How Much I Made Farming from Scratch (1st Year)
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- čas přidán 13. 12. 2023
- In this video I answer the most asked question I got this year. I show my annual land cost on year 1 and total input cost towards raising the crop. Combining the cost of Land and Input we were $56,000 in the hole. Revenue from the corn came to $40,400. According to my calculations we lost about $16,000 this year. This being my first year farming, it should only get more efficient from here on out.
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Checkout the full video on my channel for more details!
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Edited By: Cameron Wade
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how much i made farming from scratch 1st year
#farming #harvest #agriculture #corn #shorts
For those who are finding the numbers confusing, I will explain: All costs are what I had to pay out of pocket in year 1. For example, the land cost is a combination of (Principle payment, interest, and property tax) which totals 25k out of pocket year 1 for land cost. (Purchase price is 400k or 9k per tillable acre) Put a 10% downpayment.
Next are the input costs: That's everything else from crop insurance, equipment, and corn inputs to everything else in between. Most of the equipment I am borrowing and that rate is calculated at the 2023 custom cost of hiring out the work. For example, custom combining is $42 an acre so that comes to $1800 in my situation.
I know most people understand all this, but I have gotten many comments asking how I bought 50 acres for a total of $25k. So thought I would just help answer those questions in one comment. I am not complaining whatsoever and I am quite happy with the yields I got this year! Many have asked if I have gotten any government subsidies, and I have not gotten any nor am I asking to get subsidies.
Everyone has their own opinions on government subsidies. Nowhere am I an expert in any of this and they are all just my opinions which can change over time. For those who want more detail, I have a 15-minute video breaking every cost down in more detail on the channel. Hopefully, this helps answer those questions.
cool
What the sigma
I worked for a raw milk dairy for a few years. When I asked the owner if he took government hand outs, he looked at me and said "f*** the government, I will never take money from them" dude was a pain in the ass but I respected that.
Seems like you got somebody to finance you and you just dropped your 30 k. That tractor should have been way more than that alone 😅
@@jordanperron2101like I said above I am borrowing almost all the equipment you see in this video. Bigger tractor and combine are my brothers. He started 3 years ago. I priced the cost of borrowing his equipment at the custom rate to have someone plant for example with a 200hp tractor. Essentially if I would have hired someone to do the work it was I priced equipment at. Hope this makes sense.
Hang in there, when i started farming i was young and broke, but through years of hard work and determination, i am no longer young.
Me and my wife are laughing at this one!
Man I am an aspiring farmer. Stop discouraging me 😢
Just broke?😂
This is an underrated comment haha😂😂
I’m dying 😂
My grandfather has a saying. If you wanna make a million with farming you gotta start with 2 million
Haha 😂
Yea but that’s not making a million.
The saying goes if you wanna become a millionaire farming you need to start with 2
@@dalehopfinger7233 thanks for the correction
Facts
You'd need to first be a billionaire with today's prices 🤣
“If I won the lottery I could farm for 10 more years”
Dude losing 16 K on year 1 when you had to purchase all the overhead is technically winning. God bless you brother 🎉 hard work pays off
he's counting the principle and interest payment into that. once he's cleared of the mortgage he'll be making a 15% profit margin.
Even if he kept 100% of his proceeds, he could make that from a part time job and not deal with any of the risk!
@@jonfussleyea but working a part time isn’t as fulfilling especially when you got a clear passion for farming like this dude
@jonfussle everyone forgets that in the first year of literally any business you're basically guaranteed to make a loss from the startup payments. This isn't even remotely reflective of his future profit
@@penitent2401 also dont forget the equipment which he wont need to buy again but only maintain
“Behind every successful rancher is a wife with a job in town.”
Most of the time their teachers at the school
As the wife I'm cracking up 😂
A job with medical insurance.
@@michaelwalker9118But not the English teacher teaching you grammar right?
@@rawimpactYou missed a comma after the word 'grammar' lmao stay silent and humble son
One of our coworkers won the lottery and when they asked him what he was going to do with the money he told them he was going to farm until it was all gone.
That's a very old joke
honestly tho, thats what i would do, idc if i lose most of it doing that, i wanna have a farm
Have yet to see a story about a lottery winner losing it all from farming.
I heard this 40 years ago.😂
Probably the best 5 days of his life
You can increase corn yield by planting red silk beans in between corn rows.
And dont forget about the Tri-field system to let the soil rest!
