Friends Don't Let Friends become farmers but if you really want my advice, I don't think it is a bad idea

My lovely and gracious wife has imposed a quarantine. My ribs and back ache from coughing. However, I think I am well as I am worried about getting my work done.

I have ordered a lot of parts for the grain drill and I must install them. I don't have much work lined up but it needs to be ready to go.

This worry is a good thing. Not to belabor a long dead horse but... But after spending eight years at a dead end job, it is nice to have "performance" anxiety. Plus, my unemployment just ran out so I really am on my own time!

I have been on my phone a lot while propped in a chair trying not to cough. There are lot of earnest young farmer videos on my Boomerbook and instagram feeds.  It is always the same jaw. High prices for materials and land, low commodities prices, high intrest, rates, high rent, old guys not turning loose, and now there is just a hint of resentment towards megafarms.

Many modern farmers secretly love megafarmers as we all think we have the special key to farming better than anyone else. We don't... 

It seems to me that nerve, cleverness, luck, and just being willing to start over from nothing multiple times is really the key to anything.  Every potential farmer should memorize this advice from my favorite disillusioned colonialist. (Yes, you can be a woman farmer and apply this universal advice)

There is also this poem which I feel has relevance to any of my nephews who may stumble across this blog.

He wandered down the mountain grade

    Beyond the speed assigned—
A youth whom Justice often stayed
    And generally fined.

He went alone, that none might know
    If he could drive or steer.
Now he is in the ditch, and Oh!
    The differential gear!

But I digress..

My problem as a farmer is that I never intended to be a farmer. I just came back to the farm one summer and never left...

I was like many of kids I met working at the College, I didn't know what to do with my life and my parents thought going to college would raise my status. I caught the beginning of the modern Disneyesque fallacy of "follow your dreams," and didn't listen to my parents advice to pick a good career.

Follow your dreams is an excellent idea/goal if you have a solid background to build from. If you do not really know what you like, if you are interested in lots of different things, but are not especially talented at one thing, being told to follow your dreams is failure. 

I should have become a teacher or professor.

I grew up when people thought college would change your life and when people believed you could do anything you wanted with a classic liberal arts education. This was true for some of my friends who went to Colleges where they could change their social caste or build ongoing relationships. I went to George Fox University and Rosedale Bible College. I have no interest in bland modern interpretations of Christianity, I don't like modern worship music, I did not become a member of the Friends Church, or a "politically conservative, theologically challenged," Mennonite, or a douchey white Liberal. 

I somehow accidentally became a grumpy farmer...

But that was a lot of rambling to set up a background so I can say that if I was a young person who wanted to farm in todays world, this is what I would do.

There are three paths to intentionally starting out as a farmer. 

You can work your butt off for your parents and neighbors and build up your farm as you are able. If you get a job with a successful farmer a lot of times they will help you get started. 

You can get a job out of high school and get a retirement account started early, save up money, build credit, learn a trade or skill which you supplement your farm income.

Go to college...

Going to college is the long route. If you go to a trade school, you can start making good money and start a retirement account. You might also look for jobs in the agriculture sector. For example if you are a carpenter, diesel mechanic, welder and work with farmers you will build relationships and get opportunities to pick up ground from an insider perspective. 

If you get a four year degree, for the love of Pete, get something useful. Focus on Accounting, Science, learn how to write grants, study crop science, biology. If you can put up with the BS, try environmental science or forestry. (Of course there are always exceptions. I knew a student who majored in archaeology that was essentially recruited out of college and has a great government job where she gets to travel and gets paid well) 

I also know of young people who got two year Agricultural Science degrees from the Community College, or four year degrees from Oregon State and got jobs in ag related industries and used that to leverage into farming.

When you decided to farm you have to make some essentially philosophical decisions. Are you going to follow the "go big or go home," path or do you want to build slowly.  

Either way you have the advantage of the USDA young farmer program where you can get low interest loans and other help. (This is where I went wrong. I did not take advantage of this program and expand when I needed to do so.)

I am not going to elaborate on the "Go Big Or Go Home," concept as I am not a plunger. I am going to use more what I wish I would have done.

