Legal advice

[westernvicki]

Land recently sold for as high as 3.5 Assessed value! Just sayin.

[makar]

Banks are the death of farming, have you talked to farm credit? Left the banks years ago.

[farmaholic]

Just a thought and general comment( no accusations):

Just because they'll lend it to us doesn't mean we have to borrow it!

[Redone]

This is the biggest thing that keeps me up at night. We are about 10 years in to full time agriculture and it is damn scary what banks are willing to lend out. We recently expanded our credit line as our business has grown and when meeting with the bank they wanted to give us more than we were asking for. I told them I could not pay that amount down in a year and they didn't see the problem with that.

Good luck through this, and if you find anything out please let us know

[furrowtickler]

Vicky , how does that work on sub $5 wheat or feed barley or shit lentils ?????
Maybe ok with canola but I guess that's for the canola snow canola rotations

[tweety]

Luck has nothing to do with this. Start here, but since you won't say where you are from, only guesses.

[EMAIL="http://www.felesky.com/"]http://www.felesky.com/[/EMAIL]

http://www.cameronhankinson.com/contact_us.html

Cam Hank has lots and lots of clients in agriculture. Very specialized, very good. They work with the above. They will suggest what you should do based on facts and numbers assuming yours are in order and felesky will minimize your tax in the process - regardless of outcome. They can plead your case to a bank because you don't speak money. They do.


Talk to them. Yes my comment was an asshole one for sure. But I hope it strikes a cord, hire and get to know a good tax lawyer, accountant, and lawyer who specializes in your business not only when things go sideways but when they are good even more importantly.

[jd3007]

I have been in contact with MNP and they have told me that some of the big chartered banks are starting to tighten up their lending practices. If you have been profitable you will be alright it's the ones that haven't that they are starting to really look at. Banks have issues large Line Of Credits to customers and then encouraged customers to use these funds for expansion will land prices were rising. Customers filled them up and then needed to term out debt continue operating. Bank is saying no more money for you as you you have reverse working capital and we can't lend you more money based on that. Many of these customers have good balance sheets and credit ratings but have become cash right and the banks are not stepping in to help. This has forced some operations to look for other banks, refinance, use products like input capital, downsize, or the final solution was to sell out. There is options out there you need to look hard and exhaust all opportunities but if you have equity you have to wonder do I continue to risk it or get out while I have something.

[jamesb]

Give Bob Stocks in Regina a call. He does mediation work.
http://www.bobstocks.ca/
Under grow forward 2 , there is financial planning assistance funding available among other things that can lessen the cost to create a new business plan.

[westernvicki]

Give Bob Stocks in Regina a call. He does mediation work.
http://www.bobstocks.ca/
Under grow forward 2 , there is financial planning assistance funding available among other things that can lessen the cost to create a new business plan.

Land has never pencilled but in all fairness the old rule of thumb: 1/2 of land = to a combine value makes land still a good deal. So, if I had debt problems I would liquidate some land and hope my neighbours still had money. There are some pits you just cannot fill.

[westernvicki]

Land has never pencilled but in all fairness the old rule of thumb: 1/2 of land = to a combine value makes land still a good deal. So, if I had debt problems I would liquidate some land and hope my neighbours still had money. There are some pits you just cannot fill.

1/4 section to a combine.. sorry not a 1/2 section.

[Eeyore]

Pretty busy and can't give this much attention or thought, a combine is $750kish which is $4600/acre???
Am I calculating this right?

[tweety]

Do you have a business plan with solid numbers to present that shows how you will be profitable?

[hobbyfrmr]

Do you have a business plan with solid numbers to present that shows how you will be profitable?

Ha ha ! At these grain prices does anyone?

[tweety]

Well you have to be profitable, or you cease to exist as a business. Prices have been a lot worse, there are many generic herbicides now, urea is priced quite reasonable, and you can grow your own seed for a majority of the crops. Ag is one of the few businesses today that are quite profitable.

No bank is ever going to approve a loan without a solid business plan in todays environment. That must come first.

[Eeyore]

I spent $10k on a business plan that was presented to our bank and declined(may17th), the so called financial expert was a waste of time and money.
Add financial planners to the list of parasites.
Disagree tweety, the buying power has never been much worse and when they were bad the dollars required to run a farm were much less, why else does canola grower advances keep going up if there wasn't a need?
Note my previous post replying to westernvicki comparing land to combines all while receiving basically 50 year old grain prices, unless you were set up from the start and luckier than me , east central Sask is a hard place to get ahead farming.