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Looking for Chinese or other Investors Return 10% or more return.

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    Looking for Chinese or other Investors Return 10% or more return.

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    I have been on the road this week and funny all the new super farms seem to have a few things in Common.

    Out side money has to be involved, Because most were nothing less than five years ago.

    Yesterday i drove by a new farm that wasn't around 5 years ago that has Basically its own railway siding, New Bins that looks like the silver silo at Regina plus Shop like South country and other fertilizer and equipment sheds. 20 mill would be a good guess.

    So how does one get investors and keep the party going.

    Every investor expects a profit.

    But again i have no jealousy towards any of these farms like some on here might feel. Hell if you want to run Walmart and i am happy with the Dollar store, its whatever rocks your world. Yes their is a place for Walmart but don't some Dollar stores make out almost as good.

    I have no desire to farm 200 or 750 quarters of land. Most farmers don't either. But are we the next dinosaur that will be replaced. The smaller farms that are still mom and pop or Brothers or Uncles.

    I wrote a week ago about financing a pyramid farm and talk to any one in Banking and they will agree it happens in a rising market. Knowing When to get out and let another take over is the big challenge because with every scheme their is a correction.

    But on out side investment i have no clue how to set it up how it would work and how a farm in Saskatchewan can pay for millions of dollars of infrastructure and equipment and still give all investors a return plus the principle owners a return with todays prices.

    The USA i always say is two years ahead of us. What happens their eventually happens north of the border. So are these Super farms the next challenge. Last winter in ND and Minnesota a very large farm went down. I remember this farm from travels to Fargo Big Iron. Impressive lots of Equipment buildings etc. Your dream farm. But when all the ashes were settled their wasn't a penny left. Also last winter a super super farm went down further east after that was all settled they were 100 mill short or more. Mind boggling.

    But some will say this is Canada where nothing like that can happen.

    I say GMC was always considered to big to fail. HA HA HAH like that didn't happen but the USA and Canada did resurrect and they continue today. A Farm won't be resurrected.

    So if your using some one else Capital to build your dream farm how is it done.

    Some one explain to me, please.

    Ag is a changing business and we have to adapt and change or we will be replaced. Is it to late to join the party, I felt land peaked in our area two summer ago with Redland sale and yes nothing has sold lately higher than that. So stable prices since that time. Nothing is really moving in our area. If something comes up its snapped up now by locals usually. New Canadians who are farming or young guys getting started. So yes Its a stable environment in our area. We lost the three big Super farms that had big money or investors. Two went out of Business and the third picked the top to leave and did very well. One out of Three isn't bad.

    But going to 20000 or 40000 acres has more costs more risk and some reward if you call it correct. One could risk the entire farm and probably find a lending institution that would borrow say $40,000,000.00 to create a super farm. Using the scheme i described last week. But Why risk ones own assets. The investor farm interests me.

    Find investors for 40 mil and put your expertise and land owned as part of the rental area. You still own. I have know idea.

    So again if any one has some idea on this share please.

    Because maybe what will be left is few small family farms and large land renter land owner Corporate giants.

    Any ideas would be greatly appreciated.

    Yes i said i don't want to go over our size but maybe this is a way to grow to the next level a few years down the road. Looking for all ideas. My Grandfather had 4 that my dad took to 12 we took to 40 for my son to take 40 to 120 i feel is not possible under the current way of farming.

    I understand that moving to a farm manager position is different than owner, or shareholder. Good years the board meetings are easy to do but tough times are hard to keep the parade going. Your giving up control.

    Again any help would be greatly appreciated.

    Confused on how to continue to the next step or should one just sit back and coast and see what comes next.

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    #2
    Ok 5% return on your money.

    Again any one have any idea, Im stuck.

    Is this the new farm landscape in Saskatchewan or a passing fad.

    Comment


      #3
      why farm if you have investors telling you what to do, you might as well get a 9 to 5 job and forget about faming and all its risks. Take the evenings and weekends off.

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        #4
        I think first you need to go to the Gary Pike school of communication. You need to be able to over promise and under deliver and not feel bad about it.

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          #5
          First convince FCC and other lenders that the textbook and foreign way is the only way to farm.
          Then take them to the cleaners for millions as the manager while you settle your bankruptcy.
          Lol. Only in Canada.

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            #6
            Heres the link to the farm website that SF3 is talking about:

            http://www.kambeitzfarms.com/

            Comment


              #7
              Sf3 why worry and wonder what other big guys are or how they are doing it. Who gives a ****. From what I can see your operation is excellent.

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                #8
                I’m just wondering today on how the next generation will farm go ape or stay same or wait for correction.

                One son that’s away in Saskatoon would like to farm some day and I will rent him mine at a big discount youngest still in school so not sure on him.

