Great video. Since the combine shows your bushels per acre, it would be interesting if you went to the USDA soil survey website and looked up your property to see what types of soil you have and compare your crop yields with what other farmers are reporting.
Look up yield mapping. Companies like John Deere have software that will track yields and allow you to overlay it over soil types / soil samples, fertilizer programs, pesticide applications, etc. There is some super cool tech in farming!
I used that to look at my soil, Im a homeowner but my property is zoned for AG as well as residential so i can do commercial farming on the back few acres if i wanted to. Turns out my soils both amazing for drainage but shit for yield lol. Ancient Sand Dunes
I feel fortunate to have done well in business and believe in a common-sense approach to it. I found this video exceptional. It brilliantly explains what it takes to run a business in an intuitive way, highlighting the risks and strategies business owners use to mitigate them. It also emphasizes the importance of analyzing and reflecting on results to identify areas for improvement. This is Business Fundamentals 101, and you nailed it. Additionally, it deeply honors the sacrifices of farmers in our country-truly outstanding! Keep up the hard work!
Super interesting, thank you for sharing! I give farmers so much credit, over $170 an acre in fertilizer, insecticide, herbicide and applications! What is sad is that spreadsheet doesn’t even include paying yourself!
Great breakdown. So easy to see how hard it can all be, have a good year, did a great job on new ground, still down 5k on just 30 acres. Put that over 2500 acres or half a bigger farm operation like some of the other UA-cam family’s everyone watches and it’s a quick -$ 400k loss. Ain’t easy to make money farming.
Greetings from Uruguay. I enjoy yours and Grant's videos very much. I'd love to see a video of your beginnings and how you managed to acquire and develop your farming enterprise. Thank you and good luck
it's insane that the price of everything has gone up over the past 3 years yet the price of crops has decreased. There's a large disconnect there somewhere and someone is making a fortune at the expense of farmers.
@@Heimerviewfarm to be honest tariffs might help the farmers with crop prices since they will have to buy foreign crops at 25% more when the land is currently overproducing. So you could sell your crops for either the same rates or better.
Thanks for the look at income and expenses. Some of these channels never address the financial side and lead people to believe farmers are making huge profits as evidenced by all the new machinery, bins and shops/equipment storage.
The ROI and margins on corn and beans are absolutely awful. I raise vegetables on a small farm in Iowa. This year showed a net profit after expenses of $6000 per acre with a margin of approx 80%. That means just one acre of vegetables will crush 30 acres of row crops or hay in terms of profit, risk, land used, and every metric of comparison. I farmed on 7 acres. No employees and just small equipment. Those seven acres made more than farms 100 times my size. An advantage I have is there is little to no competition because the 'real' farmers don't think out of the box and will just continue to spend dollars to make pennies because all they know is corn and beans.
For sure that sounds awesome! Just one metric I think row crops/hay or larger scale farming beats small scale in your example is TIME. The amount of labor hours per acre, (if the farmer is doing all the work that is important to keep in mind) if your opportunity cost is high then it might not pencil out to spend x amount of hours on vegetables even if you netted $6,000 an acre. If you are just getting started then small scale is for sure the way to go. Also assume 7 acres is $8,000-$12,000 an acre or $250-$350 an acre rent in a “open market”. So will need some funds to start that. Totally agree with you though, ROI is much better small scale. Also keep in mind margins are at 5-6 year lows right now, if I owned the land outright I would have ballpark netted $350-$550 if I took 2020-2022 average commodity prices. That’s about a 4-5% return on cash assuming $10-12k an acre. Totally agree again with your comment, just offering a different perspectives that others may have.
@@spencerhilbert Time per acre is a good point, or return per hour. I work a full time job in town and the vegetables are still a hobby. I try for $100 per hour average in my spare time. Let's say it's $10K per acre cost plus some machinery, it pays for itself every three years or less just doing this in my spare time with maybe less than $125K invested. Bought another 46 acres for $500K just to rent back out to the seller. The seven acres pays for the 46 acres in just a matter of years. If I went all into corn/beans it would be 40 years before it paid for itself. I think if I was near to DesMoines or a larger town I could quit my job and just live off 10 acres selling produce.
