为什么我种地不赚钱？农业的利润都去哪里了？

种地想赚钱，得先堵上“利润窟窿”

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Why isn't farming profitable for me? Where have the profits in agriculture gone?

Many new entrants in the grain farming industry face a common dilemma: at the beginning of the year, they calculate that planting 500 acres of corn would yield 200,000 yuan in profit, but by the end of the year, not only do they have no money left, they even lose 50,000 yuan. Some even find themselves losing money year after year, eventually resorting to subleasing their land. The books clearly show considerable profits, so why do they disappear when it comes to pocketing the cash? The issue isn’t that farming isn’t profitable—it’s simply that you haven’t noticed how profits are quietly draining away through these four "holes.".

1. If management lags behind, no amount of land will suffice

Many large-scale farmers believe, "I grew up in the fields, so farming can't be that difficult?" They treat "large-scale planting" as just an amplified version of small-scale farming, only to fall into pitfalls from the very start. A small-scale farmer managing three acres relies on experience to handle everything, while a large-scale farmer tending 300 acres depends on "management skills" rather than "old experience." These two approaches are worlds apart.

Let's start with crop management. Agriculture is not simply "plant and wait for harvest," but a tightly interconnected system. Last year, a large-scale farmer in Anhui planted 200 acres of corn, believing that "there wasn’t much fuss about growing corn before." Without preemptive rust disease prevention, the farmer only noticed yellow spots on the leaves when the disease had already spread halfway. In the end, while others achieved a yield of 1,100 jin (550 kg) per mu, he harvested only 800 jin (400 kg), resulting in a loss of 120,000 yuan from this single factor alone. Another farmer applied fertilizers "by intuition"—overwatering during the wheat regreening stage led to widespread lodging, while delaying the application of growth-inhibiting agents for peanuts caused rampant vine growth and produced smaller, fewer underground fruits. These "after-the-fact fixes" may seem like minor oversights, but they ultimately translate into tangible profit losses.

Looking at labor management, large-scale farmers cultivating hundreds of acres of land rely heavily on hired workers. However, agricultural work "cannot be measured by piecework like in factories," making it prone to "slacking off." In Henan, a grain grower hired workers to harvest peanuts last year, paying by the day. Some workers sat in the fields playing with their phones, barely managing to harvest half an acre in an entire morning. Originally planned for five days, the job ended up taking eight days, resulting in an extra labor cost of over 30,000 yuan. Another large-scale farmer failed to set clear standards with the workers in advance, leading to mixed-quality corn harvests where good and broken grains were combined. This caused a price reduction when selling the corn, resulting in further losses.

We surveyed over 200 large-scale farmers and found that poor management is the biggest "profit eater": For the same 500 acres of wheat, well-managed farmers can achieve a yield of 1,200 pounds per acre, with labor costs controlled at 80 yuan per acre; poorly managed farmers may only yield 1,000 pounds per acre, yet their labor costs soar to 120 yuan per acre. The difference in profit between these two scenarios amounts to a full 150,000 yuan.

2. when disasters strike, a year's hard work comes to nothing

The biggest fear in agriculture is "depending on the weather"—even well-calculated profits can vanish in a disaster. Nearly one-sixth of the country's crops suffer damage annually from droughts, floods, hail, frost, and sudden outbreaks of pests and diseases, all of which are beyond control.

Last year, severe floods hit many areas in northern China. In Hebei, a large-scale farmer's 400-acre cornfield was completely submerged. By the time the waters receded, the corn stalks had rotted, resulting in almost total crop failure. He had initially expected to earn 300,000 yuan, but in the end, not only did he fail to make a profit, but he also lost 250,000 yuan in land rent and agricultural inputs. This year, the situation in the south has been even worse. A 38°C heatwave persisted for 90 consecutive days. Rice growers in Hunan reported that the high temperatures during the pollination period led to a 30% increase in empty grains compared to previous years, resulting in a loss of 200 kilograms per mu. For 100 mu of land, this translates to a revenue shortfall of over 40,000 yuan.

Even more frustrating is the fact that agricultural insurance is often "unreliable." Many large-scale farmers purchase insurance, but when disasters strike, they receive little to no compensation. Either the damage assessment is done hastily—just a few photos taken and the claim dismissed with a statement like "the loss didn't meet the total wipeout standard"—or the promised compensation of 950 yuan per mu ends up being only 9 yuan, not even enough to buy a bag of fertilizer. Last year, a peanut farmer in Henan suffered from continuous rain, causing the peanuts to sprout in the field. When he filed a claim with the insurance company, the process dragged on for three months, and the final payout was just 2,000 yuan—less than one-tenth of his investment. In such cases, farmers have no choice but to bear the risks of natural disasters themselves. With the potential to earn but not afford to lose, this situation weighs heavily on many large-scale farmers.

However, there are also well-prepared large-scale farmers: last year, during the same flood disaster, a farmer in Shandong had sprayed Yubao on his corn in advance, making it much more flood-resistant. While others' corn was completely lost, his still yielded 600 jin per mu. Although the profits were modest, at least there was no loss. This shows that taking preventive measures against disasters is far more effective than remedial actions after the damage occurs.

