USDA estimated median farm income for U.S. farm households was negative $1,548 in 2018.

[jltrent]

Farm Belt bankruptcies are soaring...........................

A wave of bankruptcies is sweeping the U.S. Farm Belt as trade disputes, low commodity prices that have been grinding down American farmers for years.

The rise in farm bankruptcies represents a reckoning for rural America, which has suffered a multiyear slump in prices for corn, soybeans and other farm commodities touched off by a world-wide glut, made worse by growing competition from agriculture powerhouses such as Russia and Brazil.


https://www.msn.com/en-us/money/markets/farm-belt-bankruptcies-are-soaring/ar-BBTfj7M?li=BBnbfcN

 

[True Grit Farms]

Not a very good way to operate a business, when your depending on loans to pay the bills. A banker would be crazy to loan money to someone who can't pay their bills. WTH are some folks thinking.

 

[Coosh71]

We started small and slow. Years later we have a small /medium sized cattle business that is and ALWAYS has been debt free. Not trying to step on any toes or say my way is the only, but I've never cared what my tractor looked like, feed truck or at times early on my sale barn cows. But thru the years we have purchased a 30 ton overhead bulk feeder, better tractor, truck etc. We now have actual genetics in our herd and some great replacement heifers. We also have buyers for our calves where we steer clear of the sale barn for the most part. I guess my point is, it's ok to grow slow and be patient. It's fun actually, it's rewarding and there's none of the financial stresses. Yes early on we sold some older bred cows for $$. Cause we needed the cash for our operation. I know most operations in this study were very large operations, but I think some of the same principals apply. Our extension agent once had a 500+ head Reg. Angus herd down south. And he's our extension agent because he borrowed thinking he was too big to fail. Lots of wisdom listening to his story.

 

[sim.-ang.king]

I actually did well in 2018 on the grain side, the cattle side suffered a little more trying to recover from 2017 drought, and then the extra long winter.
Just don't spend more than you make, and give the Lord his due.
Hopefully 2019 will be even better!

 

[hurleyjd]

You cannot take many cruises, buy $50,000plus pickups or $75,000plus tractors and equipment with an income like that or is that the reason for the negative income from the farm.

 

[Bigfoot]

I've got a cow at my house so old, she's ate $7 corn.

 

[Nesikep]

I've got a cow at my house so old, she's ate $7 corn.

I wouldn't have fed a cow $7 corn!


One thing to keep in mind is that in some industries the changes in regulations force you to go into debt.. Chicken, dairy, etc.. Suddenly barns that were built to spec require upgrades, etc or you lose your markets, you aren't paid enough to put anything away, so you have to borrow or lose your markets.

 

[Allenw]

I've got a cow at my house so old, she's ate $7 corn.

$7.00 corn and $10.00 wheat has as much to do with farmers being in trouble now as the currant market, maybe more.

 

[TexasBred]

I've got a cow at my house so old, she's ate $7 corn.

$7.00 corn and $10.00 wheat has as much to do with farmers being in trouble now as the currant market, maybe more.

One crop??

 

[snoopdog]

I've got a cow at my house so old, she's ate $7 corn.

$7.00 corn and $10.00 wheat has as much to do with farmers being in trouble now as the currant market, maybe more.

And 2.80 5wts, I had a handshake agreement on corn for a few years when this happened, The market had fluctuated in his favor for quite awhile, and I never said a thing. Then this happened , and gunplay was almost involved.