American Farm Incomes

Flatlander

Member
Arable Farmer
Location
Lorette Manitoba
Doubt it . Input costs have risen more than they claim.
Input cost here are horrendously high but forward crop prices are looking poor by comparison, I’m lucky enough to have had a reasonable years fir yields but only by luck. Most of western Canada has been hit very hard with drought as has major areas of the US mid west. The prices for commodities will make it a record grossing year for me but once I re buy inputs for this coming year nothing much will have changed as far as net profit. Hearing talk of rents going up,land values rising still and optimism for the future is positive in some respects. Those younger guys that returned home to farm mom and dads payed for farm after going to college or working outside the industry for a few years have had a few good years in which to start and haven’t seen tough times. With the new kit they’ve signed into buying and covering those costs along with higher price rented land will be in for some serious head scratching. my chemical rep is saying fertilizer sales are tough with quiet a few going to drastically reduce application rates or even miss out P and K. This year It’s been intresting watching crop prices bounce around in the matter of days but it shows the volatility of the world markets when even a hint of a new COVID variant can cause major stock market crashes overnight the three days later it’s back to its original point. A market traders dream.
 

bankrupt

Member
Location
EX17/20
once I re buy inputs for this coming year nothing much will have changed as far as net profit.
Always a problem when inflation kicks in, and it destroyed many good farm businesses in the 70s.

It's a double whammy - accountants tend to tell you you've made a good income (based on historic costs) and advise buying more machinery as a tax shelter.

In fact, treating inflationary gain as disposable income is no more than capital destruction by another name, as is excess machinery inventory.

:oldman:
 

Flatlander

Member
Arable Farmer
Location
Lorette Manitoba
Always a problem when inflation kicks in, and it destroyed many good farm businesses in the 70s.

It's a double whammy - accountants tend to tell you you've made a good income (based on historic costs) and advise buying more machinery as a tax shelter.

In fact, treating inflationary gain as disposable income is no more than capital destruction by another name, as is excess machinery inventory.

:oldman:
If I remember right any fertilizer, chemicals or other inputs were treated as in stock supplies and added to gains in that year. Here it’s more as a cash basis. here any money spent on inputs or leases of equipments grain bins or even some building is a direct expense in that year. A lot easier to reduce income in a good year. I typically buy all my coming years inputs before the beginning of the tax year to manage income tax. I like to pay some as it keeps for having an investigation.
 

farmerm

Member
Location
Shropshire
Input cost here are horrendously high but forward crop prices are looking poor by comparison, I’m lucky enough to have had a reasonable years fir yields but only by luck. Most of western Canada has been hit very hard with drought as has major areas of the US mid west. The prices for commodities will make it a record grossing year for me but once I re buy inputs for this coming year nothing much will have changed as far as net profit. Hearing talk of rents going up,land values rising still and optimism for the future is positive in some respects. Those younger guys that returned home to farm mom and dads payed for farm after going to college or working outside the industry for a few years have had a few good years in which to start and haven’t seen tough times. With the new kit they’ve signed into buying and covering those costs along with higher price rented land will be in for some serious head scratching. my chemical rep is saying fertilizer sales are tough with quiet a few going to drastically reduce application rates or even miss out P and K. This year It’s been intresting watching crop prices bounce around in the matter of days but it shows the volatility of the world markets when even a hint of a new COVID variant can cause major stock market crashes overnight the three days later it’s back to its original point. A market traders dream.

I keep saying it, farming is like betting in a Casino each year the minimum stake increases, the cost of loosing keeps increasing but the size of the prize for a win remains about the same
 

Flatlander

Member
Arable Farmer
Location
Lorette Manitoba
@Roger Perry wI’ll be along at any minute, to acknowledge the turn up in the fortunes of American farmers, since Trump got dumped and Biden was elected to sort out the mess.
I thought Biden would have done more for the working farmer than he has. Even during the campaigning there was no agricultural policy that I heard about. He seems to fixated on saving the world and priming his Vice President for the next term in government. Agricultural across the world seems of little importance.but when markets rally and farmers have a good year they are quick enough to revel in the success of an industry they did nothing for.
 

Hilly

Member
I thought Biden would have done more for the working farmer than he has. Even during the campaigning there was no agricultural policy that I heard about. He seems to fixated on saving the world and priming his Vice President for the next term in government. Agricultural across the world seems of little importance.but when markets rally and farmers have a good year they are quick enough to revel in the success of an industry they did nothing for.
The bloke won’t do anything good he’s just an old pedophile nothing more , anyone pinning hopes and aspirations on that old barsteward is deluded .
 

Sharpy

Member
Livestock Farmer
The bloke won’t do anything good he’s just an old pedophile nothing more , anyone pinning hopes and aspirations on that old barsteward is deluded .
Not sure about your comment on his sexual predilection but you are spot on with rest of your observations. Makes Trump look statesmanlike!
 

Hilly

Member
Do you know who built the most wall between Mexico and America ?
Trump stirred more unrest in America and the rest of the world than any other president in history. Obama did a lot for the working class American. Canada was dragged along on the coat tails and agriculture did well.
Trump stirred more unrest in America and the rest of the world than any other president in history. Obama did a lot for the working class American. Canada was dragged along on the coat tails and agriculture did well.
 

oil barron

Member
Location
Aberdeenshire
Trump stirred more unrest in America and the rest of the world than any other president in history. Obama did a lot for the working class American. Canada was dragged along on the coat tails and agriculture did well.
He deffinately didn’t help partizanship within the country. But I don’t think you can say he stirred up more unrest in the rest of the world given he never started any wars and created a monumental Arab-Israel peace treaty that was barely even reported on.
 

Flatlander

Member
Arable Farmer
Location
Lorette Manitoba
He deffinately didn’t help partizanship within the country. But I don’t think you can say he stirred up more unrest in the rest of the world given he never started any wars and created a monumental Arab-Israel peace treaty that was barely even reported on.
May be the word unrest was a poor choice in retrospect,but I feel he wasn’t very diplomatic in his approach to trade with other countries, can’t say Biden has done much better either, I’ve bought a fair amount of equipment out of the states and the US farmer always appear to be doing pretty good compared to Canadian farmers. Inputs are certainly cheaper.
 

oil barron

Member
Location
Aberdeenshire
May be the word unrest was a poor choice in retrospect,but I feel he wasn’t very diplomatic in his approach to trade with other countries, can’t say Biden has done much better either, I’ve bought a fair amount of equipment out of the states and the US farmer always appear to be doing pretty good compared to Canadian farmers. Inputs are certainly cheaper.
Oh yeah, farmers in America are looked after for sure. Once you get some history for crop insurance you can’t lose.
 

New Fuel Supplier On The Way

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