Broadacre and Wigmore

[farmaholic]

If management was able to resurrect a defunct company from the ashes like a Phoenix, would that be buried in the bowels of farm publications?

Goes both ways

[freewheat]

Farmaholic, I feel the same about FCC. How did they get caught like this. This is a company who would not lend me money for land 5 years ago. Yet they loan millions to a bunch of arrogant losers.

[samhill]

Free- FCC means "For the Children of the Chosen.
Lots of us they won't look at, but they always like you to submit all your financial records for their database.

[freewheat]

Yeah I noticed that. I gave them more info than was required by anyone else in my career. Took them pages of info. And they said no. FOR LAND! Took the same papers to the Royal, they approved me in 2 days.

Either you think they are awesome, or like me, I do not think much of them at all. And even more so now. Putting millions into an entity which was already near having to pack it in, (wigmore), is unreal to me.

There is an article I read where one of the Wigmores said they were having to get out. And yet FCC to the rescue with millions? Not to mention the other creditors who obviously either can't read, or think stupid acreages make you somehow immune to losing money.

[farmaholic]

Freewheat, it would be interesting to hear FCC's response to your comment. Who was the bigger risk? I'd have to re-read the Price Waterhouse document, but didn't FCC step up when ScotiaBank stepped back? ****ING DUH!!!!!

[farmaholic]

My bad, it was MetLife. Page 6 paragraphs 19-22.

http://www.pwc.com/en_CA/CA/car/broadacre/assets/broadacre-002_110514.pdf

[sumdumguy]

I figured FCC would be so gullible. They see dollar signs in their eyes and go ga-ga-goo-goo. I hope they took enough security so other farmers don't have to pay for their mistakes.

[TOM4CWB]

It looks to me that AAFC doing an audit caused a repayment of $477,694.11 for Wigmore 2005 and 06 crop seasons request for overpayment. Then 3 days later FCC put the loans into their 'Special recovery group.

Bank of Nova Scotia started the whole cash flow crunch last summer demanding CPS bills be paid 'early'.

The millions of short term US $ denominated loans... at 20 percent interest... and currency loss close to $2M from those management moves all insured this collapse.

Very interesting reading from a risk management perspective... this is required reading for farm managers who want to see what taking risk can do to a farm...

What a story is told.... enough financial pain for 100 farms... 65,000 divided by 100!

This farm was Never profitable... WOW

[hobbyfrmr]

But.....they had a nice mission statement, and managed to impress so many! . You might say they were the " darlings" of the communities they did business in.
I wonder what the list of creditors are thinking now? I think shareholders are stuffed.
There is a list of about 20 creditors on schedule 1 in the document who may see some money. The Ulrich guy took a mortgage, he may end up with land and building assets. Boyce used a GSA so not sure how that goes, probably just thrown in the mix with the others.

[wmoebis]

We are always told to lock in marketing profit margins. What market plan were these guys following?
Not that it makes a dif to me bit would be interesting to hear from their point what went wrong so others don't follow. No matter what size of operation you are.