Why Small Farms Fail
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- Опубликовано: 8 апр 2023
- Why do so many small farms fail and go out of business?
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You forgot the biggest and most important reason you succeed in your small farm.
Having a spouse with the same Passion
You nailed it, Pete. As a small farm in north central Maine, we struggle big time with burnout and lack of capital to expand. We have to work in carpentry all winter, just to fund the start of farm season in spring. We have no savings, no retirement plan.. we're basically going to have to just farm until we die. Hoping our RUclips channel takes off someday, but not putting all our eggs in this crazy basket! BUT, we're so proud to be doing our small part to decentralize the food supply, at least in our community.. I think the future will be propped up by small community farms, and we feel blessed to be a part of that.. Thanks for bringing awareness to the struggle, it's VERY real. Support your local farmers, folks!! 💚
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Just came across your comment. You guys are doing something similar to what we are working towards right now. We are still in the phase of learning skills and gardening / raising chickens on our .8 acre. I subscribed to your channel to help you guys out. There isn't many of us, we need to help each other out when we can!
@@tylerk9455 thanks so much Ty 🙏. Keep fighting the good fight. It's worth every last bit of turmoil!
Subscribed to your channel !
@@maheshwaranparamasivan5177 Aw, thanks so much!
Your so right . I’ve been raising cattle beef cattle (feeders) for 42 years . I’m 72 years old an biggest thing I learnt was my input cost ! Buying good used equipment you can control what you buy what you pay . I love what I do which is a big asset too me . Raising 20 head of cattle every year which again at 72 years old I’m thankful I can still do it . I borrowed very little money when I started an was fortunate too borrow equipment from farmers in return of helping them out . But that was back in 1980. There’s very if no farms very close now days too barter with others . Watching input is a hug part with a little luck an hard work yes you can make a Buck . Get rich lol . Good message here Pete you got wisdom I’d like too know you personally . From Mac A Do Farms in Broome county
We started off small. We plan to keep it small. We started off growing for ourselves. I had 2 greenhouses to start. I took advice from my twin and her husband, advice from older relatives who have been doing it all their lives. You do have to consider how much raising various animals are going to cost. Shelter. Your monthly bills. Your earnings. I bought 4 hens with portable housings, then I bought 4 more. It worked fine, then various older farmers bought me hens, even food to feed them. He really wanted to help. Last year we. Bought pigs, a few cows, we not trying to rush it. 4 heifers, 2 bulls. We will see how that goes. But we have ducks, a few goats, a lot fruit trees. We are growing a lot of vegetables for our own use. We clear more land each year. Selling a lot of trees help pay the land taxes. We attend auctions, buy farm equipment, ECT. Plus we go to meetings,meet other farmers who are selling, and producing less. Cutting back.some are getting older want sell off equipment. That's good. Even when you have children, there's no guarantee they want to do what you do. We are still learning, unlike my twin,her husband we don't call our selves a big farm, just a tiny one where we grow and produce mainly for ourselves. Because things are so tricky now. I think keeping it small is best, don't overthink it, it's best to under estimate than over estimate. We own the land. Our house is paid for. Yes it's hard work, but if you were born into it, you pretty much know what you are getting into. I have a lot raised garden beds. I use them a lot myself, used the old hay to protect my raised beds. We watch others like you, talk to uncles,. grand parents who have been farming and gardening all of their lives. So we have been keeping it small for about 5 years and that's ok. We can eat the animals, and the other things we grow. We not looking to get rich, but we also want to be able to manage what we have, not go into debt. We do appreciate your channel Pete.👍👌. I've learned a lot by watching others, listening, not criticizing others if they do it differently. team work, I help my husband. He gets up before 5. I have to multitask. This is the life we chose. No need to complain.😅 God Bless you and Hillary and your family
Love, respect and positivity always. Happy Easter. Vee, Andrew and Family.✌️🕯️✨💕🙂👋👣
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A lot of words but no clear message here…
The message was. Start off. Small don't take on more than you can handle. Was that too hard for you to understand.?. Ignorant is bliss. Knowledge is powerful. There's always a smart ass in the bunch. Those my words not my wife's.🙄. Andrew.✌️🖖🙏👏
@@veedejames721 what’s being smartass? It’s a lot of words that could probably be compressed down.. is that too hard to understand?