Bro actually went through it in a short and told us how to find out more. Finally someone using these shorts right
Man these new farming simulator graphics looking nice
Lame ass comment
for real 😂
wow you don't get out much do you
@@merlynscave1821 it’s called a joke i live all around farms bruh
@@jacedoran2853 ahhh, I guess it's all in the tempo of the humor I missed
The trick to most farming is he will have the land paid off and the idea is once the land paid off he would have made money. But really what he'll do once that lands paid off is by more land
Yup . Nailed it. If you brake even , the land value is the win.
@AlwaysWankershimhe'll be wealthy just Mayne not rich
What most people don't understand is that 16k wasn't lost. It went into the purchase of the land. If he was renting, then yes, it's a 16k actual loss that will never be recovered.
1 person tryin to farm 50 aces with that type of macbinary wont ever make money. just doesnt work lol. he will need min of around 1k acreas with those machines to offset the costs. even then unles u get bumper crop, and high price year its struggle.
may not rain, may get hailed out, etc. farming is gambling. sure with a lot of knowledge u can def tilt in in ur favor. i seen many do it.. but more go bankrupt.
the real trick is farm subsidies
Farmers buy everything at retail and sell everything at wholesale.
Farmers are backbone of world ...they feed everyone ....my wishes for a profitable year ahead
It’s crazy to see this in the US. My family being from Mexico if you farm their competently you have pretty much guaranteed generational wealth
It's because of the seed and elevator monopolies here. Greedy corporations making big money off the backs of hard working farmers, while they do very little to "earn" that money. Like every other US business, it's a scam.
That’s the key though, he doesn’t own the land it’s a loan. Once he owns the land he’ll be in basically pure profit
And that's why u see more and more white people as farmers in Mexico
@@westcoast6162 I wouldn’t assume it’s that many. Many farm land in Mexico is inherited and they don’t really sell it. At worst you can rent your land out to a farmer for them to work it and you get passive income
@@user-pi8jk4tv6gnot quite because he said his input or operational cost is 30k he made a profit of 40k so that’s only 10k gross and we haven’t even talked about taxes 😂
Farming is one of those businesses were someone else sets the price of your products. You just have to love it because it can be fairly difficult to make money year after year .
When people asking for canceling subsidies, they don't know what they are talking about.
also your kids and grandkids will be rich af, but you will be miserable.
@@3s0t3r1c My country did it and farmers seem to be doing ok.
@@119beaker I bet is not in EU or US.
@@3s0t3r1c No. New Zealand
I met the wife of a local rancher with a big spread in MBA school. Everyone thought they were rich, they werent. She said "If we liked gambling we would move to Las Vegas. " She was training to get a REAL job so they could keep ranching. The margins are often very thin in agriculture until the land is paid off & lien free.
We need more farmers and you made the decision to do what majority of Americans will not do. I give you respect. The price of corn is too low. The wholesalers are making all the $ without breaking a sweat.
An old man told me something when I started farming. He said “son, don’t keep too sharp of a pencil or you’ll figure out that you never make any money”. It’s held true to this day but I love it and it’s the only thing that keeps me from going insane
That's a good saying. thanks for leaving the comment!
Farms are not about making money, they are about making food. That harvest will feed thousands of people for a year. We used to keep a town's market supplied with pigs, until about 1998 when more people were going for 'The Continental Breakfast', instead of the traditional Bacon and Eggs.
About 15 years ago, I told my dad that if I had a few dozen grand to put anywhere, I would have bought farmland. He told me he never met a rich farmer. I didn't want to be a farmer, I wanted to own the land. You can rent that out to people who want to do the work.
That’s crazy to think that the people who grow the food don’t make money
@@AnoopSathyan0197 Amen 🙏🏼
Feels good to see such a young man operating his own farm💪
he contracts out the planting and the spraying and the harvesting since he has no equipment of his own.
So what farming is he doing? He owns the land,
and lays out the money for seed/fert/planting,
and loses at the end of the year when he sells his crop.
He is going spend 40k a year between loan and loss, for 25 years, which is 1 million, to pay off 50 acres,
which would mean it cost him $40k per acre in the end, for that 9k per acre purchase price.
If corn prices increase he will lose less money.
Holy shit that’s really cheap starting costs to be fair, hope this ends up a success for you man it’s amazing to see people who weren’t born into it starting up.
Next time will be better. And better and better every year! I love to follow you and hope you could post more videos with more details of the journey...
The real $ was from the plants in the tree line.
@ghammond3132ok but he had the start up cost this year and wasn’t as experienced
It wont get better, his soil is getting worse because he is Factory Farming and not doing regenerative farming
Don’t give up. Next year you can lose $12000.
