Did We Make A Huge Mistake?
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- Опубликовано: 15 окт 2024
- We decided not to buy our neighbors farm, did we make a huge mistake? Thank you for watching!
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Cole The Cornstar, aka Cole, is a 4th generation family farmer from Central Iowa who is the life force behind his family’s 1,700 acre farm. Cole promotes agriculture by filming his day-to-day adventures with his Dad (Daddy Cornstar) and brother (Cooper) on the farm. With a lot of help from Daddy Cornstar, Cole instills humor and education into his videos fit for both young adults and adults. Despite being 23-years old, Cole has an old-fashion work ethic with an innovative approach toward agricultural technology and practices. Cole's mission is to prove the American Dream is not dead and be a megaphone for agricultural education and innovation, from technological advances in farming equipment to conservation practices.
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Cole The Cornstar
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Well, as a CPA, I approve of this message! Honestly, refreshing to see someone actually taking the time and not being impulsive. Besides, sounds like a good side hustle might be business consulting for other farmers.
Making a video curse could be viable to built a bussiness. Later employing consultants who could grow it. And then I'm sure this already exists... and it makes more sense to focus on the current stuff.
We love these "behind the scene" videos and honestly, you could make them a lot longer and I think we'd still watch.
RUclips statistics reckon people are more likely to watch RUclips a video to the end if they are 15 mins or shorter ..not my opinion
You have to keep in mind that cole edits his own videos, i think it already takes long enough for him and hes still mainly a farmer
Agreed. I don't mind what length Cole's videos are, but the longer the better. I always look forward to them. It beats watching crap TV over here in the UK!
I know a lot of us would enjoy longer videos but for the amount of time it takes to edit it does not make since, I would rather have a good quality 10 min video that will get him more views and ad revenue then a 20 min video that is not edited well and is pushed to less people.
@Barbie Bush Rowley quality is better than quantity. JS
I want to remind everybody, if no one has yet- Cole has a degree in finance. He seems to put that degree to good use on his farm. I credit him, in his youth, to have selected such a useful degree!
...and I've recommended it to friends high school kids that are whip-smart, and go-getters, by sharing coles video on "Graduating College Debt Free". They should have that video on repeat everyday, in all high schools.
@@petepage2076 wtf
@@tnerbsg8134 I think he meant ‘by sharing’.
@@susanrussell8195 wtf
@@tnerbsg8134 Well, your eloquence has left me scratching my head. Not sure why you had the reaction to either comment, but okay.
You are the only farm channel that I follow that shares the financial side of running a farm and I appreciate the insight
It is very interesting. I never knew.
I was born and raised on a farm until I went to college. I was never privy to any of the financial stuff....I find it very interesting!
But most farms just hire someone else to do there financial stuff, the guy I summer help does that, he is older than daddy corn star not by much tho and he doesn’t understand the financial stuff, his wife used to do it but got tired of it so they hire someone to do that for them, and they get by just fine. But ya, not many RUclips farmers besides My Wyoming life is probably the only other one that shares a portion of the financial stats
Well said 👌👌
I agree. I kind of knew that farms had expenses like fuel and tractors and seed, but this gives me a lot more insight into the actual "business" of farming. You keep doing you Cole, your a very smart young man (I'm more than double your age) and I am impressed with your knowledge, and decision making.
You are correct. When I was a kid my grandfather bought something on time for the family, he died suddenly and my parents almost went bankrupt trying to pay the debt off. We are a lot of beans and drank a lot of powdered milk. I am in my 80's and that experience still haunts me. I never made that mistake. So many people don't understand debt and I am happy you are showing them your mindset. It makes perfect sense to me.
agree
Great points, he’s very sensible.
It is so refreshing to see and hear a young person with a great understanding of how the REAL world works! I am 64 and even though I don't know you personally, I am very proud of you. Every video fills me with hope, silly as that may sound. My mother was from Ottumwa and my father was from Waterloo and they met in Des Moines in 1941, married in '45 after the war was over. Although I was born and raised in Los Angeles, I have frequently been asked if I was from the Midwest. I would say no, why? Their response was always something like, "You're so friendly or down to earth." I attribute this to my upbringing from two great Iowans and when you share your life and your family with us RUclipsrs it comforts me. I am a bit embarrassed to say this but I feel closer to my late parents and 6 siblings when I watch the little peeks into your daily lives that you show us. During the insane lockdowns here in California it is easy to become depressed or discouraged at not being able to look at the world. I consider myself an Iowan at heart! Thank you for making this channel and may God continue to bless you and yours.
PLEASE dont put your bin yard in a hole! Raise it 6" a foot. I'm dealing with that on our old farm it's really hard to keep water out when it's the lowest spot
Exactly what I was thinking. You never work towards your lowest ground. You build up to your highest point
Yes, exactly, fill dirt is cheap, very cheap compared to all the trouble standing water causes.
Cole you need to do as you all feel is right !! Hind sight will be 2020 and you will know if you made the right choice someday and if later you feel that maybe you didn't, join the crowd !! Lol make sure you put the grain system high enough to run water away
totaly agree. look at the problems brian has at one of their sites in brians farming videos
Don't think he plans on putting the bins in a hole but on level ground. You can't build the structures they are building on fill, it won't support it.