Nice yeah that sounds like great numbers! Do you have a Instagram or anything you document/share about your setup? Would be interested to learn more for sure.
As a Aussie living in a small country town an wanting to farm but life never took me there love watching you two an wishing I could do this keep up the great work
Yes cover crops are something I want to do for sure. Possibly do Ariel application this next fall into standing corn. Right now focusing on learning all the basics and getting those right. Not sure if planting cover crops would help in these first couple years in inputs, but for sure is beneficial in long run.
@@spencerhilbert check out Jon Stevens maple Grove farms. He's in northern Minnesota and has experimented with different system. Get ahold of your nrcs they may help with the application.
@spencerhilbert Cover crops you want to pick your goal. Are you trying to reduce inputs, fix erosion, improve soil.. On a soybean field for next year spread some winter Rye this winter yet. Next spring watch your ground moisture and your forecast. The second the ground moisture starts to be less muddy and the forecast is looking dry you terminate that cover crop of rye if in doubt terminated a little early because it will keep moving a little moisture You could do some in season cover crops in the soybeans. Check out Rye Carlson, he's an organic guy up in Mora Minnesota but I want to follow his buckwheat and mustard treatment in standing soybeans to reduce the amount of chemicals I'm not too far from organic corn. All I do is 3 oz of Callisto, and then once that corn is at V3 or V4 I go out with just 20 lb of oats and just a couple pounds of Buckwheat a few different radishes Italian rye grass and you shouldn't need any more chemical in that corn for the year Much larger conversation is needed reach out if you have questions I am not a salesperson
@@Heimerviewfarm I wish we had more seasoned I tried Clover and grasses late season into soybeans. You can't go too early because then you still got to try and combine the soybeans but we don't have enough season to go late and there wasn't enough growth. If I was south I would have probably done the same thing as soon as them beans start to yellow get some Clover and grass out there and maybe there'll be a little something for cows to nibble Or switch to a yellow pee instead of the soybean and then you would have a lot more fall to take advantage of growing something to feed cattle
What do the land rents bring in your area. I have a friend who owns about 200 acres in southern Minnesota, he was getting 600 bucks an acre a few years ago. This year he reduced the rate, Would you have made more just renting out the land? With no labor or other costs. All of that rent would go to interest, taxes and building equity.
$600 an acre rent on 200 acres is insanely good rate (for the land owner) on strictly commodity crop producing land. I would assume $250-$400 on free open market rates in my region. Yeah $600 is extremely good.
Yup, I thought this year was good overall. The “negative cash flow” was just due to making equity payments on the land. Super good year, can’t complain at all!
In all seriousness, start small, avoid commodity crops, think outside the box, integrate livestock, and don’t use farming as a way to support an equipment addiction
Only way I am “hobby” farming here is by have supplemental income/off farm income. That’s probably the fastest and safest way to get into it if you don’t live around it or have anyone to help you. Bunch of different ways to do it, but having a financial safety net before you start is always good.
It can be bad if you don't rotate. Different crops also grow better or worse depending on soil conditions. If you have a source of good fertilizer that won't break the bank you can plant the same crop every year but fertilizer tends to be expensive unless you have connections to a animal farm of some sort where you can get the manure for cheaper
I always figure the cost of land rent for land costs and consider the land purchase a separate entity in my mind. Even if the lands paid for I could rent it to someone else.🤓
How is his cash flow guaranteed to be better? Also if he didn't make any money this year he's not paying any income tax, so why would he buy something to go further in the red?
Great video. Since the combine shows your bushels per acre, it would be interesting if you went to the USDA soil survey website and looked up your property to see what types of soil you have and compare your crop yields with what other farmers are reporting.
