Tighten your belt

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Tighten your belt

Aug 1, 2016 | 08:47 1 That is the advice from Rabobank . Don't produce more, just do it cheaper. Really!!! Land price increase being blamed for farmer costs. You may not get operating loans if you don't cut input cost. Tell it to machinery companies and drug dealers( Fert ,seed and chemical suppliers). Reply With Quote
Aug 1, 2016 | 11:09 2 Farming 5000 acres 200 plus cow herd irrigation and dryland, Me, My Wife my 83 year old father and a couple teenage children helping where they can. Pretty much on my last notch on the ol belt. maybe JD Case and Agrium better find a few on theirs. Reply With Quote
Aug 1, 2016 | 11:26 3 To Rabibank - most of us in western Canada have tightened our belts long ago.
Agree - it's time for the rest of the Ag industry to tighten theirs .
Most of us run on very low labour and labour costs . If I worked out my wage per hr it would be embarrassing.
Actually coming from a bank - lol .
We can tighten more - that means no equipment purchases for the next several years - no prob .
Inputs can be trimmed but not cut to deep , or it would be not even worth the time and effort to seed in the first place Reply With Quote
Aug 1, 2016 | 11:55 4 Not sure if a Dutch lending institution has the best handle on Western Canadian agriculture.

Are they big enough on the prairies to hand out free pails at farm shows? 😂 Reply With Quote
Klause's Avatar Aug 1, 2016 | 12:07 5 Tighten up... ok.


No 3rd party advisor leaches.

No equipment purchases.

Build parts and source from anywhere but dealers.


Cut out high n crops like canola. Replace acres with more N fixing crops like pulses clover and alfalfa.


Take wheat out replace with an aleoleic crop like rye. Less fertilizer less chemical.


Go organic. There's ways to do it right. Again cut the input worms off and sell people stuff for more $$$


Course that's a world of hurt for everybody else in ag. Maybe it is time for them to feel some pain Reply With Quote
SASKFARMER's Avatar Aug 1, 2016 | 12:14 6 We cut out operating loan three years ago! New equipment purchases are on hold or non existent!
Soil tests used more and more! Why over Fert!
Cut out excess labour. We are heading to a complete family system! 17 and 18 and 15 year old sons!
Land purchases dropped and rent renegotiate!
Also when the companies say buy tell them point blank to F$&k Off.
Fert Chem seed and equipment!

Realize that every one needs you in this pyramid scheme and your taking it back'

Because they don't give a rats ass about you mr farmer!

Get back to basics!


Reply With Quote
Aug 1, 2016 | 12:24 7 It the old "cost/price squeeze". I remember a Royal Bank presentation about 20 years ago where they showed a 100 year graph on wheat. David Kohl (?) described how farms were going to get larger and more efficient. It played out exactly that way around here. There are large well organized and well capitalized farms. Max inputs and terrific yeilds. They negotiate discounts for inputs and machinery and hedge a couple of years into the futures markets. It looks like its all about protecting margins and scooping some cash as it flows past. Plus gaining equity on purchased land. K They buy and rent for high dollar, good machinery lots of employees. They travel the world, buy vacation properties and live well.
When I started farming I had no money, no equity and no backup which insulted me the most! I understand being in the squeeze and really didnt care much for that lifestyle. I borrowed everything, paid it back and lived on the crumbs. The theme has always been economies of scale. You make $15. 00/acre on 1000 acres $15,000.00 not the best lifestyle. You make $15/acre on 10,000 acres....$150,000. Now your living! My neighbors farm 18,000, 30,000 and 55,000 acres. They live well and Im cool with that.
Dont shoot the messenger. Reply With Quote
Aug 1, 2016 | 12:39 8 I dont think I am all that successful but there is a teeny weeny little twinge of satisfaction when I get the chance to politely say " no thank you, I am fine.
I had a good visit at the lake with a convetional farmer my age. Over several beers by the campfire he vented describing the difficulty of hiring a plane for fungicides and the timing. Then the fert bill and the $200,000 canola seed bill, the yeilds he needs to break even on these poor prices.
I kind of forgot his kids were in earshot but I just said " yeah, well.....fuck all that!"
Im not exactly a motivational speaker. Reply With Quote
fjlip's Avatar Aug 1, 2016 | 13:24 9
Quote Originally Posted by SASKFARMER View Post
We cut out operating loan three years ago! New equipment purchases are on hold or non existent!
Soil tests used more and more! Why over Fert!
Cut out excess labour. We are heading to a complete family system! 17 and 18 and 15 year old sons!
Land purchases dropped and rent renegotiate!
Also when the companies say buy tell them point blank to F$&k Off.
Fert Chem seed and equipment!