Cole that was a great quick video. 25 years as an Ag Banker myself, it would have taken me longer to explain it then you did. You are a smart young man!
Yes, he is that and more examples of Opportunity Costs would be helpful since that's difficult for people to understand along with price and valuation of most anything.
The value of land has been known to be set by the damn fool who writes the check for 90 percent more than the result of a proper Valuation analysis.
Cole and an experienced banker should have several great examples.
I love these videos, I wouldn’t mind an entire series of business and finance tips!!! You are very intelligent and it shows by your decision making processes and success. God bless y’all!!!
Very well said, I agree
Hi Cole, my name is Luke and I’m 14 years old. I want to be a farmer some day, I raise cattle right now. Anyways, I would like to thank you so much for all advice and information you have given me. I feel like God has blessed in able to find your channel, learn from your channel, and apply it to life. You have changed my life completely, I would like to thank you it. My photo by the way is a steer that I won Grand Champion home bred Market beef with.
Very well put Luke.
Cole is a good person to look up to.
Good luck.
👍
Good on you! I'm your same age farming dairy and also growing sheep and beef in new Zealand
@@Jesse_andrew--> Wow, impressive. Visitor all the way from New Zealand. Keep watching. You'll learn a 'bunch' as we say here in Texas, USA.
Not a good person to look up to at all. Doesn’t wear a mask EVER. I guess they trust in the fake man in the sky to keep them from dying.
American Covidiots
@@RobotPete not to mention doesn't even acknowledge his post 🤨🤔 when he obviously worships Cole. Sad
I for one, as a man much your elder, appreciate the business savviness. Your personality, transparency and authentic nature is what keeps me coming back for more. Bravo young man. Keep on keeping on!
Agreed
totally agree
Agree
Honesty and authenticity are in very short supply right now. The world needs more people like you! Thank you for your integrity and vulnerability in sharing your family decisions with us. I'd love to see more Finance 101 with Professor Cornstar. God bless you guys!
Cash is king if you can’t pencil and make it pay a guy has to know when to walk away, smart move I respect your decision
You hit the nail on the head when you said you have to take the emotion out of it.
Yes. It's the primary reason comment sections can get nasty. I try to leave emotional reactions out of most interactions I have now. Not that that came naturally. It's been forged over 42 years of dealing with other humans, and humans are messy. Including this one. 🤚
As Warren Buffet once said "If you buy things you do not need, soon you will have to sell things you need."
Or pass up on things that make more sense.
In 6 years, the bin site can support additional land purchases. If available, you can buy the adjoining property then.
Cole, I grew up and went to high school in a farming community in Illinois. Don't stop doing videos like this. People need to know there's more to farming than planting and harvest. Thank you.
Your kind of comment always makes me laugh, in a good way. I just can't forget the Bloomberg guy commenting when he was running for president. "Farming is easy. Ya' dig a hole, put the seed in, cover it up, and water it." Simple-minded wannabe politician. Cole could blow his mind.
@@wkjeom I went to high school in the early 80s. The class now is average age of 55. I know some of the guys I went to school with are still farming.
@@wkjeom ikr
@@wkjeom That's a debate I'd love to see. Someone would limp away with his tail between his legs--and it wouldn't be Mr. Cole
@Tony McSteven hmm never heard that saying before.! Got me thinking why would a snake be nervous. ? ? ? 🤔
Cash Flow is king that’s what everyone forgets, great video. I also started farming in the eighties seeing neighbours go bankrupt sticks with you. I passed up on land 4 years ago because it wouldn’t cash flow best decision I made, 4 years of drought here we would have lost everything. 🤔
Cole is one of the most well spoken and intelligent young men I have come across in a very long time! He keeps impressing me with his business mind and his videos are so entertaining. Cornstar Farms is going to go big places, hopefully he keeps bringing us along on the journey!
I’m glad you took some of the comments and opposed why they wouldn’t necessarily work. It shows that you put the thought and time into your viewers as well as the farm. Props to you man!
Your complexion is really clearing up. Just wanted you to know it’s not unnoticed. That said thank you for sharing your younger generations view of farming and enlightening so many non-farmers. Your parents must be so proud of you, not many 23 year old kids would come up with the concept of starting a RUclips channel to bring in funds to help pay the bills. Can’t wait to see where you guys are at in a year. Congratulations on your success.
Thank you!
Rub a potato cut 1/2 after bath on your face leave on overnight. In 30 days you will not even recognize yourself! Works great!!
Your exactly right I passed on 80 acres in 1979 at $2800 an acre , my dad threw a fit. But ended up buying the same ground 6 years later at $1750 an acre. Nothing in life is a sure thing so hold your ground. It’s 👍 great content.
You can be so goofy and crazy, and then turn around with the same breath and be amazingly concise and intelligent. I bet your Mom and Dad are so proud of both you boys. I’m not excluding your sister, I really just meant that you two fellas are great at “farming”. Not every youngun raised on a farm takes to it like you and your brother.
I believe Corn Pop and MC have a huge role in their interest to stay in the family business. Family dynamics,(or the failing of) are likely responsible for the generation members that choose to go a separate way. If you like your folks, you're more likely to seek out their company.
