Let's do a P & L on this idiot's "family farm" operation for one year........actually employing just one "insurance clerk" as farm labor:
We'll start with our 100 acres and assume that it is all tillable, and the yield is perfectly consistant (it never is, but just to give him the benefit of the doubt). We'll further stipulate that the land is owned "free and clear" so there are no mortgage payments due......to further give him the benefit of the doubt.
Using corn as an example, it will cost $12,000 for herbicide, fertilizer, seed, and diesel to do the planting. To keep the equipment costs to a minimum, we'll assume that we will contract the harvest, so purchase of a combine is not required, however, a tractor (used), a disk, and a boom planting drill are needed. Again assuming used equipment, and financing the entire cost, your equipment payments will run approximately another $7,000 per year, and insurance on that equipment will run another grand. So with the planting done we have $20,000 in cost just to start.
Now comes the harvest.........lets assume the land produces 200 bushels per acre, so we end up with a total crop yield of 20,000 bushels of corn. If we use the current price on average, corn will sell for about $4.00 per bushel, so our gross revenue from the crop is $80,000. From that we have to deduct transportation, grain drying, and elevator fees, which on average will run about 5%, so our gross is now down to $79,000. We didn't buy a combine with a corn head, so the contractor will charge usually about $50.00 per acre to do the harvest ($5,000), so now our adjusted revenue is reduced to $74,000.
Of our adjusted gross revenue, we must now deduct the planting costs ($20,000), real estate taxes on the farm ($6,000), insurance ($1,000), the payments on a used pickup truck ($3,000). Our net revenue, less overhead and planting costs is now $44,000.......and so far the farmer hasn't paid himself a dime to support his family......a meager income at best, however........
Now we have to pay the "insurance clerk". Since this has to be a REAL JOB, and not just a hired hand for the planting and harvest, we have to assume that we can keep him busy for the other times in the year, so that it is considered a REAL JOB. Let's assume that we pay him $10 per hour, and work him an average of 40 hours per week. He will therefore earn $20,800, plus we will be required to contribute to his Social Security, and medicare, plus provide state-mandated unemployment and disability insurance. These will total about $5,200. Now we are too small an operation to qualify for, and provide our insurance clerk with "health insurance", so we have to add in the $2,000 fine mandated in ObamaCare, Our personnel expense is now $28,000.
After deducting the personnel expense from net revenue, the poor farmer is now left with a whopping $16,000 to live on......raise his family, buy gas and insurance for his pickup, pay to heat his home, purchase clothing and food for himself and his dependents.........$16,000.......(he can make more than that as a WalMart greeter)
The good news is, that he will qualify for food stamps, Medicaid, and welfare, so he won't starve......
Curtis, (I know you are lurking)........this is the reason that farms have gotten larger and larger.......in order for economies of scale and efficiency to make it worthwhile to do.........if it ever reaches the point where it doesn't make sense for the farmer to do it, assholes like you are going to starve to death.......so take your "ideas", and FOAD.....
doc