The Costs of Farming

Farmers play an important role in America. They grow crops and raise livestock that are used to feed people all around the country and even in some places around the world.

However, there are many costs that are involved with farming. For instance, farmers must purchase livestock, feed, equipment, fuel, seeds, pesticides, and fertilizers. Some farmers hire workers to help with day to day operations. These items alone are a large investment that the farmer makes.

Farming is a major gamble. The farmer could either have a prosperous year or he could lose his investment. One factor that hangs in the balance is the weather. If the growing season is too harsh, the crops will not have a good yield. But, if the growing season is ideal, the farmer would make a decent return on his investment. There is no guarantee as to what will happen.

A majority of farmers do not have a job outside of the farm. They depend upon farming to produce the revenue necessary to support the members of their family. Therefore, they are giving up a steady and predictable source of income from an outside source.

After seeing how many costs are involved with farming, why do you think that farmers continue to invest large sums of money when a return on their investment is not guaranteed?

http://www.ers.usda.gov/briefing/farmincome/data/va_t1.htm