Sister Cornstar seems to help out more behind the scenes, like backup video editor which is a tedious, time-consuming chore. I have done it. She also has a regular day job.
Yeah, but get a damn haircut!!
@@motor2of7. Agreed...it looks...yack...short hair for guys...theres some really good hairstyles on Google images...long hair on boys makes them look....girly. 👩🦰
@@Rubedo777 Or old fashioned!
"So when it comes to this farm, we have to take all the emotions out of it."
Wise words.
The wisest.
..and the same goes for equipment... don't hold on to it too long, to the point where parts are no longer available, and you can't maximize it's resale value. I typically buy mine used. About 3 years old, and get rid of um when they turn 10. ...no matter if they're in tip top shape.
Bullshit. This is a family farm. Daddy Cornstar with his older vehicles would have more money if he didn't farm with his family and with sons that didn't insist on oversized equipment with the warning stickers in perfect condition instead of a less flashy alternative. There are always emotions, it is just what is your goal and how do you get there.
@@wiserguy7257 Decisions based on emotion are typically bad for business.
@@wiserguy7257 exactly all that crap is to big for 1000 acre farm cause he overspent on the shiny paint and is trying to sell it to real farmers. Lots of 3000 acre farms are still using the older smaller jd and case combines here and to allow your best land go because you wanted a new truck,a combine, a tractor and a lot of technology. It is overwhelming how the fans that know nothing about farming say he has a degree in business hahahahah well my dad teaches business and accounting and has a PhD and you know what happened when the farm went for sale next to us. Bet you had to flip a coin didn't you 🤣 checked the fence fertilized the ground and put a herd of cows on it. We are now watching the place across the creek because it won't be long before we will be trying to get it. God only made it once and you have to jump on it. Well farmers have to jump on it anyways
I trusted your decision when you told us about it. You're a guy who looks at things every which way but Sunday so I had no doubt your decision was sound.
Exactly. Cole is not a person to do anything without giving it a lot of thought first. Also, why is it anyone else's business what him and his family decide. Lol
@Dr. Michael Johnson Jr Why are you surprised about that? I have no experience with farming or business. So for someone like me it's good that he explained all of that. Like Cole said, he wants to explain and show how it works. He's doing a very good job explaining to the people that do not know.
Long story short. Cole knows his stuff when it comes to cash flow
Yes, is Cole's degree in finance or agriculture? Probably both. And he lives both majors, plus he knows how to have fun too.
Simplified or not, that was a great explanation of cash flow.
Every farm is different, there’s a million different ways to look at things! At the end of the day you have to make the choice that helps you sleep at night. Let the negative comments roll off and make the decisions you know to make!
It's like rule #1 of farming, you never can afford everything u want....
Old “Rule of Thumb” for buying more acreage was, if you have the cash to pay 40% of the price and borrow the rest, that acreage will break even over the next 25 yrs. Sounds like the location is perfect. Assuming some of your 1000 acres you own is (maybe only slightly) of lesser quality, you would be improving the overall farm land quality. You absolutely can NOT assume that acreage will become available again in your (or your kids) lifetime. Though it might. All your machinery and bins will wear out. Land most likely will not. Land is almost guaranteed to increase in value (there are years and maybe even decades that have proven this is not always the case each and every year, but over the long haul - and you’re not ever going to sell it - it positively WILL increase in value. Machinery positively WILL decrease in value. The value of the land IS very important even though (as you say) you don’t ever plan to sell it. It provides equity for future borrowing (for maybe more land, or machinery/sheds/equipment). Lots of reasons to BUY.
You’ve highlighted an equal number of reasons to not buy. You’ve made an educated decision NOT to buy. You’ve explained your reasoning - which would seem to indicate that you most likely would never be able to justify buying land ever. (If the price of land would ever reduce to a level so low, or the profit per acre ever increase to such a level so high that you’d say YES let’s buy - there’d be a million other people that would also jump in there to buy (if farming was easy, everyone would do it). Great explanation for how you decided, move on, don’t look back and above all else - don’t over exert yourself trying to convince us “monitor experts” /“RUclips Warriors” to agree with you. It’s YOUR money/ business/life. Doesn’t cost us a penny to tell you how to live your life. May God Bless you, and your family, and your loved ones. And keep these videos coming!
Recall at the beginning of his tutorial he started off mentioning short term debt and long term debt. Because machinery and bins do have a limited lifespan, they are financed with short term debt. That consequently requires higher relative payments respective to long term debt. Eats quickly into cash flow over the near term. As a non-farmer, I would guess that machinery and bins have materially different expected lives, debt amortization and income tax depreciation schedules.
A bin would have a 50 year depreciation schedule.
Machinery would be an 8 year depreciation schedule.
You assume that he wouldn't buy until land prices dropped or production yields increased to a point where "everyone else is too" so he wouldn't be able to.
You failed to consider a far more important aspect of business. Current debt.
He will buy more land, and I can guarantee he will, based on when other debts they carry drop off the ledgers.
Do you think that if they had half the debt on land now than what they currently have it wouldn't have changed the calculations?
