How does a young farmer get going?

[hobbyfrmr]

I had the same dilema when I started farming. The previous posts are accurate. I would suggest to start in the work force. If you see how "real" business operates, farming may lose its luster in a year or two. Making alignments with neibhbors is a good idea. Buy one good piece of machinery that they need the extra capacity. I would recommend a combine over a sprayer because of the health issues related. Farmers always need and extra combine, most have their own sprayer. A journeyman combine will find a spot especially after this years weather. Farmers will try do harvest faster next year, although this mess was all weather related. I would strongly suggest trasition to organic farming. You can keep the basic set of equipment you already have, and yet easily triple the net income on your farm. I am haresting my third organic crop. I have plugged most financial holes I created while conventional farming. Dont worry about the neighbors objection, its your farm, your money. Many (not all of them) organic farmers are quietly doing well and are satisfied with results. You still have to apply yourself and get out there to do the work in a timely manner.You have to observe nature a little more, and think a little more. An old time farmer can help with advice. Back to machinery, a combine does not care if its chewing conventional or organic crop and can be cleaned out. If you stay with cows, alfalfa is obviously good feed,get a new field established, break the old one for organic. You will always have young,better yeilding smoother alfalfa fields for haying, and any surplus grain can be sold into the organic market for a premium over conventional grains. You may already be doing this anyway!! If the farm is small acres, plant barley and/or oats for higher yeilds plus they compete well vs. weeds. Bigger is not necessarily better, its just bigger. NET PROFIT counts. When I changed to organic,it was a straight business decision. Like changing jobs. I could use the same tools and work for $9.00/hour, or $27.00/hour. Plus, its still farming, what you want to do.

[skhadenuf]

I know some are busy combining I am just waiting for this batch of canola to cool in dryer and the snow to hopefully go, but when you have time basically the question is how much money and finance do you need to get going. You may be a part time farmer or diversified or straight grain. If we are talking straight grain and just want a living off the farm, what would be the cost to get to that point. I think this is a great topic. List how many acres to crop if land bought if rented what cost of combine and all equipment repairs taxes etc. the whole nine yards. And then to run that size of farm if you applied the risk, amount of skills you would use what would your net return be at a job ie 50,000, 75,000 100,000 a year see how this compares. It would be interesting to compare different areas of the province and diffenent provinces. I wish I had better computer skills to provide a chart where we could list all those number side by side and compare. Have to empty and reload dryer soon but here is a start.

2000 acres to rent $30 = 60,000, to purchase 12.5 quarters 55,000 to mostly 70,000 average est 65,000 x 12.5= 812,500. 20% down is 162,500 leaves 650,000 to finance over 10 years You would need down payment and 1 payment out of first crop. Assume 5% interest =32,500 interest payment, plus 65,000 principal, payment = 97500 downpayment 162500 =260,000 for the land

So to rent 30 bucks an acre to buy is about 130 bucks an acre just for land, the next 9 years land payment is about 48 bucks an acre. just using rough numbers not counting the legal fees etc. for all this to occur would be a chunk of change also.
Equipment
Combine new 300,000, used that would likely do 160,000 to 200,000. Although this year would have needed 2 combines mind you crop wasn't ready could have had 5 combines wouldn't mattered, but assume good years. $180,000
Tractor new not sure what they are 250,000? used 180,000
Air drill new ? used 80,000
Sprayer new 200,000 used 70,000
Supporting equipment, trucks, augers dryers bins etc, ?
I know this is boring most of you but there are people non farmers still out there that think you can just decide one day you're going to be a farmer, and have no idea when a farmer gets a government payment that equals a buck or 2 an acre just how far that goes. Got to get to the dryer, I'll finish later. Not likely but if someone wants to estimate supporting equipment please do, would like to get to a number in the end what it costs to buy a farm.

[hobbyfrmr]

Harvest, skhadenough is doing some good math. I hope college allowed you to do the same. He is speaking the truth. Thats why I am suggesting using the farmland that you already own, transition to organic, make better money with what you have. In the future, you can always go to conventional. If you want to chase 2000 acres and compete with the neighbors chequebooks go ahead. There is a group of very successful organic farmers in my area, and because I am the youngest in the bunch, I tease them. Its kind of a half truth, but all their money is tied up in...umm...cash. The other sentiment/joke around here is, that, if you are not driving your sprayer, you're a girl. Ultimately this is just for fun, I was a conventional farmer for 15 years before I realized my farm is just too small and "inefficient" to be conventional. I am not against conventional farming by any means, I am just not doing it that way. So, the organic thing is just a suggestion, its a free country,do whatever you want!!