It’s not that crazy when you see the cost of farm equipment, you own a decent sized tractor and you’re a good way to $1,000,000 in assets already, add on a truck or two, general equipment around the farm, a few buildings and you could easily crest a million in assets. I would be surprised if there are that many private farmers with a million in liquid capital though, and realistically most farmers aren’t going to be rich.
Quite a few of the farmers I’ve met purchase outright and claim depreciation via their taxes and avoid the interest, but I would assume many finance as well.
They’re rich in assets. Land and equipment is valuable. There are lots of farms that don’t make a cent while others are insanely well off. The well off farms get government subsidies just like the poor farmers.
Almost all subsidies go to the big corporations that have bought up these independant farmers and often rented them the land back sharecropping them in effect. John Oliver did a thing on subsidies on one of his shows, I’ve read things elsewhere too, it’s all gamed by the big gateholding corporations that have been squeezing everyone else, especially the landowning farmers, to get their land.
The wealth comes from the fact that there’s a lot less farmers than there used to be. Every failed farm means more land for whoever snatches up that land.
The poor family farms will be gobbled up by rich farmers or corporations. Consolidation of farms is just like all the other consolidation in our economy.
Asset rich, cash poor. It has its advantages over being regular poor with no assets but except for the largest farmers, they aren’t living a life of luxury. At least at the size where they are still considered a family farm and not a corporate farm
It is in 30 years when the loan is paid off. Small farms commonly have been in the famaily for 100 years so the farmer is worth a million making $50k or some such.
Is that really what you think
It’s not that crazy when you see the cost of farm equipment, you own a decent sized tractor and you’re a good way to $1,000,000 in assets already, add on a truck or two, general equipment around the farm, a few buildings and you could easily crest a million in assets. I would be surprised if there are that many private farmers with a million in liquid capital though, and realistically most farmers aren’t going to be rich.
Where do you think they got the money to buy the assets? Loans have to be paid back
Quite a few of the farmers I’ve met purchase outright and claim depreciation via their taxes and avoid the interest, but I would assume many finance as well.
The majority inherit their land.
They’re rich in assets. Land and equipment is valuable. There are lots of farms that don’t make a cent while others are insanely well off. The well off farms get government subsidies just like the poor farmers.
Almost all subsidies go to the big corporations that have bought up these independant farmers and often rented them the land back sharecropping them in effect. John Oliver did a thing on subsidies on one of his shows, I’ve read things elsewhere too, it’s all gamed by the big gateholding corporations that have been squeezing everyone else, especially the landowning farmers, to get their land.
Where did the money for the farm equipment come from? Likely debt, often still being paid.
If wealthy farmers were common, we’d have a lot more farmers
Loans and debt are how nearly every business operates.
The wealth comes from the fact that there’s a lot less farmers than there used to be. Every failed farm means more land for whoever snatches up that land.
The poor family farms will be gobbled up by rich farmers or corporations. Consolidation of farms is just like all the other consolidation in our economy.
Asset rich, cash poor. It has its advantages over being regular poor with no assets but except for the largest farmers, they aren’t living a life of luxury. At least at the size where they are still considered a family farm and not a corporate farm
I guess that was really my point - farmers aren’t living a millionaire life, they’re just responsible for a million dollars in equipment.
At $10´000 per acre a small 100 acer farm is already that much and we haven’t even bought a tractor of a house.
If I get a mortgage on a million dollar house, my net worth is not a million dollars
It is in 30 years when the loan is paid off. Small farms commonly have been in the famaily for 100 years so the farmer is worth a million making $50k or some such.