(Also, don't ditch your first job to go to Costa Rica and then just screw around for several years. This is a bad plan...)

When you really start thinking about farming you have to look at where you can fit in to make extra cash. 

When you plant a crop, you may have one or two years before you see a return. When you find ground that you can afford to farm you will soon see reason why it was cheap. It may be wet, have 4.1 pH, have serious weed issues, be on a 10 percent slope, or just be a lot of small odd shaped field. This is fine, if you have to do it you have to do it.

But, you have to have cash flow and you will have to have a skill that you can rent out to other farmers. Truck driving is an excellent option as a Farm Endorsement is easy to get, but if you have a CDL then you can have more options. Although, I would recommend staying in the Ag community as they best way to get ahead is though relationships that you build. Welding, electrical, accounting, carpentry, are all good side gigs.

Don't fall into the new equipment trap but don't hold on to junk. 

You will have to finance key pieces of equipment, especially if you are doing custom work.

When I started doing custom no-till planting I financed the drill.  However, I rented it the first year and figured out a business plan. I lined up twice as many acres as I needed to make the payment. I used a Minneapolis-Moline G1355 that I paid $4,000 for several years previously. 

I soon discovered that I needed front wheel assist. I then bought a 1984 White 2-155 with 6,000 hours and nice paint for $17,500 and that was probably a mistake due to my lack of nerve. I should have gone one step further and bought the 1990 185 White for $25,000 as I still have that 2-155 and have put two engines and another like 8,000 hours on it.

1972 White 2-60 cost $2500. New Holland BC5070 was financed at $12,000 ten years ago and it is time to be replaced. Purchased baler because I had a deal to supply 10,000 bales a year to a feed store at $2.25 a bale. Paid for the baler. (20% down and 5%, paid for it over 3 years)

I just looked at this baler to replace my old one. It is newer and has a heavier frame and better hydraulics. Price per bale is now $4.50 to feedstore but can probably only sell 3,000 bales per year.  I passed on the purchase price of $25,000 (10% down and 7 percent on 5 years)

Previous century White tractors with cold a/c and a lot of hydraulics. This year I rebuilt one powershift and replaced a front axle, have another front axle to work on, another powershift to rebuild, a lot of electrical issues, hydraulic leaks, really wish I could upgrade to a Case/IH 7250 or a White 4-270 (and a 2-110 FWA or a decent condition 105 for the mower and baler)

The only thing I have ever found that made money reliably and I am sorry to see it end. This 2-155 has seen two Great Plains 1500 no-till drills. I really need to update the drill but out of my  original customers three are dead, two have retired, two bought their own drills, plus the government payments have changed, and chemicals are so expensive you might as well work the ground.

But I digress...

What I want to say is you have to realize what makes money. Your tractor must be reliable but there is no shame in pulling a $20,000 baler with a $2500 White 2-60 with no cab and air conditioning as long as you have the sales to make the payment.

Focus on fertility and pay attention to trends. Right now the new buzzword is Regenerative Agriculture. It is a pretty broad term but if it means more sales of Buckwheat and Annual Ryegrass and more grant opportunities, I am interested. If I am still sick, or if I am driving in circles I am going to attend these webinars.

Interact with other farmers. I tend not to. Friend networks are so important. Small farmers need to work with people they can trust. I can't tell you how many times I have hired neighbors to haul hay or unload trucks or asked for advice, only to lose my customer or lose ground.

Don't hold a grudge, but don't be a pushover. Its great to be nice and helpful and carry people who can't pay but some people will use you for self financing. Don't let it happen twice. But, don't be mad for more that one season.

Finally, that USDA beginning farmer loan program.  Use it.... If I would have had the balls to buy a farm with it 30 years ago I would be a millionaire right now. Or two balers and a stacker, or rented good ground. It is there to be used. Also, I realize I only have ten readers a week but if you are female or not a White Male, the USDA desperately wants to give you money. Take advantage of it!

The best advice I was ever given.

Know who your friends are, No one cares about your money like you do, Some people just like to talk... They are NOT your friends.

Have a happy day!