And, in the future they will have lower long term debt because of the decisions this young man is helping to make.
Cole, you are doing the right thing! Don't listen to these "buy the land " naysayers, you've got it all figured out, don't overextend yourself. We can all take a play out of your playbook when it comes to money. Just cause you got money or can get a loan doesn't always mean you gotta spend it. 🤑 Putting that finance knowledge to work!
See what happens when this country fails
"For which one of you, when he wants to build a tower, does not first sit down and calculate the cost, to see if he has enough to complete it? Otherwise, when he has laid a foundation and is not able to finish, all who are watching it will begin to ridicule him, saying, ‘This person began to build, and was not able to finish!’ Or what king, when he sets out to meet another king in battle, will not first sit down and consider whether he is strong enough with ten thousand men to face the one coming against him with twenty thousand?" Luke 14:28-31 The secret step for success at anything. You are being guided in the right direction. God bless.
Absolutely well said Sir... Perfect quote... Very well done ❤️💜❤️💜❤️💜❤️💜❤️💜. X X X.
PS which translation did you use or did you modify to modern language yourself..... Nevertheless you are right... Well said Sir... 👍💜
@@Rubedo777 Thank you for the compliment. These scriptures are from the New American Standard Bible, which is my preferred translation. Another one of my favorite scriptures..."All Scripture is God-breathed and is useful for instruction, for conviction, for correction, and for training in righteousness, so that the man of God may be complete, fully equipped for every good work." 2 Timothy 3:16-17 NASB
@@brichter4669 yes exactly...I have a number of translations and recognised I haven't seen this scripture written in this way...
My favourite scripture of all is
Deuteronomy 32:4. Because there is no justice in this Satan driven world. I will find this translation.
Thank you for replying brother.
Best wishes.
Rubedo. 💜
I would love to hear from Daddy Cornstar about the farm crisis. It would be awesome to hear about it from his perspective and what he experienced and how he handled it! Thanks Cole!
We might need a translator 😳
Yes! Particulary with his straight forward manner. He is our favourite cornstar
I am as far from farming as you can get, but I do remember the "crisis." Price of farmland skyrocketed and then crashed. I vaguely recall that there were a lot of "foreign" investors, one reason being that the dollar was very weak. Daddy Cornstar was probably not much older than grade school then.
Yes, please get daddy Cornstar to talk about the farm crisis!!!
I love these financial discussions. It gets everyone thinking and discussing in the comments section. I get to see each side of the argument, do some processing and research, to find my own opinion. I am not a farmer but farming is in my family. These discussions were never had, within our family. For me, this shows me the financial issues my grandparents had to maneuver through to keep the family farm going. I find them extremely enlightening and it shows my families creativity with their decisions. I love everything about these videos!
Without a doubt, you are making the financially smart and responsible decision by not buying that property. My Dad has always said "just because you can make the payments doesn't mean you can afford the payments."
Very interesting! Demonstrates (again) that farming is a thinking man's business; and that it takes a broad range of skills to succeed at farming.
I am a retired farmer and I know all the things you have to look at and you are doing it the right way, that is the way you stay in business.
Farming is a hard life. You don't want to buy something that could put you in a bad spot and loose everything. Keep doing what works best for the farm you are doing great running.
Can't leave your lively hood to chance. Need a buffer for the unexpected, like last year's storm. Ya did good, Cole & Family.
The sellers just want too much for their land. Simple as that. Don’t feel bad for being smart.
100% correct.. If the numbers are that bad per acre and that for 25years its simply way overpriced.. I dont know much about farming in the US but here in Europe i would not even answer such an offer..
Depends on what the land prices are. I remember when land prices were 1k @ acre, today, it's over 8K in my area. So, you can say it's over priced but, if that's what the price of land is going for, you'll be selling at the price too.
@@Ham68229 Except that you are looking at the value based on what someone would buy it from you for and Cole answered that. They don't look at what they could sell it for.
Because they actually farm it the value of the land is based on what it can produce in crop value. It Must, by necessity, produce more crop income than it costs per acre.
Also, this is one of the biggest fallacies we are taught by modern "economics" that the value of a thing is what someone would be willing to pay you for it.
This is false.
The value of a thing should be based on what it costs to replace (for products) or what it can yield (such as farm land or manufacturing facilities).
Like when someone says their car is worth less than it would cost to repair. A car that only costs 3000 to repair but someone would buy for only 500 is not automatically a bad investment to repair. Why? Because you have to take into consideration what it would cost to replace it. If the new car costs 25,000 then it is a worse proposition to replace as long as the repairs over the life span of the replacement remained less than 25000 which has to be considered in that calculation.
They want too much for land and rent. They just listen to whatever the stupid "land managers" tell them.
@@Slidaulth except I am looking at from the same perceptive as Cole. You can call it greed all you want. If that's the going price for the land, then you're undercutting yourself if you're selling.
As a business owner you are absolutely correct in your analysis/decision. Problem is most people don't run businesses but try to be armchair quarterbacks and give advice anyway. I can't tell you the number of times working friends tried to give really bad business advice Second, most people aren't really that good with money. Only take advice from those who walk the walk. Keep doing what your doing. You're headed in the right direction. Im excited to see your farm grow!