Look up yield mapping. Companies like John Deere have software that will track yields and allow you to overlay it over soil types / soil samples, fertilizer programs, pesticide applications, etc. There is some super cool tech in farming!
I used that to look at my soil, Im a homeowner but my property is zoned for AG as well as residential so i can do commercial farming on the back few acres if i wanted to. Turns out my soils both amazing for drainage but shit for yield lol. Ancient Sand Dunes
I feel fortunate to have done well in business and believe in a common-sense approach to it. I found this video exceptional. It brilliantly explains what it takes to run a business in an intuitive way, highlighting the risks and strategies business owners use to mitigate them. It also emphasizes the importance of analyzing and reflecting on results to identify areas for improvement. This is Business Fundamentals 101, and you nailed it. Additionally, it deeply honors the sacrifices of farmers in our country-truly outstanding! Keep up the hard work!
Super interesting, thank you for sharing! I give farmers so much credit, over $170 an acre in fertilizer, insecticide, herbicide and applications! What is sad is that spreadsheet doesn’t even include paying yourself!
The yield maps are gold when it comes time to plan tiling projects, can't wait to see the improvements now Grant has the plow😊
You gotta get the solar power mod to offset that loss lol . Great video.
Funny how can you identify a farming simulator player. What’s up brother?!
finally a new upload ❤
I can't wait to see what next year brings a specially with grants new tractor...😊😊 p.s I hope you all have a great Merry Christmas
Great breakdown. So easy to see how hard it can all be, have a good year, did a great job on new ground, still down 5k on just 30 acres. Put that over 2500 acres or half a bigger farm operation like some of the other UA-cam family’s everyone watches and it’s a quick -$ 400k loss. Ain’t easy to make money farming.
Best yt video I have seen this month
Your farm sim graphics are insane
Awsome videos just wish there was more!! Day to day farm living is always cool to see
Great video and breakdown! Interesting to see that laid out so well. I'll watch this video 1000x more to help offset your negative cash flow. ;)
Good luck man 🍀
Greetings from Uruguay. I enjoy yours and Grant's videos very much. I'd love to see a video of your beginnings and how you managed to acquire and develop your farming enterprise. Thank you and good luck
it's insane that the price of everything has gone up over the past 3 years yet the price of crops has decreased. There's a large disconnect there somewhere and someone is making a fortune at the expense of farmers.
It's simple overproduction. To many people and not enough market.
@@Heimerviewfarm to be honest tariffs might help the farmers with crop prices since they will have to buy foreign crops at 25% more when the land is currently overproducing. So you could sell your crops for either the same rates or better.
@@kennedy796 selling is one thing but maybe it's not the worst thing in the world for farmers to figure out if producing less makes more.
Great video. Thank you.
Great video enjoy watching keep up the great work
This was super informative
W vid man
Thanks for the look at income and expenses. Some of these channels never address the financial side and lead people to believe farmers are making huge profits as evidenced by all the new machinery, bins and shops/equipment storage.
Awesome video 😊
Love the video
I always wanted to be a soybean pod when I grew up
The ROI and margins on corn and beans are absolutely awful. I raise vegetables on a small farm in Iowa. This year showed a net profit after expenses of $6000 per acre with a margin of approx 80%. That means just one acre of vegetables will crush 30 acres of row crops or hay in terms of profit, risk, land used, and every metric of comparison. I farmed on 7 acres. No employees and just small equipment. Those seven acres made more than farms 100 times my size. An advantage I have is there is little to no competition because the 'real' farmers don't think out of the box and will just continue to spend dollars to make pennies because all they know is corn and beans.