@@aaronlohr8477 As long as the accountant says you are making a loss, you don't pay taxes...!
Also making bread for your family is just one of the perks of the job.
He forgot the cost of that 6 figure combine and corn trailer.
He hired someone to harvest the crop.
@Wisconsinpete55 no..he and his brother
Not 6 figure machine n yes that's included in equipment
@@felixpropertymanagement7342lol where can you find a tractor like his for $30,500? Let alone the combine & trailor. Unless he bought them all used and financed them over a decade at like 15% interest
@@felixpropertymanagement7342 where are you buying a combine for less than $100k. They cost between 100-500k normally.
Makes sense now! Shared equipment is key for new farmers. People help each other in the farming world and that's a great thing
he pays other farmers to plant and harvest for him.
problem is, he gets planted late, after the farmer plants theirs, so he has reduced yield.
They also get harvested last, so that might mean
the lose a portion of the crop to weather
or have higher moisture content in the grain and spend more to dry it.
Better to have your own equipment, but with 50 acres,
that is not possible with grain and make any money,
Grain is a big acre game, 500 acres still small, 1000 acres as a min really.
My man took farming simulator to a whole new level
This just proves the saying. You gotta love your job.😊😊❤ I think farmers deserve more credit than they get.
Thanks for the honesty. Too many people depict farming/homesteading as some kinda get-rich-quick scheme instead of a long-term investment requiring significant labour and dedication with slow returns, dependent on weather conditions and good health.
I watch your farming videos while playing farming, simulator 19 you and Grant are the best
Make sure to rotate crops so the soil doesn’t get too used in certain aspects
I have total respect for farmers but so many farmers say they lose money...
This is my year 1. These are my yearly cash flow numbers. I self fund the loss and all the initial cost with a separate job Equipment/land down payment weren’t totally showed in this short vid.
@@spencerhilbert yeah but from next year onwards you will be in profit
@@kushagarsharma4783I mean so what, like even if the net output of corn doubled (which won’t happen), and the initial costs decrease, there will be barely any profit, when you actually need to be making way more than that to actually live
This is not true farming. These are just guys who run machinery. Follow the regenerative farmers if you want to meet actual farmers who trying to work with nature instead of against it.
@@ryanblake365 Being a hippie isn't being a farmer. Farming is about producing enough food to make enough profit to survive another year, not about hugging the trees
He said it so proudly
Most middle class Americans carry twice that loss in credit card debt and they usually have little to no equity in any property.
If total was 30k including labour.. What was the labour?
I'm more curious how someone gets 50 clear acres for 25 thousand...
@@raymondmackenzie4889likely an estimate as iirc this guy had the help of family members and such, but can't really remember if he had outside help.
But regardless, you should always take into account your own labor and opportunity cost, let's say he worked 1000 hours himself and he used to have a job that paid $15 an hour, that's an opportunity cost of $15k and then we can also do that same with the average salary of a farm hand, of which i have no clue, and you have your super rough estimates of your own labor cost.
Never work for free.
That was just one years worth of mortgage, he said he paid 400k for the land in a different comment @bentonrector2641
A business that pays itself off within 2 years is amazing
Farmers are so important. I wish life was easier on them.
I would be happy to pay a little more if I actually believed they would get the proceeds.
To many in the middle full of greed.
Same in trucking.
Thank you for your service. Personally farmers have a lot of respect in my heart. Wouldn’t mind being a rancher one day
Awesome man! Keep it up, you’re going to crush it!
Keep up the great work
You need to run it like the government don't worry about the loss you can just add more money to it next year
Gotta respect the farmers. Thank you for what you do!
Interesting. Thanks for the video.
Thanks for keeping us fed!
We must respect farmers. We eat because they grow crops even when it is a loss. Corporations wont do it unless there is a profit.
You know a corporation is just a structure of a company. I’ve worked for corporations with 3 employees
Or stop eating corn and eat meat
Not really. Corps take losses all the time. Is called a write off n Spencer gets the same treatment
@jeffhall768 no one is eating this corn n wtf you think livestock eats?
No one works at loss for the good of others...not for long at least.
That’s pretty good actually. One more year you could pay off the 16k from debt (loss) and have a gain of 30k. Only gets better from here.
Huh?
@@noahnelson8259 Nvm
What's that Pokèmon!
@@joseph7972 Goofy from Mickey Mouse
Math is clearly not your forte.
thanks I'll share this to my friend and Head over to complete video for full context
Why do so many of you think farmers get a subsidy. Only subsidy I got was part of my crop insurance paid. The real question everyone should think about is how many jobs there is because of farmers. We risk it all. All the time. No guaranteed pay check. Some years we make money. Some years we lose.
