Mostly fake news, but a mixture of truth, distorted to create fear porn.
So I'm not a farmer, but I work with tons of them. I've asked them this question a lot, and I'll see if I can explain without butchering it. I could be wrong on this.
So, Farmers are at the mercy of market prices. The feed corn they plant today worth say 5/bushel, may only be worth 3/bushel when harvest is done, the dryers are running, and they're ready to sell. The problem comes in when all is said and done, it cost them 3.50/bushel to harvest. When you do 30,000 bushels, that can screw you bad. Now do 300,000 bushels, or drop the market price to 2/bushel.
So farmers get crop insurance. What that does is cover them for losses. The insurance may say, ok, you estimate your cost is 3.55 per bushel, so we'll cover any difference IF the market is under, so you can make cost.
This is a gross simplification, and there are lots of factors, but farmers do have some financial backing to cover them to a degree.
Like any business though, they have to be smart with investments, new equipment, seed, etc.
I know a guy with 5,000 acres, and they are in dangerous waters trying to grow, not too fast so they don't go under.
I also know a guy who runs only 250 acres, traditional methods, smart thinking, who has a lake house, Florida home, kids have full rides in college, NICE cars, etc.
I also know some Amish, most financially stable people I know, but some have a hard life.
Mostly fake news, but a mixture of truth, distorted to create fear porn.
So I'm not a farmer, but I work with tons of them. I've asked them this question a lot, and I'll see if I can explain without butchering it. I could be wrong on this.
So, Farmers are at the mercy of market prices. The feed corn they plant today worth say 5/bushel, may only be worth 3/bushel when harvest is done, the dryers are running, and they're ready to sell. The problem comes in when all is said and done, it cost them 3.50/bushel to harvest. When you do 30,000 bushels, that can screw you bad. Now do 300,000 bushels, or drop the market price to 2/bushel.
So farmers get crop insurance. What that does is cover them for losses. The insurance may say, ok, you estimate your cost is 3.55 per bushel, so we'll cover any difference IF the market is under, so you can make cost.
This is a gross simplification, and there are lots of factors, but farmers do have some financial backing to cover them to a degree.
Like any business though, they have to be smart with investments, new equipment, seed, etc.
I know a guy with 5,000 acres, and they are in dangerous waters trying to grow, not too fast so they don't go under.
I also know a guy who runs only 250 acres, traditional methods, smart thinking, who has a lake house, Florida home, kids have full rides in college, NICE cars, etc.
I also know some Amish, most financially stable people I know, but some have a hard life.
None of them are destroying crops.