I can tell you from experience it's not fun living on a budget so tight that you have nothing left over at the end of the month. I've been there. You can't count on having more money in two years, you may have less. Cole is right to me.
Soooo, there is more to being a farmer, than "just sticking a seed in the ground and watering it?" 😄
Thanks for the financial insights! Great information for all of us! ❤
I guess it's different now. I am so old I can remember when a good farm was 40 acres and a mule.
But Susan... they don't even water it so it's just so easy right? :P
I learn more financial stuff from you than I learned in all my years of being in school. You put it in a way that makes it easy for everyone to understand.... if you wouldn’t mind sometime you should make a video on how your RUclips channel works and how much it produces. I have a small channel but it seems nothing I do helps to make it grow. Some tips would be helpful. Thanks Cole!
Schools don’t teach about cash flow in economics
I automatically knew from the other video that this was not a decision made lightly. I would hope that people watching your videos, especially over the last year, would get the idea that you guys don't just do something on a whim. You take the time to make sure it will benefit the farm now and in the future. I have no clue about farming, just what I've seen from watching your channel, Larson Farms & Welker Farms, but I appreciate how much you share and honestly how much thinking about what you say about finances can apply to just real life stuff.
It is fascinating. I’m not a business-minded person; however, your concrete examples you provide as you’re explaining are superb. You are a really good teacher, in other words (your examples, explanations, etc) particularly for ppl like me who are NOT farmers, NOT literate in terms of business-type finances. I have no meaningful feedback regarding what you guys ultimately decide, rather, focus on your descriptions/ examples to learn a bit about the business of farming on a farm somewhere in Iowa, USA.
It was great to hear your responses to viewer questions and comments. I appreciate your candor and humility.
Thank Cole for uploading! Have a blessed day!
Sweet, a rocket league player 👍
@@c_games5665 is that a problem?
Dang Cole, I’m impressed. I’ve done business all over the world and only a fraction of those People I’ve dealt with have the business intuition that you have. Very impressive! 👍 stay true to the facts and never make decisions with emotion.
I’ve been farm adjacent for my whole life, you’ve provided a better education in the farm business then I’ve every had from anyone I know. You and Pete from Just a few acres both have a teacher’s touch.
Pete is way good!!!
Just for perspective, I tried to buy land in my region in Germany. They ask 70,000€ per hektar (10,000sqm). That is insane, prices sky rocketed in the last couple of years caused by a mistrust in our currency (€uro) and the political system as part of the European Union. People are treating land as investments and not as land to produce food. There is now way a farmer can make a profit of land at this price. Sad.
Try €120.000 in The Netherlands, Also increased in the last couple of years.
Whole Europe , I looked everywhere... every country in the Europe, to get some land .... especially this year , prices went up insane .
we have the same problem here in italy. i saw prices for a fully functional vineyard in Barolo skyrocket between 1.5 milion €/hectare and 2mlns in the past years. and for normal farmland, prices are between 50K and 150K per hectare. for a medium/small farming operation is impossible to cope with this land market
There are many "experts" when it comes to other peoples business. I'll take the word of the young man with the degree in finance ;)
Couldn't have said it better myself 👍
But your not a farmer and don't have a clue. This is the worst farm model on RUclips to buy fancy equipment combine you don't need I farm 1400 acres and the farm right down the road has 3000 nobody is buying that big combine. 1000 acres to 1500 was perfect for the old one farming is a business consisting on growing crops he has more tractor and combine then land to use them 😀 we aren't stupid we are honest. You never over extend for shiny paint when you don't have the acres to pay for it. Now in a few years when he wants to farm he will have to drive across the county to get land pay for the trip and the acres will be higher by then its the dumbest move he has made so far and he will admit that sooner or later
@@jwhitley101whitleyfarms9 big difference is, you dont have a large yt channel bringing money in also.
@@jackstandsandoilpans6687 you know there's always that one person that thinks they know more than everybody else if he wants to buy shiny equipment to farm his land then so be it I just don't get we're all these other people get off telling him how to run his Farm
@@bjmichelle6272 I dont care how he runs his farm.. it's his farm
Never realized how the farmer has to budget his money before. Made me appreciate my budget that is not complicated as yours. Good luck to you and your family.
Yes! And also made me appreciate the corn and soy products I use. 💙
Making business decisions, such as the bin set up is a no brainer. Then, when the next opportunity comes up, you’re set. And not stretching yourself so thin. Patience is a virtue.
Patience sure is a virtue and one of the hardest lessons I’ve learned. Thank you, Kris, for sharing this here.
Yah it's just one of those things where everything just came up at once, can't afford everything at the same time, a new combine and bin setup is quite enough to pay off for a little while and can take priority over a very expensive nice yielding farm
My boss is a financial advisor and I always send these videos to him. We both love them.
These videos are great from a person who is not a farmer. Puts our world into perspective.
I farm myself. I raise tobacco and then corn, beans and cows with my wife's grandfather. I'm only a years years older then you and I learn from these videos to kinda help me manage things. I'm not the best at it. And I don't think you should have to explain yourself to anyone on here why you do or dont buy land or something. That's a big expense and if it just dont work for yall, it dont work.
