Read time: 5-7 minutes
Why Not “The Full-Time” Farmer?
First off, happy belated Father’s Day to all the dads out there! Being a dad is a full-time job and the most important one you’ll ever have.
Second, this is my first email, so thank you to everyone who signed up for the newsletter. This is an opportunity for me to give you an inside look at how we run our farm and share our experiences and lessons learned along the way.
Why Not Become a Full-Time Farmer?
Farming is more than just a job; it’s a lifestyle. While the idea of farming full-time is appealing, there are several financial and practical reasons why many of us choose to work part-time.
The Financial Reality of Full-Time Farming
To support yourself solely through farming, you need a substantial income, especially when considering taxes, retirement savings, 401(k) contributions, social security, and other expenses. Let’s say, for example, you want to bring home $100,000 per year:
- Net Income Goal: $100,000
- Profit Margin: This is how much we make after expenses. Approximately 25% across all enterprises (chickens, cattle, pigs, turkeys, etc.). This is a ballpark estimate and can vary greatly.
To put it simply, if I want to take home $100,000 a year, I need to earn much more than that before expenses. With a profit margin of 25%, I would need to generate about $400,000 in total sales to end up with $100,000 after covering all the costs.
We hit just shy of $150,000 on our farm last year, and it nearly killed me. We weren’t happy and I’d say it took something I loved and made it something I didn’t enjoy as much anymore, to put it lightly.
Understanding Profit Margins
Profit margins in farming can be a moving target. For example, when selling a pig (assuming you’re buying weaned piglets), here’s a rough breakdown of costs:
- Piglet: $100
- Feed: $225 (This can vary based on whether you use non-GMO, organic, or natural forage)
- Processing: $350
- Labor: Variable
With these costs, we make about $1,300 per pig based on current pricing and selling every cut received (that’s hard to do). That means the profit per pig is approximately $325.
To achieve a net income of $100,000 solely from pig farming, we would need to sell around 308 pigs per year. This accounts for the costs and profit margins involved, ensuring we reach our income goal after expenses.
Considering Start-Up Costs
Starting a farm involves significant initial expenses that aren’t included in the ongoing costs. These start-up costs can include fencing, infrastructure, equipment, and more. While these items become assets and depreciate over time, they represent a substantial upfront investment. For example:
- Fencing: Essential for managing livestock, fencing can be a significant expense depending on the size of your farm and the type of animals you raise.
- Infrastructure: Barns, shelters, and storage facilities are crucial for protecting your animals and equipment.
- Equipment: Tractors, feeders, water systems, and other tools are necessary for efficient farm management.
These investments are necessary to get your farm up and running, but they also add to the financial burden of starting and maintaining a farming operation.
Why Part-Time Works for Us
By farming part-time, I balance the best of both worlds. Here’s why it works for me:
- Flexibility: I can spend more time with my family and pursue other interests while still engaging in the farming lifestyle I love.
- Financial Security: Maintaining a part-time farm alongside a W-2 job provides financial stability. If one source of income falters, I have the other to fall back on.
- Sustainable Growth: Part-time farming allows for gradual, manageable growth without the pressure of sustaining a full-time income solely from the farm.
- Quality of Life: Farming part-time reduces stress and burnout, making the farming experience more enjoyable and sustainable in the long term.
Being a part-time farmer means I can share my journey, mistakes, and how-tos with you without the overwhelming pressure of making it my sole income. It’s a balanced, fulfilling lifestyle that many of us cherish.
Again, thank you for signing up and following along. Let me know your thoughts on part-time vs. full-time farming. What’s working for you or what are you planning? Happy farming and have an awesome week!