Can I Become Rich Through Farming?
Many people want to know whether they can become wealthy and successful through farming business. Because they see farmers as poor people who live in rural areas, they want to know if farmers can become rich and whether the wealth can be acquired through agribusiness. Well, I’m here to reveal five basic truths about this important question.
—-» 1. Farmers are rich in necessities, I mean basic things that make life comfortable but if you are thinking about building mansions and castles in the most expensive cities of the world, the answer is NO, farmers are not rich.
—-» 2. Though you come across farmers who have thousand of dollars going through their hands annually but in reality this huge fund is all about spending and investing not luxury. For instance, many farmers rent the farmlands they use. They spend money acquiring farm equipment, brood stock, farm structures and other inputs. The total worth of investment on ground may run in millions yet when you subtract their liabilities from the assets, you will discover that majority of farmers are pretty middle-class.
—-» 3. Many are of the opinion that most farmers do not make much money because they don’t invest huge capitals except funds gotten from loans. You should also understand that if a farm runs at a loss of 10%, a poultry farmer that invests $100,000 loses $10,000 while another one who invests $10,000 loses only $1000.
—-» 4. So Are Farmers Rich? This boils down to your definition of wealth. Farmers may not have the expensive mansions and flashy cars but they understand the pride in dignity. They work hard for what they earn and help keep the exploding human population alive. From the same fish farm, you can make big money during a good year and still incur great losses in another year that runs bad. You cannot say a farmer is rich or poor judging from the outcome of a year. Agricultural businesses need long term considerations in feasibility planning and performance evaluation.
—-» 5. Cultivating the habit of consistent saving, developing business plans and careful budgeting is what can ensure decent returns from your agric investment. The truth is you can never determine if a farmer is rich or not by just looking at his balance sheet.