That’s every business or corporation or company. Your not special farmers
@@uberhaxonovayes they are. Without farmers you’d be nothing clown. Based on your pfp, I doubt you’d even be able to lift up a chihuahua
@@uberhaxonova wont be saying that when farmers stop feeding you
@@doozywoozy7705 I’m educated unlike farmers lol. Only reason you’re in your position is your lack of education. For if you had knowledge you’d be in a much better position within society
@@doozywoozy7705buying food from a developing country is less expensive than paying your ass.
It's always hard getting started.
My family are tobacco farmers
Many up and down years, it will pay off. Be smart, learn from mistakes, and you will be fine.
So they trade in death, just like poppy farmers in Afghanistan. Shame on you.
Sorry for Your Loss. But a Great Job on your Channel.
Keep Up The Dream. Congratulations on the Hard Work 👍
Beautiful farm! I’m not a farmer, but I have an Ag degree and understand all the knowledge needed, in addition to the hard work. Thanks for sharing (and educating)! 🚜🌽
I want to become a farmer myself and your just feeding my addiction 😂Thanks for all the likes ❤️.how am I almost at 100 likes thank you all
Unrealistic pricing the equipment alone over 100k
@@user-vl5hi9ef1s I’m going to do another job first to buy old equipment and rent a bit of land
Our family operated on 27 sections. It’s split between farm,hay, and pastures but farming you will need a lot of money to get started. Last winter I met a 1st generation rancher and he said the only way he was able to do it was because he made 300k a year. Equipment will kill you and as soon as you become a farmer/rancher is when random shit breaks on you and realizing how much parts blow a hole in your pocket
@@user-vl5hi9ef1sthat very much depends on the type of terrain and type of farming you want to do.
@@BustyBritchesfor sure a good thing to do is to Marry the daughter of a mechanic
If anyone says they go into farming and turn a profit the first year. They lying there ass off to you
Thanks. Better luck next year.
no one tell this man this will be the hottest year and the most cool. let that sink in....
Am I missing something? You were able to buy a farm, run it for 1 year and pay off the property costs all but $16k in a single year? That's incredible!! Most people going into business take 10 to15 years to pay for the land.
Yup, paid all my variable cost and put some money down to pay off the land. Thanks for watching have a good year 👍
That’s what I’m saying I had to rewatch the vid like 4 times to make sure I heard it right cause I started reading the comments an ppl are all you need a day job to farm lol . Yo me that sounds like a great investment. You only got 13 grand left on land then it just be tax’s an operating cost the rest is profit so after a few years you should be doin pretty good as long as you have harvest that are decent. I would think tho the second an 3rd year your production should get better cause your taking care of the land an learning from mistakes.
To be fair I wouldn’t be able to afford this without a “separate day job”.
@@spencerhilbertthat fair but to say you can basically have the land payed for in one season seems like your doin pretty good . Furthermore if you did not have another job what would u do it can’t possibly take alot time all season you got spring an fall work an some fertilizer an basic maintenance during the summer but it’s not like you got to watch the corn grow every day
O no I won’t have the land paid off in one season… I paid 400k total. The 25k is year one land cost. It’ll take me 20-25 years to pay it off while being cash flow negative at this rate. I have my day job to subsidize the debt.
Your principle on the land is a cashflow item, not an expensive. Otherwise sounds about right...welcome to ag lol
Haha 😂
This guy took farming to a whole nother level 😂
Thank you for being a farmer, probably the most important work in the world.
How was your year?
Great. Only lost a small cars worth of money.
God bless the farmers. The only people to buy supplies at retail price and sell at wholesale prices so we all can survive.
Yea they deserve more respect and support
It’s better than it looks. That’s with he cost of equipment, ground, and everything else. Next year he won’t have to buy all that. But I agree. They should get more
@@WesternEagle223 if he purchased everything in cash, you’re right. He likely didn’t. He’s probably got 5-10 year loans on his land and equipment. One of the only feasible ways he’ll turn a profit (if he continues with his model) is by reducing labor and/or inputs. Diesel, fertilizer, engine oil, herbicide/pesticide, replacement parts for equipment, and supplemental water is not cheap.
He should consider going no-till and planting cover crops to supplement income and keep his soil covered. Have carbon covering the soil as much as humanly possible. Ween off chemical fertilizers, herbicides, and pesticides. Increasing soil health reduces input costs and increases yield.