Gave up animal farming after only 8 years. Mostly because I could never leave, can't find people who are willing to take on the chores even for a short time especially after they have done it once or twice before. Changed from animal based to Tree Based. Started with Christmas Trees and moved up to the Wholesale fruit and shade trees. Got my freedom back and made way more money than I would have. About 1/4 of the work and time investment which then freed up time to invest in other ventures !
Not much money to be had in animals anymore, my father has taken to raising hey in the past few decades, the farm might actually turn profitable if he stopped raising cows. 😅
pete, when i was ten i worked on a small ranch near victorville CA. I got paid 50 centsl per day on weekends when in school and then weekly during the summer. The rancher gave us eggs, veggies from his garden and milk from his cows to take home. It was an alfalfa farm of 900 acres. I changed irrigation lines by hand several times a day, learned to drive a tractor a pickup and a windrower and baler, i stuck my foot with a hay fork once and learned a lot of other things....one of the best jobs I ever had. And I will never forget the Hartmans' and their sons who worked so hard.
I grew up on a dairy and hog farm in Wisconsin. My dad milked cows day and night for 358 days a year. He took off one week a year to vacation and get off of the farm. I am sure that he had burnout but there was no other choice but to slog through the seasons and continue on. He was a tough man for sure and my mom was right there by his side working just as hard. It's a tough life for sure.
There was a time in history when hunting and foraging consumed all your day with so little time for knowledge and science advancement, but farmers changed all that.
I totally get what you are saying. I did go to college but for studies that was incorporated back into the farm. I don't know what will happen when I get to my parents' age. I just pray I'm in just as good of shape that they are in.
My Dad had a small country store , he sold drinks groceries on a small scale, he made cold hot sandwiches. He failed after 5 yrs, when I got older I asked him what happened with the store? He simply told me people will drive 15 miles to town to save 50cents on a loaf of bread.....
Probably , people buy bunch of other stuff each saving 25 to 50 cents. People don't just buy a loaf of bread driving 15 miles. They buy stuff for the entire week and save the money that would have been your dad's profit ( and funds for your education ) .
My parents also had a country grocery store when I was growing up. My dad sold to people on credit & gave them good deals on food especially because he knew they needed to feed their families, then when food stamps came out, they passed by our store driving 25 miles to town to spend them, but came back to our store to get the things you couldn’t buy with food stamps on credit. They just couldn’t understand why he closed the store.
Right, spend $20 on guess to save $20. Just buy local and support your community.
This is why I like dogs better. They're loyal.
Walmarts sells everything cheaper and they started the mom and pop store decline!
I grew up in the suburbs and fell in love with farming when I moved to upstate NY. I have spent the last 10 years building a small farm of my own. Your right on with high capital requirements. I am lucky in the fact that I have a good outside job. When I first started, I pictured the whole family out working together and at first it did work like that. I have five children, all love animals but I am lucky if I have one kid helping now. It's taken me years to accumulate the equipment and land I need and chase my dreams, we now keep about thirty sheep and have been working into a small hay operation to feed our own animals and sell some. I have never had a more frustrating but satisfying job in my life or one that requires so much from its owners. There have been days I literally have a meltdown in the field over broken equipment or an error I made that was preventable, however I wouldn't choose any other way to spend my days. I'm lucky that in the past five years a neighbor that was a dairy farmer his whole life has taken me under his wing and been helpful and understanding that I am still learning, he's been able to teach me not only on the farm but with life lessons I will carry forever.
Hey there fellow Sheppard 👋
Also run a side farm whit about 30 sheep. Its a weird calling but the smell of baby lambs and the sound of content munching sheep is something that life would be less whitout...
Absolutely true. The farm was called by our family name for 2 decades after Dad passed, and Mom sold out.
Small towns are a click.
I wasn't related to anyone other than siblings, but we were surrounded by people who were related to each other.
Dad held on to the 1950s into the 70s.
Neighbors worked together, and showed up unasked when there were problems.
Enough said. Thank you Pete.
