Liabilities of Owning a Farm

Decent Essays

Thinking of owning a farm? Farming is great for some people but it’s not for all. A farm has many assets and liabilities when it comes to finances. One of the assets of owning a farm is seeing the plants grow and making a profit off of those plants. The liabilities of a farm are the purchase of seed, cost of employees, and the cost incurred for plant care. A farm can be very expensive but it can also be very profitable.
A liability of owning a crop farm is the expense of corn seed. Seed prices can vary depending on the crop that meets the farmer’s needs. Corn has many different types of plant species, from comestible corn to the non-comestible corn. Field corn is a non-comestible corn that is ground into corn silage. Corn silage is used by farmers to feed their livestock but they can’t solely feed their livestock corn silage, livestock needs a diet of other foods with the corn silage. It takes 30 pounds of corn seed to cover an acre of a field. Comestible corn seed costs about $485.00 for a 56 pound bag. (Seedland)
Now corn is more costs a little more than alfalfa but a farmer can’t just feed their livestock corn silage. Most dairy farmer feed their cows a diet of a small percent of silage and then a larger percent of alfalfa hay. Alfalfa hay is used for many things such as for feeding livestock. Most alfalfa seed costs $349.00 for a 50 pound bag. (Seedland) To cover an acre of land it takes 20 pounds of seed. The reason why is because 60% of the alfalfa seed never

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