Realize that every one needs you in this pyramid scheme and your taking it back'

Because they don't give a rats ass about you mr farmer!

Get back to basics!



What year is the "A"?, Mine is a 42, won my class at Kelvington Vintage Pull Saturday.Name:  1942 A.jpg
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fjlip's Avatar Aug 1, 2016 | 13:29 10 Guess this could happen....Name:  tractor4sale.jpg
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SASKFARMER's Avatar Aug 1, 2016 | 13:32 11 That's one of 6 A s I have it's a 1952 we are second owner! Have original warranty documents and bill of sale for it! Reply With Quote
Aug 1, 2016 | 13:46 12 I just laughed at you Hobby, even if you are a Granola farmer you still have an investment into your crop. It is most likely the same % as a real farmer. Im thinking those kids of your friend were not offended, Im sure there dad swears everytime he drives past your weedpatch. When prices go down I invest more into my crops. Lower prices can be beat with big yields on my farm. Nothing like adding a little gas to the fire. Reply With Quote
Aug 1, 2016 | 15:15 13 Breadwinner, I cannot argue against your claim. I have watched it happen all around me for decades. Just because I dont understand it doesnt mean its all wrong. If it was easy, everybody would do it. Reply With Quote
Aug 1, 2016 | 16:05 14 I find it so hypocritical that this tune is coming from the very institutions that were tripping over themselves to lend farmers money for $100 rent and $350,000 per 1/4 . And endless leases for guys wanting to run the big show .
You watch the Canadian banks will be singing this same tune shortly . Reply With Quote
Aug 1, 2016 | 16:48 15 $400,000 per quarter. The best answer I have heard about the high land prices, " pay interest, or pay income tax, its up to you!! "

Lenders encourage borrowing that is their livelihood. Lenders can't lend money if no one is encouraged about their future enough to borrow from them. Reply With Quote
Aug 1, 2016 | 17:04 16
Quote Originally Posted by furrowtickler View Post
I find it so hypocritical that this tune is coming from the very institutions that were tripping over themselves to lend farmers money for $100 rent and $350,000 per 1/4 . And endless leases for guys wanting to run the big show .
You watch the Canadian banks will be singing this same tune shortly .
Would that be a bad thing if banks tightened up lending to the high risk farmers?

There are a few lending companies and a few leasing companies who in making great money off that demographic already. Reply With Quote
Aug 1, 2016 | 22:00 17 Saskfarmer i find your posts funny

Its always your posts that remind others that they don't have it as good as you. What kind of post is "we cut our operating loan three years ago"

Why don't you just say you have one crop deferred to next year, one in the bin yet, next years inputs paid for and at home already, always a million plus in the bank at all times and heck through in the fact that you and your family have 3 or 4 corporations struggling to keep there tax below the 500000 business limit.

You always have to brag in your posts.


Now for my 2 cents, i think many operations could trim a lot of costs in many ways. First big one is equipment. Falling for the sales pitch of "need a new one to prevent down time" or the good ole fraud of the lease scam would save many a lot of operating funds.

But that wouldn't look good from the road. It all about the show to many and i think, many are mortgaged to the max, have most or all the equipment and bins leased. For those in that position, what do honestly own?

A big correction will be happening soon, glad i farm within my means Reply With Quote
farmaholic's Avatar Aug 1, 2016 | 22:48 18 Richard5, cash is King except when you don't have any....then its a bastard! Reply With Quote
Aug 2, 2016 | 04:46 19 Richard, I took as though Saskfarmer decided not to borrow amd overspend. It is a bit of a choice. Some get by on what they've got in their pocket- other get an operating loan. Reply With Quote