@@paulwinters6024 I learned something today, i farm but im only a helping hand
Combine harvester ,300,000 50hp tractor35-50hs 100 hp tractor50g and up 100 more ac sell it to a warehouse retire with couple million
This is why you buy from farmers and not the grocery store, support the farmers who are making a honest living
How much $subsidies did you get?
Shhh, don't tell the media.
If he actually got anything: $40,400 in corn sold times 4.4% = $1778
"Oct 5, 2023 Corn growers received the most product-specific assistance with $2.2 billion in subsidies. That was only about 4.4% of the $50.4 billion in total corn production that year." ---usafacts
You gonna be selling in a few years kid
I'm so glad I've found this channel my dream is own a farm and it's awesome to see what your doing and hearing your costs ect thanks man keep up the great work 👍
“Here’s how much a made farming this year!
Negative 16k!”
Sounds about right
We got close to 7$ a bushel in Ohio
Here in Ohio, we actually support our farmers, to be fair. Most states don't give a shit about their people anymore
@@cherrypepsi2815 right on
Yeah last year. Farmers don’t set grain prices. Either sell it at market rate today or store it and hope the price goes up to sell in future.
@@connergazal3072 I know that and corn is supposed to be bad this year
The lost is from those aliens drawing on the corn field
Keep farming brother. We need you.
I wish you will make huge money boy , finger crossed ❤
Nice short!
I genuinely believed that this video was talking about farming sim for a minute😂
My great uncles always say that farming is the most extreme form of gambling
Good Luck!
That's crazyyyyy. Farmers are so under appreciated and underpaid
it is incredibly hard to make it as a farmer. keep up the hard work you’re doing great
That’s awesome, great video. Nice relax life too
Thank you for the honesty and that's the cost of doing business and putting it out there because there's always learning and it's priceless
Wish I could do the same with my grandparents farm. About 120 acres. But the equipment was sold years ago. So I'd have to start from scratch even go as far as to putting new buildings up etc. Hats off to you.
Farmers....who I have the most respect for... I grew up around farmers. Hard working people...
Even though it's a loss it's a learning curve hope the rest are better
Never met you before, but dam man im proud of you.
Hard worker. Good stuff. Wish I could do it
Most people only post WOW WE MADE SO MUCH MONEY OMG YOU CAN TOO
It's nice to see someone sharing their real experience and not being afraid to show how difficult it can be to start something new
Surprisingly little damage for it being the first year, God willing it will start being profitable soon.
Good luck man
Nice monoculture of corn, gotta keep supporting that corn industry!!!!
Lose more if you do it the PC way. (Just check the 'sustainable farmers', who leave it after a decade. Sustainable in name only...but PC.)
This guy is doing great. He is turning a good profit if you consider his ad revenue. Documenting his farming for CZcams is the best decision he could have possibly made.
Yes absolutely. Wasn’t banking on having this “CZcams money” but for sure makes the numbers look a lot better.
That's actually really good for your first year! Congrats!
Yeah I agree thanks!
would be interesting to have data on fixed vs variable costs considering its your first year to be able to look at projected cashflows next year
My grandfather always said. “Farming, the only business you buy retail and sell wholesale” miss the old WW2 boys… we need em back.
Every farmer or rancher I’ve ever talked to has told me the same thing. You don’t do it for the money, you do it because you love it.
"A lot of you want to know how much money I made; I didn't"
Thank you for your honesty ❤
Bros playing farming simulator irl
400k for that many acres is a fucking a steal and makes me want to cry.
Ty for the video
The real trick is being able to save up that initial buy-in cost. You must have a great job. I can barely afford to save at all right now.
“It’s going to be a whole lot easier next year” *laughs in equipment repair*
Growing up in a world where being a farmer, the literal backbone of our species that makes food from dirt, comes with the prerequisite of having tens of thousands of dollars just to get started and lose money your first year. What an amazing world we made.
I know what you mean. In my opinion we have more opportunities now than ever before. Life has never been easier and have so many different tools and technology to help. The fact you can type on CZcams a problem you have on a vehicle or piece of equipment and see someone explain how to fix it. The amount of information out there on the internet completely levels the playing field and rewards those who are willing to work the hardest IMO.
I think its important for people to know that farming is also profitable. It is definitely challenging and you need to know how to manage money.
So so so so cool love farming grew up farming thanks for sharing brings back good memmories
Done my best to start this. Got Drugged. My love farming😊
Sounds like a solid start. Onwards and upwards!
thanks for your hard work I enjoy food very much