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Perspective: With 500 acres you
lose $50,000
By Joe Hickson, Midnight Acres To say that we have too many farmers is also saying that our farmers are not big enough, too inefficient. Do the math. Remember there is only one chance per year, to plant, grow, harvest and condition your food supply. You cannot close the factory and move it to Mexico. The factory is fixed and on your back door step. A farmer cropping 500 acres is losing $100 an acre (total loss: $50,000). With an off-farm job of $50,000 he can live off the wife’s income. A grower with 1,000 acres, losing $80 per acre, has a part-time winter job earning $30,000 and hopefully has an understanding wife to cover the shortfall. A grower, with 2,000 acres, loses $70 per acre and needs an extra wife or a good inheritance. Point being, when you have distorted global market prices based on global subsidies, bigger is not better. Yes, you are more efficient but not efficient enough to pay the bills. |
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