For sure that sounds awesome! Just one metric I think row crops/hay or larger scale farming beats small scale in your example is TIME. The amount of labor hours per acre, (if the farmer is doing all the work that is important to keep in mind) if your opportunity cost is high then it might not pencil out to spend x amount of hours on vegetables even if you netted $6,000 an acre. If you are just getting started then small scale is for sure the way to go. Also assume 7 acres is $8,000-$12,000 an acre or $250-$350 an acre rent in a “open market”. So will need some funds to start that. Totally agree with you though, ROI is much better small scale. Also keep in mind margins are at 5-6 year lows right now, if I owned the land outright I would have ballpark netted $350-$550 if I took 2020-2022 average commodity prices. That’s about a 4-5% return on cash assuming $10-12k an acre. Totally agree again with your comment, just offering a different perspectives that others may have.
@@spencerhilbert Time per acre is a good point, or return per hour. I work a full time job in town and the vegetables are still a hobby. I try for $100 per hour average in my spare time. Let's say it's $10K per acre cost plus some machinery, it pays for itself every three years or less just doing this in my spare time with maybe less than $125K invested. Bought another 46 acres for $500K just to rent back out to the seller. The seven acres pays for the 46 acres in just a matter of years. If I went all into corn/beans it would be 40 years before it paid for itself. I think if I was near to DesMoines or a larger town I could quit my job and just live off 10 acres selling produce.
It's set up for large operations,100k acres+
Brazilians are really cashing in
Nice yeah that sounds like great numbers! Do you have a Instagram or anything you document/share about your setup? Would be interested to learn more for sure.
Great video. Proves that to farm you have to want it. There is no money to be made right now.
Yeah currently right now margins are at 5 year lows. I thought I got pretty fortunate with this year’s yield and the sales I made.
You started planting on my birthday
Once you own the land it makes a huge difference, I just don't know how tenant farmers make it work.
Great❤
AMAZINGNES!!!
Hey big Spence!!
As a Aussie living in a small country town an wanting to farm but life never took me there love watching you two an wishing I could do this keep up the great work
In your free time get a job as a casual labour or farm hand it will bring you closer to farming
Wow, FS25 is so realistic! It almost feels like real life
Love it
Have you looked into if planting cover crops or anything would keep input costs down?
With land up front. Having a small beef herd wouldnt be the worse thing.
Yes cover crops are something I want to do for sure. Possibly do Ariel application this next fall into standing corn. Right now focusing on learning all the basics and getting those right. Not sure if planting cover crops would help in these first couple years in inputs, but for sure is beneficial in long run.
@@spencerhilbert check out Jon Stevens maple Grove farms. He's in northern Minnesota and has experimented with different system. Get ahold of your nrcs they may help with the application.
@spencerhilbert
Cover crops you want to pick your goal. Are you trying to reduce inputs, fix erosion, improve soil..
On a soybean field for next year spread some winter Rye this winter yet. Next spring watch your ground moisture and your forecast. The second the ground moisture starts to be less muddy and the forecast is looking dry you terminate that cover crop of rye if in doubt terminated a little early because it will keep moving a little moisture
You could do some in season cover crops in the soybeans. Check out Rye Carlson, he's an organic guy up in Mora Minnesota but I want to follow his buckwheat and mustard treatment in standing soybeans to reduce the amount of chemicals
I'm not too far from organic corn. All I do is 3 oz of Callisto, and then once that corn is at V3 or V4 I go out with just 20 lb of oats and just a couple pounds of Buckwheat a few different radishes Italian rye grass and you shouldn't need any more chemical in that corn for the year
Much larger conversation is needed reach out if you have questions I am not a salesperson
@@Heimerviewfarm
I wish we had more seasoned I tried Clover and grasses late season into soybeans. You can't go too early because then you still got to try and combine the soybeans but we don't have enough season to go late and there wasn't enough growth. If I was south I would have probably done the same thing as soon as them beans start to yellow get some Clover and grass out there and maybe there'll be a little something for cows to nibble
Or switch to a yellow pee instead of the soybean and then you would have a lot more fall to take advantage of growing something to feed cattle
Do you get any subsidies for farming?
do you have any pipes underground to water the field?
제초제는 어떤 성분 사용하시나요?
