Don’t be intimidated by stories of mega farms

Imagine a farm that orders 40 of the largest John Deere combines complete with headers at a cost of $1.3 million each. Pretty big farm, eh?

Well, according to people who rent land to this large southern Saskatchewan based farm operation, that’s the combine order for the coming year. Forty combines at 4,000 acres per combine would suggest a farm in the range of 160,000 acres.

The story hasn’t been verified, but people like talking about it and marveling at the magnitude. Some despair over the growth of mega farms, saying it kills rural communities. Others say we shouldn’t stand in the way of business, growth and efficiency.

Farms have always consolidated and increased in size, but the move to mega farms seems to be accelerating. Having a few hundred very large grain farms dominate Western Canada seems much more plausible than just a few years ago.

Observers talk about the demise of the medium-sized operations that used to dominate agriculture. Statistics show large farms are becoming more prevalent as are small farms. Small start-up farms find a place in direct-to-consumer markets, agri-tourism and various niche ventures, but not usually in grain production.

Certainly, many existing small and medium grain operations could be called twilight farms. When the current generation can no longer farm the land, there isn’t another generation to take over.

The land may not be sold, not by this generation and perhaps not even the next, but the land will be rented and often it will go to a mega farm or a farm aspiring to the mega category.

Personally, I’m not yet ready to write the eulogy for the mid-sized grain farm. Some pundits suggest a grain farm needs to be at least 5,000 acres to support a family and be viable. When the land and equipment is paid for, I believe a farm less than half that size can be sustainable. You aren’t buying any $1.3 million combines, but your family doesn’t have to lack for much.

Farmers are a stubborn lot, soldiering on through good times and bad. The stubbornness is often passed along to the next generation. It may make economic sense to rent the land, take the rental income and do something else with your life, but the desire to farm can run deep.

For the past 30 years, land has appreciated in value and there’s no reason to believe that’s going to change any time soon. Selling even a moderate acreage generates an amazing nest egg, but once a family sells its land, it’s gone forever.

More mega farms will emerge and their equipment complement and land base will continue to amaze onlookers, but moderately-sized operations will endure for decades and hopefully generations to come.

If you’re not part of a mega farm, you might admire them; you might despise them or you might do a bit of both. Whatever your opinion, keep your eyes on your own economic and family situation.

Are you profitable? Are you continuing to advance your agronomy and marketing? Do you enjoy what your doing? Is the lifestyle good for you and your family?

If the answers to these questions are yes, it doesn’t really matter what the mega farms are doing. Don’t be intimidated by pundits claiming your farm is irrelevant. You might not be at the top of the list for new combine demos, but there are lots of used combines that still have a lot of life left in them.