Tag Archives: wages

Parity? Not a chance in Farming

It’s not hard to understand why most young people have no interest in farming as a career.  Low wages, working conditions can be brutal at times (weather related or dangerous), and very low return on investment coupled with high financial risk.  Not a good combination.  The average age of principle operators continues to rise and is now over 58 years old – a time when many in other sectors are planning retirement.  However, the young people who are starting up do seem to work smarter and not harder with the result being a more balanced family/work lifestyle.  Also, mechanisation and better ranching principles continue to make the work more pleasant and give farmers/ranchers the opportunity to expand without working harder or longer hours.  There is hope that agriculture will continue in the US, just with fewer operators and sadly, still supported with off farm income.  There is a joke amongst farmers and ranchers that when asked what they’d do if they won a million dollars, the answer is ‘farm until it’s gone.’

1966

Land cost per acre:  $93/acre  (my Bowyer Place)

Cow Prices:  $20/cwt  (20 cents per pound)

Fed Steer Price:  $25/cwt  (25 cents per pound)

Wages per hour:  $1.25 (minimum wage)

Fuel:  .32/gallon

2018

Land cost per acre:  $2800/acre (similar land sales in Linn County, MO)

Cow Prices:  $63/cwt  (63 cents per pound)

Fed Steer Price:  $115/cwt  ($1.15 per pound)

Wages per hour:  $7.25 (minimum wage)

Fuel: $2.45/gallon

CPI Inflation Calculator to compare:

Land – $93 in 1966 is the same as $725 in 2018 dollars

Cow Prices:  $0.20/lb  in 1966 is the same as $1.56/lb in 2018 dollars

Fed Steers:  $0.25/lb in 1966 is the same as $1.95/lb in 2018 dollars

Wages per hour:  $1.25/hr in 1966 is the same as $9.74/hr in 2018 dollars

Fuel: $0.32/gallon in 1966 is the same as $2.49/gallon in 2018