                Looking at ideas

                Comment


                  #9
                  I drive by this farm every time I go to Regina. It will be interesting to see if these farms can succeed in a tougher farm climate. We saw what happened to One Earth farms.
                  We have a lot of farms that have grown to sizes previously thought impossible. Most of these still have a large family involvement and have not gone to a pure corporate model. Most are still "family farms".
                  We then all look at some of these new outfits that are so different than our own and pass judgement on if they will be successful. I am sorry to say that many in Sask seem to delight in the failure of the big operations. Misery likes company and many who feel the challenges of farming today I guess feel better if others go down, especially if seen as a threat to their own way of doing business.
                  I think of the book The Outliers by Malcolm Gladwell. It delves into successes of people and how timing and environment and make a huge difference. It will take years for us to really see if the way of the future is this or is it a blip in time?

                  Comment


                    #10
                    Originally posted by biglentil View Post
                    Heres the link to the farm website that SF3 is talking about:

                    http://www.kambeitzfarms.com/

                    It's a beautiful yardsite to service this very diversified operation. I heard that they have the largest rock crusher in the province and they farm a lot of land. KF exemplifies what can be done with a basic family farm, if you don't mind investing so much into management. They are all in on ag business.

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                      #11
                      Another sucker is born every day, and those like Gary Pike are more than willing to take advantage them. Everyone is seeking "safe" ROI. Bonds no longer beat or even keep up to real world inflation unless you're willing to play in the riskiest... UK 10yr is 1.23%, German 5yr is negative, 10 year is only 0.3%.

                      Remember those Spanish, Italian, and Greek bonds everyone was shitting their pants about a few short years ago? Does anyone honestly think their 10yr commitments are worth the risk at 1.4%(spain), 1.7%(italy), or even 5.3%(greece).

                      Stocks look incredibly frothy with most indices posting p/e ratios > 20. Some like the nasdaq or Russell 2000 pushing north of 40.

                      Housing? Bitcoin? Good God everything looks frothy!

                      So when a sharp dressed business person tells everyone that they can make 5-10% ROI and they show a bunch of suckers graphs of land prices, commodity prices, and farm asset inflation over the last 10 years without the usual "past performance is not indicative of future results" disclaimer, they lap it up!

                      How much longer can this possibly continue? Financialization seems to have accrued massive rewards to those who can create ever more opaque financial instruments to garner access to cheap credit and leverage. It all reeks of Ponzi, or Madoff, but until this meets it's inevitable end, things just seem to be getting weirder.

                      Comment


                        #12
                        Hey my input to thread is of little importance.
                        But ive gone from a mddle size operator to large scale. Had around 11,000 acres my self 6000 plus acres of crops and 3500 sheep for wool. With 1 workman and occasional casuals.

                        Then went to larger scale joint farming operation 27,000 acres of crop all leased or rented land and sheep got scaled back.

                        Well after 3 years im going back to doing my own thing with one workman my son and myself.

                        Doesnt help with sask3 question maybe im backwards my im not driven maybe its not actually that effiecient when its supposed to be, maybe having 5 workman and us 2 two bosses and casuals is a headache.

                        Plenty of reasons.

                        Sold all equipment i had when we started and we leased new.

                        Anyway finishing comment owning land is king not renting/leasing in my opinion
                        Last edited by malleefarmer; Dec 2, 2017, 13:34.

                        Comment


                          #13
                          The farm I drove by really wasn’t much of a farm five years ago. Most land was rented out.

                          Yea mallee I agree big looked great and now your back to normal with family and a guy.

                          I’m just wondering how we get to owning 120 quarters time I’m in the ground if we continue as each generation did increase the owned land by 3 times.

                          Ok sipping the new Sask cherry whisky in sled shack fixing the solar power unit. Had time to reflect.

                          Comment


                            #14
                            Agree Mailee. Owning land is where it’s at.
                            Whoever wants to be kissin some investors’ ass have at it.
                            Everyone has to set their own goals and most of all be happy and satisfied with your own progress and growth curve.
                            There is always a way to work the next generation in-likely involves a lot of give on the older gen part, and a lot of drive (off farm work, additional enterprise, ?) on the younger gen part.

                            Comment


                              #15
                              What jamesb describes is "schadenfreude"....taking pleasure in other people's misery.

                              In a way, most of us probably could have done what they did....if you are slick and got the balls! Good on them....they've done an amazing job of selling themselves! The only thing I don't like is the young "farmers"(real potential farmers!!!!...no sarcasm intended) in the area are shut out of the market at the hyper-inflated land prices. Hard to compete with "CASH".

                              Remember guys and gals.... if the investors aren't tied into a deal like we're talking about but outright own the land and they're looking for a tenant on their own..... you don't have to make it worth their while paying big rent on the land! If their only return on investment will be rent on land that has probably plateaued or possibly see a slight correction(how much more appreciation could possibly be left?)....why make it worth their while. Maybe "you" should own it at the end of "your" career! But around here people trip over themselves and others paying rent that does make it worth the investors while.

                              ****ing feudalism/serfdom is evolving.

                              We have a base to build on.... only rent 30 acres. I would rather buy than rent! If this thing turns around I can afford to be wrong(have bought too high) on a bit of land. And I'm willing to be if it's the right stuff! Always looking to expand the Slum of the Ghetto.... annex stuff that touches!
                              Last edited by farmaholic; Dec 2, 2017, 14:47.

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