This is one of the things I love about your channel Mr. Pete. You show people the good and the bad in small farming. When a sow lays on some of her piglets, you show it. When a cow dies, you show it. When a tractor or other piece of equipment breaks down you show it. There are small farming or homesteading channels out there today that make good money selling a fairytale to those wanting to get in to farming. They present a Norman Rockwell picture where all livestock grows and thrives and all crops are a bumper crop. They also talk about how much money they made farming without taking into account what it cost them to farm. I used to be a small tobacco farmer. I can tell you about good crops I made. I can also tell you about wet years when the tobacco drowned, losing a barn of tobacco to a barn fire, droughts, the rising costs of labor and the scarcity of local labor ect. I once sold a barn of tobacco for 1200.00 and when I got home, I had 900.00 worth of propane bills in the mailbox. I love small farming but you have to go into it in a realistic way. I hope you and your family have a happy Easter!
We cut our expenses, paid off most everything, changed our lifestyle, and now we homestead , learning the craft for a few years. My husband still works but we look forward to growth!
This is awesome.
I think you tube is one of the best things that has happened in the last 10 years. Who would have thought that you could have revenue coming in to help your business run just from filming your everyday life and putting it out there for people to watch. Lots of negatives to the Internet but this is truly one of the positives. Thanks for the video. All the best 🇬🇧.
Your old tractors are key too. people spend too much buying shiny new equipment to set up which puts them at a disadvantage before they start
Yes to all your points. I have a 56 acre farm that we’ve been building up for the last 5 years. Working outside the farm to make money for capital investments makes it incredibly difficult to get anything done on the farm agriculturally. But with perseverance and hard work we’re beginning to see the fruits of our labors.
Having had a big dairy farm for 38 years and now an angus cow/calf farm, I found out a no fail method to make money in both cases… DONT SPEND ANY! All your points are valid. Farming is for the strong hearted. It has changed a lot since 1979. I can’t say we have ever made good money. The big dairy required accountants, feed managers, monthly veterinarian and emergency veterinarians, attorneys … the list is long! Never a day off in all those years. We raised 11 children. How did we do it? Gosh, I don’t know.. How we do this? Still don’t know. We are in our 60’s, take one day at a time and trust in a power greater than ourselves. Great presentation
The model that you represent is difficult to emulate. A high percentage of small businesses fail in the first five years. As you point out, reality and expectations are not always aligned. Not only must there be a willingness to work hard but, as you point out, there must be a business plan and knowledge of how you will generate cash. A couple of generations ago the dumb son went into farming, the other children were off to college or at least the city. That certainly isn’t true anymore. Think of all the skills that Pete has. Not many can replicate those skills.
Could not agree more. Great thoughts. 👍
Are you all listening to Pete’s wonderful advice?
I agree you gotta have a structure and cash flow for any type of business and the hard work you gotta invest into in the beginning.
It wasn't the dumb one that got the farm but rather the oldest surviving son. All the other children knew they would have to make their own way in life. This system is part of the reason why the Catholic Church use to get plenty of recruits for convents and monasteries, they were parachute jobs for those who could not find employment elsewhere. am certain some people joined the church as their first choice, I am also just as certain Church recruitment went down after world war II when mechanization resulted in fewer farm children being born.
@@tsiefhtes while I can’t argue that what you are saying isn’t applicable, or even historical, my world was Protestant and actually vocally anti-Catholic. And yes by the 1960’s the son who had limited options got the farm.
Unfortunately, most people's "business plan" for making a million dollars, is starting with 2 million dollars...and before you know it, they are "successful" and have a million dollars...left...maybe. Keep up the good work, I always enjoy your thoughtfulness.
Health, luck and strong will. Very hard to keep a small farm going with out another income coming in. My hats off to you Pete. 45 acres is very small to generate income and big enough to work your self to exhaustion.
You said it. 👍
So true! Only a real farmer knows that !
My wife and I just had a conversation about this over dinner tonight. We just shipped our first beef cattle to the butcher today for direct to consumer sales. She would like to scale up and get started with chickens, but we settled on waiting a year or so. Get our feet under us with one endeavor before adding another
2 years ago I moved my family to a small town of 1200 in the midst of farming country. It certainly is it's own dynamic which I don't think some people are ready for.
I can’t get enough of this channel with all the great info on all aspects of the farm life!! Keep it up pete👍🏼
Have you ever worked on a farm or are you an avid farmer?