True but what if by explaining why, he gets others to question or re examine why they would have made their decision. Could prevent a lot of financial heartache in the industry.
@@paulmccallum4229 I'll just say that I agree with Kris here, It would appear that this is a three person decision here. The decision is their's and although they did ask for the feedback, the presentation was made and made sense to me. I also agree you'll always have people who "know better" even the one's that just sit at home all day. Just like the new bends, this sounds like the right way to go.
If you need an extra income, you could teach a class called “Farming for Dummies”. It’s very interesting having an understanding of how much goes into your lifestyle. 👍🏻
@Mick Mack oh they are called burdocks. Got them here too. Did not have as many when.we.had cows. Pigs also good at rooting them up.
I agree, I don't farm anything but this stuff is so interesting to me. I'm constantly telling my friends new things I learn watching the Cornstars. Like how to estimate yield from a cob of corn, how much spacing is needed to grow corn, soil depth, how dialed in the Ag Leader stuff is. Oops here I go again. Maybe I watch too much.
youtube is his income, if he had more income and put it toward the farm it would be a loan toward the farm. In the video he is saying that and there are many vids of his explaining this.
Cole, you and your family are so great to watch and learn from. you guys are so calm and collective when explaining your processes and reasoning behind the decisions you make on the farm, and to come up with a video on why you guys passed on the purchase of the farm ground at this moment, when so many others think they know what's best for your family's farm, is so great. please don't you guys ever stop doing what your doing. you have a RUclips viewer for life here...
Hey Cole!!!! Thanks for taking the time to explain your family’s choice on this land, but really bro, this is you and your family’s business and livelihood. You don’t need to explain your choices. We have nothing to lose. You on the other hand, have everything to lose. Appreciate your videos brother! Have a blessed day
Gee sounds like he might know a thing or 3 about finances, oh that’s right I think he said he has a degree in Finance from UNI.
gotta love the keyboard heros...always have better ideas
@@tetedur377 Cole did actually go to UNI, as I read an article about Cole from UNI. I went to college up the road from UNI, at Wartburg College in Waverly. UNI is also well-known and respected for their business school too (as I'm sure you know)!
Your right most of us farmer's wouldn't think of sharing a 1/4 of what you shared. You did a great job in explaining the business side.
You are teaching us to appreciate where our food comes from. As a non-farmer, I love these informational videos.
Very well done. I did engineering for 35 years and often had to do cost trade-off analysis for clients on projects so that they could see why we were making engineering recommendations. You understand the numbers and short term and long term costs, cashflow, etc. You're doing a great job and that will pay huge benefits in the following years. I understand your reasoning exactly. It's sound, and you have no reason to doubt your approach.
However, I do agree with one of the previous comments - it's better to raise up the low areas than grade everything to a lower contour. Get a civil engineer involved - that may cost you some money, but the engineer will make sure everything drains properly, and the ground will support the structures. They will probably make some recommendations that will surprise you because it was so obvious, but you didn't see what they do. Too many people think they can just push dirt around and "it will all work out" because grading is "easy." Believe me, the money spent on a good civil engineer will ensure your project works as you hope it will.
I really enjoy what an open book your operation is and the fact that you aren't afraid to share everything with us. Helps show that there is more to farming then moving dirt and planting seeds.
Forgive me if this is really naive and ignorant: Have you looked into a land swap with someone to get the adjacent farmland? For instance, do you have roughly equivalent farmland next to someone else who would want it... and who would be willing to buy your adjacent land "for you" as a trade? That way, you'd both come out on top with more adjacent land, leading to increased efficiencies... and the other person would be the one to supply all the financing. (PS- Love your channel... keep it up!)
That certainly raises some questions.
Doesn’t happen like that
That would sound like a good idea on paper
But you throw people into the mix and emotion and politics come into it and shit hits the fan
Been tried many times and either kills frendships for no deal or it ends up I court
Also doesn't make sense to ditch land of equal quality for the same quality
Efficiency of close land is a very small part of the operation
Usually if your selling land to buy land its very diffferamt and you have to survey your operation and your goals so usually you ditch lots of bad land for a little good amd hope to get more product for your cost of production or ditch a little good for alot of bad cause you think you can improve it
Our cousins sold us 3000ac of top quality ground so they could afford the lease on 10k ac of lesser quality
At the time they had quite a small operation and the good ground required a big investment on drainage that didn't make sense to them
So they sold it to lease 10k ac of ready to go land now they own amd lease nearly 100k ac combines split worked well for them
For us it came down to 2 options
We.always pick the security of owning the land even though at the time.ww could have taken the 10k ac lease without any competition and we had the know how the drain the land we bought
As.cole said in the video buying land does hamstring you a bit amd we.havent expanded as fast as the cousins but again that's as.mich personal preference as business sense cause f you don't enjoy it why do it
Running 20k ac with my dad and sister is good
Running 100k ac with 40 casual workers is my worst nightmare
@@stevenmcc2119 Sure it does, it's called a 1033 exchange and it's non taxable.
I remember when my dads farm had to be sold. Early 90’s the dairy business was not the best. Shows me how fast a farm can go under if the market for what you sell goes belly up!
