Posted 12/21/2024 17:40 (#11020429 - in reply to #11020403) Subject: RE: Farming, government payments and return on equity
East Arkansas
I’m not saying I Havnt had good years I’m just saying this year isn’t a good one. Been at this on my own for 20 plus years. The good years were when I had much less equity and could get a return on equity of 15% plus. Don’t owe as much anymore and the return to equity was less than 5%.
My point is farmers with 10-20 million in equity should have positive returns in equity. Businesses outside Ag would be changing a lot faster than we are if the returns were this low.
This is rough even on established farm businesses, a local banker was telling me the numbers from this past year are as bad as he’s ever seen.
Farming, government payments and return on equity
