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    #11
    I believe the UofS did a study not to long ago the most profitable farm size is a 10000 acre farm.

    Just saying big is nice but it has a whole bunch of other problems.

    Find your size that works and F$&k the rest.

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      #12
      Originally posted by SASKFARMER View Post
      I believe the UofS did a study not to long ago the most profitable farm size is a 10000 acre farm.

      Just saying big is nice but it has a whole bunch of other problems.

      Find your size that works and F$&k the rest.
      I would tend to think that's true. The biggest issue with farming is manpower though. Seasonal help with experience and guys that care are hard to find.

      Comment


        #13
        Originally posted by SASKFARMER View Post
        I believe the UofS did a study not to long ago the most profitable farm size is a 10000 acre farm.

        Just saying big is nice but it has a whole bunch of other problems.

        Find your size that works and F$&k the rest.
        Well I would love to see that study. I think size has nothing to do with it. It's all how its managed. I would would bet any money that there are 2000 to 2500 acre farms that are just as efficient as 10000 acre ones. It's all how is operated. I see it around me all the time.

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          #14
          Lots looks good from the roads. Remember capacity for machinery is usually matched to the amount of acres each can accomplish. Also, some BIG farms are supporting 2 or 3 families, they get the efficiency of working together and helping each other out....synergy as long as there's harmony.

          There's different mentalities when it comes to the end goal. Own a few acres and rent a pile and bow out if a nice nest egg is established. Buy most of the land you farm and tie up capital that way.... then silver platter it to the next gen. Only ever rent and leave when you're ready. The drawback to renting a pile of the land you farm is you are at the mercy of landlords or losing it to other farmers or buyers, why do you think our forefathers came to a place where land ownership "was" possible to carve out their farm in a vast land of opportunity.

          To each their own, the right way is the way you want it for yourself, not looking over the fence and worrying about what everyone else is, or isn't, doing.

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            #15
            MNP accountants see all sizes, they opinion is 2000-4000 most profitable, after that need multiples of machinery and many more bodies. Might as well go way bigger. Watching the approx 20,000 acre neighbors is truly mind boggling. Millions in iron, shop, bins, and 30 bodies.

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              #16
              Originally posted by fjlip View Post
              MNP accountants see all sizes, they opinion is 2000-4000 most profitable, after that need multiples of machinery and many more bodies. Might as well go way bigger. Watching the approx 20,000 acre neighbors is truly mind boggling. Millions in iron, shop, bins, and 30 bodies.
              are farm is 3000 acres of crop land and 280 cow calf operation. find we are maxed out in all aspects from seeding equipment to harvest equipment to cattle facilities to labour. if we were to expand anymore I find that we would have to double in size to get to the same per acre and per cow costs. and would lose some efficientce in management. of being smaller like being able to do own repairs and keeping equipment longer in wich I find are huge cost savings. plus just find the stress is not worth it.

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                #17
                Originally posted by Generation 5 View Post
                are farm is 3000 acres of crop land and 280 cow calf operation. find we are maxed out in all aspects from seeding equipment to harvest equipment to cattle facilities to labour. if we were to expand anymore I find that we would have to double in size to get to the same per acre and per cow costs. and would lose some efficientce in management. of being smaller like being able to do own repairs and keeping equipment longer in wich I find are huge cost savings. plus just find the stress is not worth it.
                I got to quit reading this stuff! Sure makes me feel like I'm lazy or at least farm handicapped. I'm less than half that size and feel I'm maxed out most days as a one man show.

                Comment


                  #18
                  Originally posted by fjlip View Post
                  MNP accountants see all sizes, they opinion is 2000-4000 most profitable, after that need multiples of machinery and many more bodies. Might as well go way bigger. Watching the approx 20,000 acre neighbors is truly mind boggling. Millions in iron, shop, bins, and 30 bodies.

                  As some have suggested, size doesn't always matter, its all management. I would agree that a 2000-3000 acre farm will often be the most profitable consistently over a 5-10 year period verses a larger one but as another post mentioned, often a 10,000 acre farm may have 3 family units working together.

                  Last fall is a big reminder of how close a over leveraged farm can get to insolvency. After a great number of better years in general, I fail to understand why farms would want to get bigger when they are not financial strong in the present. I would not know those numbers but when you hear about large farms getting involved with input capital and shifting to all equipment under lease you really wonder where there cash is/went. Because we all know, when you go to a lease, any equity you had in equipment is generally removed. If it goes into the bank that would be good, if you have everything else mortgaged to the highest level FCC and banks will let you, in my opinion there is very little net equity left and unless you change, the end may be near.

                  Putting "food on the table" doesn't require 8-10,000 acres. My accountant always says a 2000 acre farm putting up a 100-125 acre financial profit often is much higher than the larger farms.

                  To each there own, I just hope they understand the numbers and what is actually going on behind the scenes if something isn't going right.

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                    #19
                    You guys saying 2-3000 ac is the most efficient size in Saskatchewan are delusional​.

                    I would agree with saskfarmer, 10,000 would be about right. 2 60ft drills 3 combines and one big sprayer. Can always bring in some custom to help out with spraying or harvest. No reason a 10,000 ac farm can't make as much or probably more per ac than a 2000 ac farm. Are there 10k ac farms that make nothing? Yes! And there are lots of smaller ones that make nothing too.

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                      #20
                      For many owning land free and clear is the end goal and making a good living along the way.

                      Comment

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