Love the videos Cole. We run only 120 acres on our farm here in Wisconsin. Don't make much money but mostly doing it for my father and the farm has been in our family since the mid 1800's. Nice to learn how you do finances on a larger scale so I'm all for these types of videos. Take care and thanks again.
Daddy Cornstar is lucky to have a financial whiz kid, and dang Cole knows his stuff
Keep making all of the vids. They are all good. Also agree with others: hire a civil engineer to look at the pad/land for the new structures. I immediately thought it was incorrect when you said you would find the low point and grade to that. NO! I believe it needs to be the opposite. When putting in any structure, you want to build the land up and put in a proper pad, and that is not just moving dirt around. Remember that water settles in the low areas; therefore, you must protect against that. Don’t forget snow removal. If your pad is up higher than the surrounding land, put in a ramp on one end to facilitate snow removal. Please at least talk to a civil engineer before you do anything. Best wishes.
Yes I agree. At the very least grade the high ground into the low ground. It would still be level and above the low grade. A good excavator will help you with the decision.
Hi Cole, my family have a farm in New Zealand. The videos on the thinking behind farming decisions are my favourite to watch. Here in NZ there is quite a divide between rural and urban people. People like you who give insight into farming life are essential. Keep up the good work. Kia ora.
Cole, you've got a great head for business for a 23 or 4 year old young guy. Nice work "penciling" it all out for us. ;-) I did sit through this vid Cole....even though it was too many numbers for me...lol....I totally "got" the logical sensible reasons for making the decision that you made. Very important to keep the end game in mind and not get all emotional about the "want" . I think that's exactly what gets so many folks in financial trouble.
Cole, I think you would be a great teacher. You know how to make things easily understood. Private tutoring pays upward to $30 HR. I know you are not thinking in that direction,but you might like it, maybe in winter when things slow down..
Coming from and Ag lending background I really appreciated this video and how you look at cash flow. Also, buying equipment at year end is a common practice as to not pay taxes. Buy new equipment that makes sense while being able to depreciate a large amount in the first year. Kudos on not having intercompany debt, leads to enhanced scrutiny for future financing.
Remember, if you have the dirt, you can’t get hurt.
You are so smart Cole. Thank you for educating all of us on the importance and the intelligence you need to be a farmer in today’s USA!
I love how cole isn’t afraid to give actual number most people don’t talk about money
probably the reason why many people get into a mess with their financial stuff because it almost feels like it's sth illegal to learn about finanical stuff though it's probably the most essential part of our modern life
Cole, I love these videos. I went to college for an Accounting degree and this video made 100% sense. Some people may not look at farming as a business and I do appreciate you taking the time to explain it the audience. I wish you all the best in the upcoming years and cannot wait to see the new bin setup when it's finished! - All the best from Texas. :)
Cole as a young farmer i appreciate these videos very much. Having a very old fashion farming family I try to bring your outlook on things to my farm everyday. Please continue to make videos about how to manage money and keep the everyday farmer alive! Thanks!
Would it make sense to buy the adjacent farm yet sell one of your more outlying properties to pay for it? Adjacent property would seem easier (quicker & more efficient) to prep, plant & harvest than something 10 miles down the road? Just thinking.
Feedback : The financial side of it is in big part why I watch. I discovered this channel with the "How much money do farmers make" video (and I'm probably not the only one) I subbed and didn't leave.
Informative content is the best
Yup, same here.
Thanks Cole for being so open about the money side of farming.
Keep Smilin!
When you did the calculation of cost per acre with the new land payment, you didn't change the number of acres. You need to add the new acres to the 1,000 you are dividiing by and that will drop your cost per acre.
Good eye. I forgot to add that in!
@@ColeTheCornstar looking forward to seeing what this lil change does for you!
@@ColeTheCornstar $128 per acre would be the new overall cost then no?
@@jdias51 it would push him to $221 an acre. Which would cash flow but like he said push him past the limit of being comfortable. Good catch though!
@@joefredette7253 I forgot to add the new farm cost ahhhh lol
But the new farm most likely has houses and garages that you can rent monthly to offset some of the cost too idk if that was factored in or not
Also so if its 105k per year is that just the mortgage or with the cost of fertilizer etc too because 105 x 25 years is 2.6million which is a expensive piece of land
The economics of farming videos are my absolute favorite.
That made a lot of sense. I’m sure it was a decision that bummed you out. Is it possible to watch the price and see if it comes down to a sustainable level or is it something that will never get there? Thanks for taking the time to share your farming with us.
You're doing the right thing! I work at a CO op in Ohio and we just had a couple farmers finish right before Christmas cause of breakdowns on older machinery, compared to the guys with the new equipment they were done in the first 2 weeks of November. Always remember ground can be available at any time money isn't. Love the vids!
Cole god will bless you with more land for being an obedient servant, your father has raised you and bother in the right ways.
not telling u what to do but u might want to edit that
You’re correct with the decision to pass on the land and you did a great job explaining why. I’m 74 and there’s more farmers my age than your age. All of that land is going to become available in the future. You, and your brother, and Dad are going to be in a position to benefit, whether owning or renting. You are putting the foundation in place to be able to capitalize when the time comes. Good luck!
