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I do know the best time of the year to sell a big ticket item like a car or one of my restored tractors is after the first of the year when tax rebates are being received. That tells me many of these folks have no savings whatsoever and the only time they have a significant amount of cash in their pocket is at tax rebate time. They live hand to mouth and paycheck to paycheck. As a younger person, I was just not willing to pay that sort of price for the solitude of rural living. A retirement annuity now provides me with more options.
Obviously you don't know much about farmers. That's OK, most folks don't.
Farmers are small businesses that only get paid once or twice a year when their crop is sold. They have to make that money last all year, including paying for seed, fertilizer, fuel, and sometimes wages, to run their farm.
Most farmers do have savings, but their savings are often subject to good or bad harvests. If a farmer has $100k in savings, and it takes $100k to run his farm every year, then a bad year of sales at $50k is going to eat heavily into his savings the next year. But if he has an excellent harvest and makes $150k, then he can bump up his savings, or maybe buy a new car or tractor this year.
The reason that taxes play so heavily into the situation is because of farm subsidies, which change year to year.
Farmers aren't poor, they don't live "paycheck to paycheck," they generally own a lot of assets (a combine often runs over $100,000, and many farmers own 50-100+ acres). But they are practical people who have businesses to run, and their business is their livelihood and their life. Since assets only come once a year and can drastically change from one year to the next, they are cautious about taking on more than they can afford.
I'll bet most of the farmers who buy cars or tractors from you pay cash up front, and don't take on debt to buy the vehicle.
John F. Kennedy:
"The farmer is the only man in our economy who buys everything at retail, sells everything at wholesale, and pays the freight both ways."
Many small town folks live on retirement payments and some own several rental houses. The rest just work at regular jobs but usally for less pay than their big city counterparts.
Zmano------you must only be acquainted with "cash crop" farmers.
Many farmers in my area are dairy farmers and they get milk checks twice a month.
The "cash crop" farmers in our area sell their grain SEVERAL times during the year in order to average out the highs and lows and to give them a steady cash flow.
---"and many farmers own 50-100+ acres"---------
If a farmer only owns 50-100 acres chances are both he and his wife have off farm jobs and he certainly isn't a big enough operator to own an expensive combine.
--"farmers" who farm 50-100 acres were described "to a T" by poster High-Plains-Retired-- in that ,yes, they have off farm jobs and they can get back most of their farming loss by getting back springtime Federal and State tax refund checks.
In this day of volume and high expenses-------few farmers grossing less than $100,000 per year should be even labeled "farmers" for govt records as they need one or 2 full time good jobs off the farm to continue to live on that farm.
In this day of volume and high expenses-------few farmers grossing less than $100,000 per year should be even labeled "farmers" for govt records as they need one or 2 full time good jobs off the farm to continue to live on that farm.
Hm, guess I'll pass your advice on to my uncle who owns about 100 acres, rents another couple hundred, and grosses around $100k/year.
He obviously needs to start looking for a new job, despite putting four kids through college, owning almost all of his own equipment, owning his house, and paying cash for new equipment when he needs it.
I used the word --"grossed" -- when referring to income.
And ,yes --------if your Uncle is only grossing $100,000 per year he would NOT be able to raise a family, put his kids through college and buy new machinery.
Not unless there is substantional off farm income.
I used the word --"grossed" -- when referring to income.
And ,yes --------if your Uncle is only grossing $100,000 per year he would NOT be able to raise a family, put his kids through college and buy new machinery.
Not unless there is substantional off farm income.
I wonder if that income is the farmer's salary ( I imagine that he pays himself) or the farm as a business entity itself Probably need to talk to the man instead of the boy
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