3. Misjudging market trends can turn a bumper harvest into a "white labor."

"Good harvests are no match for good sales." Many large-scale farmers work hard through the season, increasing production, only to be caught off guard by market conditions. Agricultural prices are like a "roller coaster"—some crops may sell for 5 yuan per pound this year, but could drop to 0.5 yuan next year, with a tenfold difference not being unusual.

Take ginger as an example. A few years ago, the highest purchase price could reach 4 yuan per jin. Many large-scale farmers in Shandong expanded their planting, but the following year, supply exceeded demand, and the price dropped to 2 jiao per jin. Some farmers even had to feed their pigs with ginger, failing to recover even the cost of seeds. Although grain prices are supported by the state, they still fluctuate: a 1-jiao difference per jin of wheat costs 5,000 yuan for 500 mu of land, while a 2-jiao difference per jin of corn costs 20,000 yuan for 1,000 mu. Last year, a large-scale farmer in Henan planted 800 mu of corn, originally expecting to sell it at 1.2 yuan per jin. However, by harvest time, the price had dropped to 1.15 yuan, resulting in a loss of 40,000 yuan—equivalent to working for free for two months.

Although market trends are unpredictable, they still follow certain patterns. In Zhoukou, there is a large-scale farmer named Ma Jiajie who avoided market pitfalls through "reverse thinking." Two years ago, when everyone was following the trend to grow peppers, he chose to grow okra instead. As a result, peppers faced oversupply and prices plummeted, while okra, due to its lower cultivation, became a sought-after product in supermarkets, selling for 5 yuan per pound—earning three times more than peppers. He remarked, "Don’t just plant whatever is expensive this year; think about what will be scarce next year. Following others will almost certainly lead to losses."

4.Hidden costs' stealing profits', you may not have even calculated them

Land rent, labor, and agricultural inputs are the "visible costs" that even large households can calculate, but there are also many "invisible hidden costs" that quietly steal profits, and you may not even know where the money is spent in the end.

Firstly, there is the loss of harvest and storage. Last year, there was a peanut farmer in Hubei province with 200 acres of peanuts growing exceptionally well. They were expecting a bumper harvest, but it rained continuously for 7 days before the harvest. The peanuts sprouted in the ground, but only half of them were harvested, resulting in a loss of over 800000 yuan. Some large households do not have drying equipment, so they can only rely on sun drying to harvest grain. In the event of continuous rain and rain, the grain piles up and mold, and some even grow sprouts. When selling grain, they can only be treated as "secondary grain", selling 20 cents less per kilogram, and earning 200000 yuan less for 1 million kilograms of grain.

Then there are financing costs. Nowadays, land rent, labor costs, and agricultural inputs are all increasing, and many large households have to invest hundreds of thousands of yuan a year. If they don't have enough funds, they can only borrow from the private sector, and the interest rates are often very high. There is a large household in Henan. Last year, they borrowed 100000 yuan from a private loan with an annual interest rate of 15%. The annual interest rate was 15000 yuan, and the money earned was just enough to repay the interest, which was equivalent to working for a season in vain. Even worse, if the market is not good and the money earned is not enough to repay the interest, it will continue to borrow more and more, eventually becoming a "job for creditors".

There is also a hidden pain of a large household - theft of agricultural products. The rural consciousness is strong, and if the wealthy households are from outside, they are easily "remembered" by others. There is a wealthy farmer in Jiangsu who planted 100 acres of grapes. When they were almost ripe, he lost dozens of pounds every day, with the highest loss being over 200 pounds in a single day. He installed surveillance cameras and hired people to guard them. Although he stopped the theft in the end, he had already lost more than 30000 pounds. Some wealthy farmers grow corn, but before harvesting, half an acre of land is taken away by someone; The person who planted sweet potatoes was dug up several hundred pounds by someone, and these losses may seem insignificant, but the accumulation is also astonishing.

To make money from farming, one must first close the "profit hole"

Many people think that agricultural profits are low, but in fact, it's not that agriculture doesn't make money, but that the "profit hole" has not been closed. If management cannot keep up, learn business methods, such as setting a "full process management table" for crops and setting "piece rate wages" for employees; If you are afraid of natural disasters, make disaster prevention preparations in advance, choose varieties with strong resistance, and avoid buying reliable insurance; The market is unpredictable, so pay more attention to market data and don't follow the trend; If the implicit cost is high, build a small drying room, plan funds in advance, and reduce borrowing.

Agriculture is not an easy job of "sowing and waiting for harvest", but a business that requires "careful planning and risk prevention". If a wealthy individual wants to make money, they need to transition from being a "farmer" to a "business savvy", guarding the profits in every aspect, in order to turn the "profits on the books" into "money in their pockets". After all, every penny earned from farming is dug out of the soil, which is not easy and needs to be carefully guarded.