(Continued from Part 3.)
The Future of Farming
The smallest of agricultural tools demonstrates the largest of problems in farming today. Small funnels are often thought of as almost disposable, but this one and its sticker saying the price survived all of these decades to become a component in this discussion. The funnel is from 1977 when my dad was young long before I was born. It was 59 cents. A comparable funnel today is around 5 dollars. Let us call it almost a ten to one ratio because you have in many states to add sales tax. Corn prices back in 1977 were about $2.30 a bushel. Corn prices 40 years later were $3.61. (I recently had a quote for corn at $4.30 a bushel.
The highest that corn sold for is a little under $8.50 a bushel back in 2012 due to some serious weather issues and decreased production forecasts.) Farmers were selling corn a little over 50 percent more 40 years later while purchasing equipment that could have been 1,000 percent more. Even with increased yields with improved varieties, this is simply not sustainable. Every piece of agricultural equipment that I can think of is higher in that time span. Back in 1977, a 125 hp tractor was about $20,000. Something comparable today can be over $100,000. Even larger tractors can easily cost a million dollars today. There is a lot of truth in the joke of how to make a million dollars farming: start with two million. There is still money to be made for the most efficient farms, but it requires people to have an understanding about business, weather, and history as much as it is about equipment.Continue reading“Thoughts on Farming – Part 4, by Single Farmer”