8/20/2007 08:18
- Re: Thank you administrators - plowboy : 8/28/2007 21:46
- Ditto,,,,,,,,,,,,,,,,,, - eddiedry : 8/28/2007 22:07
- Re: rent, economies of size, and government payments - wheat farmer : 8/28/2007 22:24
- Re: rent, economies of size, and government payments - Steve in SD : 8/30/2007 19:11
- Rent vs own - Les NCKS : 8/19/2007 10:10
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rent, economies of size, and government payments