We have 5 acres and everything you said is on target. We have 3 children that did 4-H and FFA. It's a good lesson to learn were the food comes from and the hard work it takes. It's disappointing that our society sees only the pretty package in the supermarket.
well, our society will get some reality check at some point
14:55 As Pete wraps up this appreciated video, a pig poops in the background to the right - adding to the story that one has to put up with a lot of poop when running a small farm!
We here in the Fl "panhandle" have an analog to your farmer's story: When asked why he didn't play the Lottery, the ol' farmer sed: "Well, it wouldn't do ME any good (to win the lottery) cuz' I'd just farm 'till it was gone, anyhow...." BTW Pete....don't "let up" on the "Dad Jokes" (I'm a father...)
My husband and I moved back after college started our own cattle herd 4 years ago - up to 65 now. We grew up where we live now and we are still outsiders! lol Or it definitely feels that way. We do rotational grazing, work fulltime "city" jobs, and I run a lot of the business side of the cattle (as a female). People are ALWAYS nice but it feels like we are the odd ducks on the block somedays because we don't fit the norm for this area. Thank you, Pete. I always enjoy your channel.
Excellent advice, not only for farms, but for any business. It takes a lot of sacrifice.
Well said. Raising kids is also lot of effort, that very few can estimate appropriately
Pete I always look forward to the accurate information you give out. My experience from a City Boy that moved to the country was that I always liked the outdoors and the farm part I was intruduced to it by my Father In Law. It was always very enjoyable from the beginning because I didn't have to depend on it for any income, so it was just actually a hobby. The part I enjoyed the most was of course was seeing the newborn calves born each season. The bad part for me was when I lost my Father In Law and he was the brains of the operation and did the majority of the work. Slowly after the burnout began and I eventually sold my few Cows. I still enjoy living out and may in the future get more Cows, but I don't miss the hard work especially in the winter. I have always said, Farmers are some on the smartest and hardest people in the world, MUCH RESPECT IS DUE.
Great video! If I may, I'll mention that scaling up slowly is so important. There are so many beginning farmers that look at where others are and can't wait to get there. So, they exhaust themselves financially, physically, and even mentally trying to get to this idealized place where they think success resides. Slow and steady is generally best. Thanks Pete, and Happy Easter!
Great point!
Yep, be the tortoise, not the hare. Because every time I read the book, the tortoise wins in the end.
That's right, building and developing a family farm is not easy for those who like haste.
This is how I have grown my business. Low and slow. I have not financed any equipment. I could have gone out and financed 50k worth of equipment and it would have made my job a whooooole lot easier. But I wouldn't have made it this far because I would not have been able to pay the loan back. Now in my 4th year things are starting to roll downhill a little easier and I can see growth happening a little quicker.
This is a very important point, in the age of entertainment is our reality, anything about starting a business is not entertaining
We enjoyed your small farm chat, (which, by definition, was a bit depressing) but we have a suggestion for a future: post- use the same checklist on the positive side - the reasons why small farms succeed - with details please. For example, you mentioned needing capital: What for? I can guess, (seed, animal food, maintenance on farm equipment,) but I know there is much more I'm not thinking about. Providing details helps to visualize, not only for potential small farmers, but for the rest of us, so we understand your costs and the cost of your food at market. Related is a question about personal expenses, like health insurance? Are there small farmer policies available or do you carry it through your first vocation? You have amazing skills that will bring you a retiree income. This should be part of your advice to young people who have trouble seeing what it will be like when muscles are tired 20 years from now. And last, marketing: Are there ways to market your products more than you are currently doing, especially considering the competition you say you face in your farm community?
Thank you Pete. After reading "The Richest Man in Babylon" over 45 years ago. I held on to the concept of 10% for your take-home pay for your retirement savings/investments. Always pay yourself first. 20 % of your take-home pay for saving for things you need to buy. Repairs, cars, appliances, DEBT, etc. Then, 70% of your take-home pay for living expenses. Works for me.
"How many missed paychecks are you away from being homeless? "" is a big driver in my life.
Thank you for all you do Pete and Hilary Larson! You have the very best channel. Welcome any time.
Cheers, Chuck in Jensen Beach Florida.
