Mental Health of Farmers

[hurleyjd]

https://www.yahoo.com/finance/news/american-farmers-confront-mental-health-100000550.html

People that lose their jobs also have a hard time of coping when there is no where to turn. I guess you would have to say that life is a beech. Also notice that all commodities are low but feed prices have been up all year.

 

[Stocker Steve]

Lots of change and stress everywhere - - but farmers tend to be more isolated and alone.
Reality is we can not expect an extended period of, nor a rapid return to, the boom times of 2013 to 2014.
So the talking heads make reference to an "ag reset". This is management speak for reducing jobs and reducing overhead.
How are you aproaching this reset?

 

[Bigfoot]

My folks went under in the 80's. It was hard on them. Living through that shaped me. Maybe like previous generations were shaped by the depression.

 

[shaz]

Staying busy is the best therapy I can think of.

 

[1wlimo]

Staying busy is the best therapy I can think of.

Me too, but talking to people has to be good too.

I love the time I spend with the cattle, but when the weather is as bad as some have had then that losses the appeal, some times a rant to a mate is a good thing.

 

[sim.-ang.king]

I'd be depressed too if I thought 2013 was going to be the new norm, and invested as such.

 

[Jogeephus]

How are you aproaching this reset?

I think a good reset for many farmers I know would be to spend some time brushing up on finance and opportunity costs. Missed opportunity costs is the killer in my view and causes a lot of stress and problems. Many farmers have the mindset that paying taxes is a bad thing and when they make money they buy depreciating assets to keep from paying taxes and worry only if they can make the payments rather than saving and investing their profits in off farm investments. King Solomon taught a valuable lesson about this and this, I think, would be a very helpful reset for many farmers.

 

[Aaron]

How are you aproaching this reset?

I think a good reset for many farmers I know would be to spend some time brushing up on finance and opportunity costs. Missed opportunity costs is the killer in my view and causes a lot of stress and problems. Many farmers have the mindset that paying taxes is a bad thing and when they make money they buy depreciating assets to keep from paying taxes and worry only if they can make the payments rather than saving and investing their profits in off farm investments. King Solomon taught a valuable lesson about this and this, I think, would be a very helpful reset for many farmers.

Your missing an important piece to this. Paying taxes is bad and going into major debt is bad. It was the 2nd point that ruined a lot of lives in the 80's, and will ruin a bunch more in the next go around. Never seen someone lose a farm using the tax code to legitimately avoid paying taxes - my family has been doing it for almost 50 years. But big debt loads sink people everyday.

If you're avoiding paying taxes by buying assets, you shouldn't be making payments on those purchases. It should be simple cash transaction. If your making payments, it means you are going over and above your gross revenue and living beyond the means of your operation, which is a bad road to be on.

 

[jltrent]

As a farmer crawl before you walk and have other income sources is the only way I can see farmers make it. I sat at the cow markets and seen plenty of neighbors buy $3000 cows in 2013 and 2014 and I just shuck my head and remembered what my dad told me. I needed some cows them, but waited. I have replaced a lot cows since then and have less than $600 average in them and they look as nice as the $3000 did. I will have to be a tight a dicks hat band to make it pencil out with $600 cows.

Some of those people that bought the $3000 cows may need some mental health counseling. You can still make it farming, but have to realize there is not much in it and you dang sure better not have much debt load and expect to come out.

 

[Stocker Steve]

An issue is that some folks think all debt is the same. There is good debt and bad debt. Don't ask me how I know. An (over) simplified approach is to ask can the investment return per year cover double the cost of the payments? Then you really reduce the chance of uncontrolled supply or fund money driven volatility taking out your operation.

What high value items are you looking forward to buying in 2019 that should return double it's cost/payment per year?
Cross fencing is on my short list.

 

[Aaron]

An issue is that some folks think all debt is the same. There is good debt and bad debt. Don't ask me how I know. An (over) simplified approach is to ask can the investment return per year cover double the cost of the payments? Then you really reduce the chance of uncontrolled supply or fund money driven volatility taking out your operation.

What high value items are you looking forward to buying in 2019 that should return double it's cost/payment per year?
Cross fencing is on my short list.

Absolutely good debt and bad debt - in stable times. Anything happens to upset balance - markets crash, interest rate rises, health declines - and then ALL debt becomes bad debt. For those who can handle risk, balance upset won't even be an issue for them. I don't like risk - I like sure bets 100% of the time - very much a creature of routine and rigid structure.

 

[greybeard]

Chinchillas and Emu are the way out and the ag wave of the future.....

 

[Son of Butch]

Overall suicide rates have been pretty stable for many years with little fluctuation.
In 1950 the suicide rate was 13.2 per 100,000
2016 the rate of suicide hit a 30 year high of 13.5

Men are twice as successful when attempting suicide than women.
As a rule farmers seem to know how to get it done when compared to the average male.
So fewer attempts per successful suicide.

 

[Aaron]

Chinchillas and Emu are the way out and the ag wave of the future.....

I think you are 25 years too late. Pretty sure they bust before they boomed.

 

[Aaron]

Overall suicide rates have been pretty stable for many years with little fluctuation.
In 1950 the suicide rate was 13.2 per 100,000
2016 the rate of suicide hit a 30 year high of 13.5

Men are twice as successful when attempting suicide than women.

Dammn patriarchy. :hide:

 

[jltrent]

Chinchillas and Emu are the way out and the ag wave of the future.....

A neighbor had a bunch of Chinchillas, probably in the early 80s in cages. He ended up destroying most of them as I think he had only three their fur was just right and could be usable.

 

[Stocker Steve]

What are some examples of 100% sure bets ?

 

[jltrent]

What are some examples of 100% sure bets ?

Don't know about good debts or bad debts, but death and taxes are 100% sure bets if you want some examples....

 

[Stocker Steve]

Chinchillas and Emu are the way out and the ag wave of the future.....

You need to focus more on pork futures.

 

[pricefarm]

We all have to be crazy to work as hard and put in as many hours as we do for so little in return.