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There have always been lots and lots of small farms; i.e., very inefficient and expensive operations.
Larger more mechanized and more efficient farming and ranching operations have been displacing those small farms.
That will continue. That same sort of thing is happening in retailing.
And if the people affected would just stop producing workers for jobs that no longer exist...
Does this just mean the farmers are taking the subsidies, and filing bankruptcy so they dont have to pay their debts and retire on the subsidy money?
That piece needs some context. There 2,000,000+ farms and ranches in The US. FE Texas has not quite 250,000 farms and ranches........given that, the increased number of chapter 12 filings seems wholly unremarkable.
You keep saying "this industry". Farming covers everything from growing shrimp to sugar cane to honey bees. That would be like calling manufacturing "this industry", when it includes everything from building cars to refrigerators.
Farming is suffering a bit of the 'Walmart destroying small town commerce syndrome'
Soon we will only have 'corporate options' for all raw food products.
Farming takes a masterful economic and budgeting skillset + ability to excel at cultivation and animal husbandry. That is a rare combination of talent. Schools have failed America, industry / manufacturing has left America, Municipalities / counties and states have taxed farmers off their land (highest use of land is to Grow Houses!) & there are MANY easier ways to make a living, but few easier ways to go broke. 50% of the farmers I knew and grew up with had a FT night shift gig to support their farming habit. Those jobs are GONE!
And... weather matters, especially when 'leveraged'.
Capital intensive businesses are not easy to keep alive. My 'retired' neighbors spend over $50k / yr on personal property taxes on previous business and farm assets they have not got around to selling (no one wants or knows how to operate 20 - 50 yr old capital assets).
Expect a LOT more farming bankruptcies.
BTW, you can track where the subsides are going (not to the family farm).
Quote:
Originally Posted by EDS_
That piece needs some context. There 2,000,000+ farms and ranches in The US. FE Texas has not quite 250,000 farms and ranches........given that, the increased number of chapter 12 filings seems wholly unremarkable.
I found this article interesting, is from last year
We don’t want food prices to skyrocket, which is what happens if large numbers of farmers have to close shop.
That is an incorrect conclusion. Farmers remain if they make money. Fewer farmers and lower paid farmers means less cost. Large farms are just way more efficient and lower cost. They tend to be way more mechanized for one thing.
Very happy that my family has been very successful with their farming. Basically started with my uncle, and then his kids all split off the land and they’ve all done very well. One even has started a beef ranch and is now providing local restaurants with their beef. They are all very hard working folks though, it’s not for those that are looking for a quick buck, that’s for sure.
That is an incorrect conclusion. Farmers remain if they make money. Fewer farmers and lower paid farmers means less cost. Large farms are just way more efficient and lower cost. They tend to be way more mechanized for one thing.
Fewer farmers means less competitors, which is a factor that can lower price. If there was only one major farm, they will gouge as much as they can.
I pretty sure small farms use machines too. I mean if you actually have enough land, and grow enough on it to be more than a subsistence farm, then I dont see how it be even physically possible to harvest all that with your bare hands.
There have always been lots and lots of small farms; i.e., very inefficient and expensive operations. Larger more mechanized and more efficient farming and ranching operations have been displacing those small farms. That will continue. That same sort of thing is happening in retailing. There is just going back to the small, expensive and poorly stocked little corner stores. Sure a few will do well, but the vast majority will be replaced by more efficient retailing. Farms are the same. There will always be some small operations that do well but most are doomed.
And the end game is all of us working in a giant amazon warehouse or next to illegals picking fruit that machines can’t do yet.
Fewer farmers means less competitors, which is a factor that can lower price. If there was only one major farm, they will gouge as much as they can.
I pretty sure small farms use machines too. I mean if you actually have enough land, and grow enough on it to be more than a subsistence farm, then I dont see how it be even physically possible to harvest all that with your bare hands.
Thete are different levels of mechanization and moving up that chain involves massive step changes unless the farmer is also an engineer and machinist.
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