Hey Pete, I attended a state training on developing nutrient management plans at Cornell this past week, and one of the lead presenters mentioned a group of folks on youtube popularizing making small-scale farming with animals on pasture work. You weren't mentioned by name, but I'm sure he was thinking of you. I mostly work with CAFO farms but believe you are doing an immense good by doing what you do. Keep it up!
I am so glad you decided to start a RUclips channel. I appreciate the way you share the things you do, also your interactions with your family and your animals. 👍🙂
Watching Pete complete the farm work always excites my brother and I. The way he shares is also amazing.
The small farm we own in new york state is a part of my income but the farm and its zoning has allowed me to run my other businesses out of the farm .I run several small businesses from/on the farm that add up to an income .What you stated about small farms also plays into any business.What we are facing with our businesses is the massive inflation ,it is making things difficult.And i do not see things getting better any time soon.
Thank you Pete for the video, everything you said was so true. All I would say to anyone starting and reading this comment is don’t be afraid to fail because fear will find every reason to steer you away from trying
I have always heard that marketing is the number one thing that people have to do on a small farm and that most farmers are not good at it.
I agree. Intentional marketing is a mystery to lots of folks.
Very good video Pete on a very important topic. I think you also missed one important point which is that most young people starting a farm are in the same phase of their life as starting a small family. Raising kids, learning to run a business farming and keeping a healthy relationship with your spouse is almost an impossible endeavor if not approached with open eyes and an open heart. AND the energy left over after a long day of hard labour serving your business is not always enough to cater to that. The longing to belong to something larger than yourself and connect to nature drives us into this, but a strained family situation where one parent is taking the whole load of raising kids while the other is trying to run a farm business is sure to kick us out of it just as quickly. This is especially true for those first generation farmers who have decided to relocate in order to find their dream and often leave their own family and supportive network behind. So yeah, money is surely a big factor but I think on a more personal level when a farm starts eating away at family relationships might be the final straw. Great video again Pete. Thanks for being the face and voice of many of us small farmers out there trying to put this great puzzle together. ❤️
Hey pete Hope you are well Happy Easter to you and your family and everyone in the chat🐰❤️Lots off Love from Dublin Ireland🇮🇪❤️
Really appreciate you. A setup for success. I am into homesteading and maybe someday going into a small farm…we only have 4 acres so it probably won’t turn into a larger enterprise🤙
Excellent advice. I've been small farming for about 30 years now and have seen many of the things you mentioned. One thing I've noticed as another reason for failure is lack of skills. You can't afford to hire everything out. Buildings and equipment need maintenance and repair, as do the animals. I've kept the size at what I can do without hired help. I do most of my own repairs on everything. As you said, it's a lot of work, but rewarding work. Thanks for shedding light on a part of farming that get short shrift.
Happy Easter Pete, great video. This type of information is very helpful. Thank you.
Hey Pete!
Happy Easter brother. Love from Germany🤝 You’re an inspiration on growing and sustaining yourself in the World. Our Food Market is getting more and more saturated with 💉s in our meats and it’s time to raise our own.. Thank you for your guidance!
Happy Easter mate, interesting topic. Enjoyed it.
Thank you Pete love your videos happy Easter to yourself and Hillery and the family
Happy Easter Pete, to you and your family.
Such and interesting video Pete. Thank you.
Happy Easter Pete And Family.
Thank you for your knowledge! Happy Easter!
Great information Pete! I hope you guys have a happy Easter!
Hey Pete, love the channel, thanks for the video
Happy Easter Pete.
Thank for posting this video. Hope you and the family have wonderful holiday.
Thanks Pete. Lots of good information to think about. Happy Easter
Great explanation pete thanks for sharing have a happy Easter god bless
Great video Pete and Happy Easter to you and your wife.
Thanks for another video, Pete! Happy Easter to you and your family!
Great Video Thanks Pete!! Happy Easter 👍👍
Happy Easter to you and Hillary . I very much appreciate you sharing your life with us Blessings to you all
Wise info and advice. Have a Happy
Easter
Great analysis Pete!
Pete, I trust You and Hillary have a very Happy Easter. I enjoyed the video today, as I myself have seen way to many small farms here in Southern Ohio go away. I remember as a kid going to the local feed mill which was almost a full farm store. The same feed mill today, is nothing like it once was. Things are palletized for large farm purchases. Gone are the Saturday morning meetings where the World's problems were solved by old farmers.