What do the land rents bring in your area. I have a friend who owns about 200 acres in southern Minnesota, he was getting 600 bucks an acre a few years ago. This year he reduced the rate, Would you have made more just renting out the land? With no labor or other costs. All of that rent would go to interest, taxes and building equity.
$600 an acre rent on 200 acres is insanely good rate (for the land owner) on strictly commodity crop producing land. I would assume $250-$400 on free open market rates in my region. Yeah $600 is extremely good.
What's the total acres y'all farm
It is not that negitive because you are making progress on the land
Yup, I thought this year was good overall. The “negative cash flow” was just due to making equity payments on the land. Super good year, can’t complain at all!
What you gonna seed next
Can you please do a shop tour and tool box tour
what part of iowa you guys farm?
What advice could you give to someone starting with nothing to get into farming?
Marry well
In all seriousness, start small, avoid commodity crops, think outside the box, integrate livestock, and don’t use farming as a way to support an equipment addiction
Only way I am “hobby” farming here is by have supplemental income/off farm income. That’s probably the fastest and safest way to get into it if you don’t live around it or have anyone to help you. Bunch of different ways to do it, but having a financial safety net before you start is always good.
Find a mentor. Going at it blind is a failure from the start.
@@spencerhilbert preach it bud. That’s exactly what I’m saying
Better than my country's farm. It's 2024 but still using buffalo water 😂😂😂
We needed 2 more extra trailers for corn this year (2 acers od corn)
Why do you rotate crops??
Is it Like bad for the land if your keep planting the same crop??
It can be bad if you don't rotate. Different crops also grow better or worse depending on soil conditions. If you have a source of good fertilizer that won't break the bank you can plant the same crop every year but fertilizer tends to be expensive unless you have connections to a animal farm of some sort where you can get the manure for cheaper
What off Farm income are we talking to cover the $5k?
I always figure the cost of land rent for land costs and consider the land purchase a separate entity in my mind. Even if the lands paid for I could rent it to someone else.🤓
Can you write off some expenses against your UA-cam revenue? Good video.
If you put Tylenol in there you might get better at yield
I noticed there was no subsidiary's included in your calculations, is that just an EU thing or are American farmers also supported by government?
Build a dike a couple feet high to keep the water back…
🚜
So if you know your cash flow is guaranteed to be better/higher next year, you could buy something to get out of the red with a tax write off? 🤔🤨
Tariffs the wild card.
How is his cash flow guaranteed to be better? Also if he didn't make any money this year he's not paying any income tax, so why would he buy something to go further in the red?
If tariffs & retaliations happen, what then?
China has already stopped buying US soybeans. Mexico just banned GMO (US) Corn. Crazy stuff.
@@krusejonathan01 edible corn farming is very small
We're done pandering to other countries
@ True.
@ I’ve never seen someone so excited about paying new taxes. Good times.
DO YOU EMPLOY SIR,I am looking for work
How do you live bro?
Nice family bro
This is just part time/hobby. I have full time job outside of this. This isn’t very much work to do.
@@spencerhilbertthat makes sense, because I’ve always wondered why you have such nice equipment yet so few acres
25 d for combining thats cheap was pay 35 canadian 25 years ago
u didn't say how much fuel u spent... that is one of the most expensive stuffs where profits go down
It’s baked into the expense of all the applications and task. For example the planting cost per acre is accounting for fuel.
No wonder the Amish Save the money lol
Prices have crashed due to the outgoing president and administration. We are in the highest agricultural trade deficit since the early 80s.
First
Farming simulator looks to real I know that you are a irl farmer but it looked to fake
have to know your numbers, if not, you don't have a business.
Stop making videos
Shut up retard
@spencerhilbert could you post your spreadsheet template? Beginning farmer and having trouble keeping track of expenses and such
Pay him and get the spreadsheet,
If it’s side hill leakage then just rent a bulldozer and take away that hill. They aren’t huge hills just mounds with gradual slopes