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 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!
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?
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.
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!
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
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!
Awsome videos just wish there was more!! Day to day farm living is always cool to see
Great video enjoy watching keep up the great work
You gotta get the solar power mod to offset that loss lol . Great video.
Good luck man 🍀
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!
Awesome video 😊
Love the video
Have you looked into if planting cover crops or anything would keep input costs down?
Hey big Spence!!
W vid man
Can you please do a shop tour and tool box tour
If you put Tylenol in there you might get better at yield
do you have any pipes underground to water the field?
Do you get any subsidies for farming?
what part of iowa you guys farm?
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.
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?
No wonder the Amish Save the money lol
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.
First
@spencerhilbert could you post your spreadsheet template? Beginning farmer and having trouble keeping track of expenses and such