Can I Live off Farming Income?

Can I Live off Farming Income?

Dozens of factors affect farming income. As these factors often move, farmers adjust to these conditions and often employ other income streams. Do you wonder, Is farming for me? Can you expect to live off the income produced on a farm in southeastern Colorado? Can I live off the farming income?

Affording the Farm and Ranch Lifestyle

Lamar offers stable financial opportunities for anyone with the determination to get farms going and to keep them maintained. And that takes creative genius. So, it’s not a simple equation.

Ask yourself. Do you have resources? Do you appreciate the small towns in southeastern Colorado and their old-fashioned ways? Do you thrive on conquering physical projects? Do you think of a small farming operation or do you want to be involved in a large production? Which agricultural properties catch your attention?

Historical Farms

Although Colorado has strong agricultural communities, the types and sizes of farms and ranches have changed dramatically over the past century. Homesteaders used to produce a variety of foods—meats, grain, and fruits and vegetables. They were family farms and the family worked them. Small family farms make up about 88 percent of farms in the United States today.

Commercial Farms

Witness endless commercial farms leading into Denver with colorful fields owned by large corporations. Across the nation, these big producers make up only 3 percent of the farms by number. But they produce 54 percent of the yield.

Even so, we continual see movement away from cities and towards small organic farms, farmers markets, and farm to table opportunities.

Farm Household Incomes

The United States Department of Agriculture or USDA gives us some idea. Its Economic Research Service offers an overview with figures for 2022 and updated in February 2024. This may give you some information to help you study the feasibility of living on farming income.

In 2022, small and big farm owners experienced a median household income of between $95,418 and $505,830. That exceeds the median household income in the United States. The income increased based on the size of the farm and the off-farm employment.

Small vs Large Farms – Income Breakdowns

Farms submit accounting figures to the government in GCFI. Eighty-eight percent of all farms produce less than $350,000 in GCFI, putting them into the category of small family farms. Most dollar production comes from large farms, defined by at least $1 million in GCFI but only 3 percent of farms produce this much.
Regardless of size, gross cash farm income or GCFI includes:

• Commodity cash receipts
• Farm-related income
• Federal Government payments
• Off-Farm Employment

Just so you know, many farm owners lease out portions of their properties for income. In addition, it’s not unusual to find farmers who develop multiple income sources. For example, a cattle/calf operation can increase farming income. In fact, in 2022, farms across the nation brought in $258.5 billion of income by adding cow/calf operations, poultry and eggs, and dairy. These totaled 33 percent, 29.8 percent, and 22.2 percent.

Farms for Sale in Southeastern Colorado

Cruikshank Realty, Inc. in Lamar lists the following Colorado farms and farmland for sale. The properties offer a variety of resources. Prices range from $154,000 to $1,600,000.

• 

  20+ acres Lamar CO

  15+/- acres in Lamar, CO

• 20+/- acres in Lamar, CO
• 50+/- acres in Boone, CO
• 110+/- acres in Boone, CO
• 300+/- acres in Cheraw, CO
• 320+/- acres in Towner, CO
• 475+/- acres in Holly, CO
• 600+/- acres in Two Buttes, CO
• 3350+/- acres in Walsenburg, CO
• 6030+/- acres in Keyes, OK

Farm and Ranch Brokers – Lamar, Colorado

For more information, please call Cruikshank Realty (719) 336-7802. Schedule an appointment or come by our office at 20 S. Main Street, Lamar, CO 81052. Specializing in Residential, Farm and Ranch Real Estate Sales, Management, Auctions, and Exchanges.