See, I told you the man thought this out in deep detail. Covering all his bases. It’s easy for other people to spend your money but you are the one writing out the checks. 🤟🏻
You clearly have a consultant job in the future, helping OTHER farmers who aren't as smart as you are. Keep up the good work!
I just stumbled on your channel and can’t stop watching your videos... Cole your a bright, sensible funny and charming young man.. your parents should be proud they raised a good son... you are years beyond your youth! looking forward to watching and learning more from you!
Y’all need to leave cole alone! He’s got his money figured together, not wanting to be tied up in major debt is awesome, proud of you cole keep this work up, ps. I like how you showed them up lol
That’s true, but to build a legacy one must keep growing and I believe Cole knows that. However he didn’t discuss buying just a portion of the adjacent property or even selling outer farms to finance. He’s more than likely correct (I trust his judgment), but didn’t in his vid address all the options. Which is fine, none of our business, except we’re all routing for him!!!
@@NinfaCarpentergeorgia198 I Absolutely agree with you. These are points I too would have liked to have heard him mention, I hope he does because these points are also very much a very important part of the equation.. although, it well could be that he either can't share that information about which he can say out loud if he simply can't mention something, that just can be the case, but otherwise I absolutely agree with you Ninfa Carpenter plus nobody does "attack " anyone in any way, this is a healthy and very educated conversation about finances and numbers can all be made and/or named fictional, it is just a great conversation about a everyday life topic.
@@NinfaCarpentergeorgia198 I Absolutely agree with you. These are points I too would have liked to have heard him mention, I hope he does because these points are also very much a very important part of the equation.. although, it well could be that he either can't share that information about which he can say out loud if he simply can't mention something, that just can be the case, but otherwise I absolutely agree with you Ninfa Carpenter plus nobody does "attack " anyone in any way, this is a healthy and very educated conversation about finances and numbers can all be made and/or named fictional, it is just a great conversation about a everyday life topic.
Please never stop and leave him alone!!!! Cole might be a calculator, but the more perspectives he gets, the more mistakes he can prevent or didnt even thought about. The only thing is that the comments have to be nice and not rude
I love this farm because they know what they are talking about and they are so awesome 😂
Cole, you are a smart guy and a great communicator. I am not a farmer but I think you are teaching your farming process and decisions that have short and long term impact. You are very open. Good man!
In my experience the cheapest part about a breakdown is the repair cost. Like you said its the opportunity lost, the time delays, spoiled crops ext.. You must have good equipment.
The rise then fall of farm prices in the 80's was the result of a bubble created to grab up
centennial farms that were mortgage free by getting owners to get full or partial mortgae loans to buy new farm equipment. So, many traded in their old equipment and got new. When the bubble was popped the banks that approved the deal wanted more money to secure those loans because the land was not worth as much. Many farms were lost to factory farm concerns like my friends family farm they had owned for 200+ years. So not a good example of normal farm land price stability.
WOW! You show wisdom beyond your years. You are able to separate your head from your heart, and explain it to dummies like me. Keep up your good work - I enjoy it greatly
Cole, did you consider selling some of your under-performing land and use that money to buy the higher-performing farm land? How would better crop yield effect your cash flow situation? Would the purchase make sense then?
I grew up in farm country of southern Indiana, but I am not part of a farming family. I do have a business degree, so your videos about the business of farming interest me. I found your channel because my first interest is in remodeling and renovation, including decluttering, cleaning and designing spaces. I am looking forward to your house remodel.
I am one of your "true fans". :) -- Becca Klash in Georgia
I just added a comment asking this same question and then stumbled onto your comment. I'd love to hear Cole's thoughts on this. We have a small farm with land we've had for decades. He mentions removing emotion and as I was thing about this possibility, it's hard not to let emotion creep into decisions like these.
That presumes that 1) There would be a buyer for the under-performing land and 2) that the differential in annual cash flow would justify the differential in sale vs. purchase prices.
Someone stayed awake in class.
For those who gripe about the time Cole spends in the office when DC and Cooper are in the field or shed.....THIS is why it's every bit as important.
Thanks for the break down and explanations, a lot of people don't understand that just cause you loose one thing, doesn't always mean you lost!
Face it guys, this guy knows his business. Bless.
No! Keep this type of video going, it's interesting as many of us did farm at one time. I'm passed that age now so I just watch, LOL, and and smile a lot. You young man have one great advantage, you were schooled with the numbers in mind, take advantage of it all you can. Later you can LOL or maybe ROFL! at the young ones.
Being in business (not farming) I greatly enjoy the numbers videos too. The first one was frustrating with the analogies, but totally understood how you were relating it but I also understand how others may not have connected. When I found your channel what seems like forever ago, I was attracted to what seemed an honest wholesome values and desire to share your farm. I am not saying I mean financials, but you're just an honest farmer trying to make a buck and sharing your experiences. That is how I see it and I do enjoy your channel, even it your de-authenticating you precious home, but I do understand why too. Great family. Great videos. Overall I wish you the best. Keep on filming (and farming) on....
That was a nice way of saying “ stay in your lane guys, I have a bachelors in finance”!