Thanks for the video Pete 👍
Thank you for this video Pete. Happy Easter.
This was one of your best video. Good advice is always priceless. Thank you !
Good on you Pete for sharing what going on and what your thoughts are about things , keep up the good work there
Love the frank advice on small farm Sundays. Thanks for the wisdom...
Good video. Thank you. Happy Easter.
Sound, level advice! A very Happy Easter to you and yours!
Good morning Pete, and Happy Easter 🎉
Happy Easter Pete to you and your family! Keep the great videos coming! Have a good day!😘
You hit the nail on the head with all your points. Happy Easter
Thanks Pete, this is really enriching
Thanks for the wisdom Pete.
Great video once again! Yes the video was very helpfully and one of the reasons why I love your channel. I've watched your channel for a few years now and your small farm business breakdown videos have been unbelievably helpfully to our small farm and the start of our youtube channel! Thanks again Pete and Hillary Happy Easter!
Happy Easter Pete. Looks like you have your Sunday go to meetin' duds on this morning. Blessings.
Happy Easter Pete to you and your family 🐰
Happy Easter to you and your family. Another video full of wisdom.
Happy Easter! Loved listening to you Pete
I am an instructor with a farm training program in Texas, and we primarily work with people running a small farm or plan to start one. The business plan plan is generally is the area most people seem to have troubles with. There's no business plan, no timelines, no marketing plan, no financial plan. They come in with those altruistic reasons (I was no different) and burn out quickly as the hemorrhage money and time with no viable plan in place to generate adequate revenue. Likewise, most people just getting started want to bite off way more than they can chew and grow & raise everything, resulting in getting spread too thin, too fast, and never getting good at any one enterprise area.
We work with people through a series of weekly farm planning projects - done in the context of a business plan and they force the students to consider and plan for a wide array of variables. The idea is to have a good plan to guide them through farm start-up and/or expansion of their existing farm/homesteading operation.
As always-- you have done a very good analysis -- this time of the small farm industry.
Thank you for your honesty
Excellent video Pete. Thanks for the insight and for providing information that most of us are not familiar with. Happy Easter to you and the family as well!
Thank you I enjoy watching very informative .
Pete you are wise, eloquent and so generous. Please please continue.
Pete Hillary and family, happy Easter to you and your family, I enjoy watching you doing your farm chores enjoy how you are always smiling and enjoy what you do. Thank you so much for making the videos very educational and always puts in better way the way farm life should be thank you
Hope you and your family had a Happy Easter. Thank you Pete for the insight of the ups and downs of a small business.
Thank you for sharing your farming experience with us.
Thank you for this video! I’m trying to insure ours is around awhile.
Happy Easter Pete, thank you for providing the interesting content! Please enjoy this day, and say hello to Hillary. I truly enjoy my "visits" to your farm.
Thank you for another enjoyable, interesting and thought provoking video.
I’m glad to see a video like this, I really admire what you do and I have gotten countless opportunities to adjust my operations based on things I have learned from you, like you said this type of farming is not main stream so finding a role model in your space can be challenging and I am glad to have stumbled upon your channel a year ago. I grew up farming and bought my own farm 6 years ago doing very similar things to what you do and all your points are bang on. I don’t comment ever but I do appreciate your efforts!
Really enjoyed this video. So much wisdom.
Great buss advice. Thank you for sharing with others.
Good words of wisdom Pete. Thanks for taking time to share your thoughts.
Pete you have some great stuff! You share a lot of wisdom, and seem to find very interesting ways to do it. I have taken a lot of what you have to say and how you run your farm and applied it what we are doing here! Keep it up you are much appreciated!
Plenty of great advice there. Nicely done
Thanks for the video Pete. Enjoyed it very much.
A sense of reality farming. Ageing is always an issue: Farmer, tractor's.farming equipment, the barns, roofs, water supply, storage and the farm animals.
Great educational video!
Your thoughts and insights about the business of really any endeavor is very needed by anyone thinking about jumping into the pool keep putting out the info maybe someone struggling will be helped 👍👍
Thank you Pete!