55 Years And Counting From The Tractor Seat By bill whitman At the end of the day, I was having a harder time finding a smile. There isn’t anything I’d rather do but when we skimp and skimp and still can’t see enough of a profit to treat my bride to lunch… it’s a little disheartening. Like everyone else we’re looking at the viability of our farm. Yesterday, I was visiting with a good friend of mine, Joe. He was telling me that his son had a recent visit from a neighboring farmer who said that this was their last year. He and his family have farmed for decades. In my last article I mentioned that it takes two to three years to feel the full effects of a losing year, let alone two. This family has been losing and they’ve figured out that all the equity was going to be gone after this year. If the younger members were to have any money to start over, this has to be their last year. This is just one of several stories I’ve heard recently. I have a feeling that this theme will play itself out many times this year. At the risk of showing my age and the mentality I grew up with, I have a suggestion that I believe will put together enough profit to make it through. Look at your expenses and you’ll see that equipment is a significant cost. The fellows I know who are struggling have bitten into the newer and bigger at a cost too high to sustain at $4 corn and $10 beans. I suggest that you contact your lenders to see if they will entertain trading down to equipment your farm can sustain. They won’t like it but as opposed to losing all your business they should work with you. Does it mean you’ll have zto spend more time in the tractor seat, sure does. Does it mean you’re going to think out of the box with altering practices, such as no-till, tillage, cultivating rather than herbicide application, and going to the landlord to try and renegotiate cash rent agreements. Yes, no stone will remain unturned. Several years ago, I compared the costs of using new equipment versus using older equipment. As many of you know, I favor using older equipment. I grew up in a time when we used equipment 10 or more years old with the exception of combines and balers. Winters were spent going over our equipment with a fine-tooth comb, replacing any part even remotely suspect. One of the advantages of going over our equipment annually is that we got to know the equipment intimately. We knew where to look when there was a failure in mid-season. Since even kids 12 years old were part of the work done in the offseason, we had a good feeling for the way the equipment worked despite our age. It’s my feeling that we need to bring our kids into the field at younger ages to help offset some labor costs. When the family has to pull together, the stress of the struggle is spread out on more shoulders. The long-term benefits are well documented as we get kids interested in agriculture and we teach a work ethic which will take them further than their peers. Before you think I am anti-technology, I’m not. I simply want technology to more than pay for itself or you’re spending dollars that may provide a greater return on investment. I am a big fan of GPS though I struggle with auto steer costs. I’m a fan of precision planting, within reason. I am a major fan of auto herbicide applications via cameras though I have a sense that the price will be descending significantly in the next two-three years. I like some of the modifications to combines the improve efficiency though I have questions as to how much it really returns. In some cases, I think that we can accomplish the same results simply by getting to know our machines better. We saw corn stands from 50-year-old John Deere 7000 planters that have received minimum updates be just as productive as new $600,000 planters. I saw some grain samples from 40-year-old combines that were just as clean as in a brand-new X-9. And it goes without saying that running tractors pre-def are far cheaper to run and have far more power. If there’s one thing I hope everyone takes away from this article is that unlike every other industry in the country, we always find a way to survive. No matter how dismal your situation may appear, there is a way to make it through. I watched a TV show this evening where the focus was on farmers who were fearing the demise of their generation’s old farm. Some were critical of the current administration suggesting that nine months is enough to uproot 100 years of survival. As suggested earlier, it takes two-three years for losses to catch up. Because of the time involved, there is always time to find the path leading out of crisis. There is never an excuse to end your life. The TV show tonight said that farmers are three times more likely to commit suicide than every other industry. I promise each reader that there is a way out. It may be hard, it may be humbling and may require searching out advice from unlikely sources. If nothing else, let me direct you to resources that will help. Horse Sense: People that have been kicked by a horse have usually been kicked before. IndianaAg@bluemarble.net |
