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Subject: Market Farming

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  • From: "Rick Williams" <mrfarm AT frontiernet.net>
  • To: <market-farming AT lists.ibiblio.org>
  • Subject: [Market-farming] Farm markets vs. getting out of farming
  • Date: Thu, 6 Feb 2003 22:45:37 -0600

Jay Gee wrote:
> If there are not enough bodies in your area to support a farm, you
> have two choices: 1.) Expand the size of your market area through
> advertising; or, 2.) Absorb the losses that farming produces (be they
> $ losses or time spent without reward). A third alternative is to stop
> farming.
>
> If you realize that there is no market, then either find new ones, or
> do something for which there is a market, or reduce the scale of
> your operation to that of a hobbyist, forget tax deductibility, and
> occupy your newly freed time with something else.

Jay Gee, if you were a farmer, you simply would not say the above. It is
hard to explain to those who do not do it, but because we want to do it and
enjoy doing it and can even afford to do it ... we will do it.

We are not losing money with the farm relative to not farming it. Then we
*would* be losing money because we would still have to figure the cost of
interest and taxes and some maintenance. The taxes on the land would double
or triple due to the new land use tax system implemented in the past few
years.

It is our expectation that we will show some profit eventually, but it is
longer than we would prefer. Part of that is due to not counting the
opportunity cost. And if that surprises you, it is considered SOP for many
comparisons of farms such as the Dairy Profitability Center's research on
grazing farms.

I would bet that many can connect with the experience of figuring out that
you are going to do "x" in net and something breaks:) There is another
$1,000 bill or even higher. A tractor overhaul will be at least $5000.
Fingers crossed:)

Sincerely,

Rick Williams





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