• You will need to login or register before you can post a message. If you already have an Agriville account login by clicking the login icon on the top right corner of the page. If you are a new user you will need to Register.

Announcement

Collapse
No announcement yet.

So as I said before the Supposed BTO do Fail!

Collapse
X
Collapse
 
  • Filter
  • Time
  • Show
Clear All
new posts

    So as I said before the Supposed BTO do Fail!

    Two farming companies managed by a
    controversial Illinois farmer declare
    Chapter 11 bankruptcy
    For much of the past decade, Rick
    Rosentreter has been bad-mouthed in
    coffee shops and on Internet discussion
    boards during his race to amass a large
    farm operation. He became a titan farmer
    by accumulating some 30,000 rental acres
    across central Illinois just 13 years
    after farming only 2,000 acres. The
    Carlinville, Ill., farmer has been
    accused of driving rents to unreasonable
    rates and destroying the moral fabric of
    the surrounding rural communities.

    Now, the future for Rosentreter is in
    doubt as his two farming companies,
    Illinois Family Farms and Illinois
    Family Farms Leasing Company, have filed
    for Chapter 11 bankruptcy protection.
    The leasing company filed on Oct. 12,
    2011, followed by Illinois Family Farms
    LLC on Nov. 23.

    A former Top Producer of the Year
    finalist, Rosentreter did not respond to
    our calls or e-mails regarding this
    article.

    Bankruptcy isn’t necessarily the end of
    a farming career, but it is important to
    investigate what happened. To gain
    insight for this article, we interviewed
    long-time agribusiness consultant Allen
    Lash, a trusted mentor for Rosentreter.

    One of the ways Rosentreter was
    attempting to stay competitive was to
    become a founding member of FamilyFarms
    LLC, a group started in 2008 by Lash.

    The Brighton, Ill.-based consultant once
    tagged Rosentreter as one of his all-
    time "best students." During a 2008 Top
    Producer interview, Rosentreter
    responded to the question, What’s next
    for you? with a smile and said, "I don’t
    know, Allen hasn’t told me yet."

    The History. The driving force behind
    Rosentreter’s quest for growth has been
    well documented. While drilling beans in
    1998, he watched as "a parade of large
    equipment rolled by." As the story goes
    when told by Rosentreter, another area
    megafarmer was on his way to plant a
    field that Rosentreter had farmed the
    previous year, only to be outbid for the
    rental acres. He’s referred to it as the
    most pivotal moment in his career.

    The Summer 2006 Top Producer article,
    "Cash in on Rent" profiled Rosentreter.
    In that article, he referenced his get-
    bigger revelation: "It was a wake-up
    call that my dad and I had to change the
    way we did business or be run over," he
    explained.

    In addition to farming at that time, he
    worked in the farm management department
    of the Carlinville National Bank.
    Ironically, today he owes that bank more
    than $15 million, most of it unsecured.

    The Carlinville bank has filed a
    foreclosure petition on Rosentreter’s
    personal household and has requested
    that the bankruptcy court waive its stay
    on foreclosures while the bankruptcy
    reorganization takes place. No ruling
    has been made.

    Flawed Model? Lash says the bankruptcy
    proceedings should not be viewed as a
    failure of the FamilyFarms model, which
    Lash tags as a peer group with much to
    offer. For example, he says, if a local
    equipment dealer files for bankruptcy,
    that doesn’t mean the equipment brand is
    not a success. It only means the local
    dealer didn’t make it. A mutual
    decision, Lash says, was reached and
    Rosentreter will not continue as a
    member of FamilyFarms.

    While Lash says he retains empathy and
    compassion for Rosentreter, he maintains
    there should be lessons taken from the
    downfall of the titan.

    "We have learned how important control
    systems are," Lash says. "We have
    defined five control systems farmers
    need to implement, and we’re putting an
    emphasis on them."

    Rosentreter’s situation shines a
    spotlight on the need for those systems,
    Lash says.
    THis guy couldnt do it in USA he went
    from 2000 to 30000 on rented ground.
    Some time you just have to say
    HM!!!!!!!!!!!!!

    #2
    when things go wrong, they go wrong big.
    Winning an award for producer of the year is as good as the kiss of death

    and short term renting is the road to ruin, as this guy found out.

    Too much shiny metal too!

    Comment


      #3
      This is just a guess but I wonder if there is a possible
      link to MF global problems.

      Much smaller operators lost hundreds of thousands of
      margin money.

      It was probably a house of cards anyway, but it will be
      interesting to see if that comes up.

      Comment


        #4
        They were talking about this on Agtalk a fair while before the MF thingy. The first post was on September 3. I think it was plain and simple mismanagement by someone too big for his britches. The guys down there say he simply got too big too fast, rented for too much money, and overbuilt in iron. WAY.

        Comment


          #5
          Poor management comes in all sizes. Just that the big ones fall harder and have much less sympathy.
          Seen the same thing here a few years back, and will again very soon.

          Comment


            #6
            Very true, furrow, very true.

            Comment


              #7
              lack of sympathy is only the start, most are actively seeking the demise of the landgrabbers.
              one in particular near me who is farming the eqivalent of twelve good family farms. lots of now landless neighbours very upset.

              Comment


                #8
                It's happening everywhere, hedgehog.
                So is ill feelings.

                Comment

                • Reply to this Thread
                • Return to Topic List
                Working...