Young people getting in the business

[smcgrath76]

I might step in as a young farmer here (still under 30).
Not sure we could do it if not building on an already established operation. Land is too expensive to purchase locally (even if it was interest free) so leasing land or moving is the only way to make things work. More intensive grass management, less money spent on feeding cows, owning calves longer to cash flow better, and keeping debt loads down.
As well, we know the money is in managing assets. We are working on different ways to manage assets without having to own them. We are leasing out packages of females, working on a plan to incorporate grass cattle/custom grazing, etc.
And in my spare time I work in a consulting practice, as I know that it will take some time for our business to become family and self sustaining.

[DieselRam]

I am also a young farmer just getting into the business. I am finishing my Ag.Degree at the U of A in Animal Science. The lifestyle is extremely rewarding, and you can make a profit. It all has to do with being innovative and trying new things, while keeping your costs in check. That is how the industry is going to survive! Remember, the world will always need to eat!

[WoolyBear]

Sincerly I hope that all you young farmers
can fulfill all the dreams and ambitions that currently have. Sure you can make a profit if.......... you don't listen to all the cynical and negative people you meet. Life IS tough out there and the hardest lessons learned will be when you have to dig yourself out of a hole of debt that wasn't entirely you fault!

Best of Luck

[cowman]

Now without a doubt debt can be a problem or it can be a very useful tool? I would suggest debt that will pay for itself plus give you a profit can be very useful? Unfortunately, many people can't manage debt and without a doubt it can become a real problem...through no fault of your own?
A clear example would be if you bought $1500 heifers pre-BSE on credit? Or the rising costs of floating loans in the early eighties?
A lot of people went down on both those.
I would suggest long term debt can be risky, but short term debt is useful. A clear example of short term debt would be a credit card? If you pay it off every month it is definitely a credit opportunity.
I don't have any debt related to agriculture but I have no problem borrowing against my oil field business. However I do believe whatever I'm buying there must pay for itself within a year...two at the very outside! So if I buy a $50,000 truck I expect it to generate a $50,000 profit in one year. You can do that in that business.
I consider debt to buy toys the silliest thing possible, but then I guess the person buying wants it and hey it is their dime!

[PureCountry]

Interesting to see opinions from all 'generations'. The 'wise and experienced', the 'young dreamers' and the ones slaving in the middle of it trying to make money off those dreams. I guess I'm in the latter, and proud of it, too. I will see a day when I make a living without off-farm 'subsidies', then I'll make my millions writing a book called, "Ranching for Dummies".

Let me know in advance if any of you would like autographed copies.LOL

[WoolyBear]

You go PC....... I'll even pay for my copy !

When I think of the number of dreams and plans that my wife and I have "Planned" in the last 15 years, and the almost as many that have had to be "Put off" until another time. Maybe next year....... but in the meantime, pass the checkbook, theres another bill.

[PureCountry]

I know the feeling - we've been wanting to find a small used tractor - even though I'm the opponent of steel and iron. 50-60hp, loader, nothing fancy, just to move some bales now and then, plow-out drifts, maybe run a mower. Even without a cab, on the market you're looking at $10,000 for anything in decent shape. It's crazy. Oh well, another year I guess.