What will the Banks do if we don't finish harvest?

[jd3007]

Just wondering how many have talked to their financial institutions yet about possibly leaving crop in the field until spring? What have they been saying? Mine has so far told me let's wait and see first and has not committed to giving me an answer.

[SASKFARMER3]

Hope and Pray!

[Partners]

I am sure they would be more than happy to extend your loan and charge you interest.
Pay interest only per yr.

[farming101]

If you owe the bank $100 that's your problem. If you owe the bank $100 million, that's the bank's problem. J. Paul Getty

[SASKFARMER3]

Make the call early inform them of what the heck is going.
If you have land available to use refinance a portion.

crop insurance wont pay a dime till you harvest then a month later and then if its delayed to long it will come off your 2017 insurance. Watch dates its a game for them as well.

Ag stab wont pay shit all for a year or earliest summer or fall of 2017. Then look out for audits etc.

Then you could use savings and aginvest.


Lets see how good GARS pays HA HA.

ITs going to be one tough year and if some ass in Calgary or Toronto changes his liking of farms you could of golfed with the President of the Bank in July they will forget you now.

Make the call early better than late.

[blackpowder]

Pretty much what sask3 said.
I drink beer with a banker. He said theyve been tightening up all summer. Dollars out/deposits moving out of line.
They also had a Sermon from the Mount yesterday am. Be proactive.

[iceman]

As SF3 said
Be early early early

Even if you think there might be a small chance of missing a payment. Call today and ask for a principal holiday. You can also throw money at the loan if you want in 6 months.

Now if you have interest only loans through FCC you will have to come up with other things

Oh and the most important part!!! Stop fu@king spending

Iceman out

[Guest]

As SF3 said
Be early early early

Even if you think there might be a small chance of missing a payment. Call today and ask for a principal holiday. You can also throw money at the loan if you want in 6 months.

Now if you have interest only loans through FCC you will have to come up with other things

Oh and the most important part!!! Stop fu@king spending

Iceman out

yea agreed , this is the MOST important part

[wmoebis]

Don't see what is the difference between harvest weather and drought of 88 etc. Or interest rates that caused hardships. What did they do then?

[tweety]

They went broke

[SASKFARMER]

Like I said earlier if head office tightens rope your options are limited!

Yes tweety is correct they exited agriculture and we lost some real good nice farms! Banks don't care!
You will find out who your real friends are!

Good luck all!

[binthere]

that is so funny sk3. someone of your self proclaimed expertise should know or appreciate the banker is not your friend between 9 and 5. they have lives to. they can be your friend after 5 if you can accept that rational.

[4GFarms]

Just come off a couple leaner years and finally this year may get back on track. Going to be interesting as this year makes me think about upgrading some equipment but need to watch the spending as well. Poor year next year and back to square one! What is everyones thoughts on borrowing/debt to gross income per year. Trying to read up on some different takes on it but get mixed signals from everybody that has an opinion.

[binthere]

any amount of total debt higher than 65% to net equity ratio over a period of more than five years is a very strong signal to get out and move on. regardless of the enterprise.

[4GFarms]

So how does everyone value their land??? I understand according to the current market it is worth a fair bit but would never pay that much for it. Is that just an artificial valuation if there is never an intent to sell?