How are things on the farm?

[bucket]

Can anyone comment on the private insurance and crop left out?????

[tweety]

I often wonder what the percentage of acres in western Canada have inputs borrowed against.

[flea beetle]

I often wonder what the percentage of acres in western Canada have inputs borrowed against.

I would say the vast majority. Went to a retailer to buy some chemical a couple years ago. The lady at the front desk grabbed the FCC clipboard without even asking if I wanted to pay. When I said I was going to pay for it, she said sorry most people put on the FCC account.

[Richard5]

So why do producers let it get to this point? I understand 3 month short term borrowing and sometimes you have to do that but letting a years inputs go on credit 12-16 months is crazy in my world.

Interest rates on some of these accounts gets as high as 9.49%.

[Sheepwheat]

So why do producers let it get to this point? I understand 3 month short term borrowing and sometimes you have to do that but letting a years inputs go on credit 12-16 months is crazy in my world.

Interest rates on some of these accounts gets as high as 9.49%.

It is crazy. But we all don’t have the same equity position, the same success or failure in crops, the same start in farming. Once in that hole, it is almighty hard to extract yourself. Mostly I would say it is an equity problem for mostly younger guys with little or no outside income, poor or no established credit, repeated poor crops, no one co-signing for them, and no or not enough paid for land. Some producers have precious little choice, if they want to farm. And I repeat, once in that position, getting out is a long term hell.

When your banker says farming is not paying for the land anymore, there is a big problem.

It is coming home to roost.

[Richard5]

It is crazy. But we all don’t have the same equity position, the same success or failure in crops, the same start in farming. Once in that hole, it is almighty hard to extract yourself. Mostly I would say it is an equity problem for mostly younger guys with little or no outside income, poor or no established credit, repeated poor crops, no one co-signing for them, and no or not enough paid for land. Some producers have precious little choice, if they want to farm. And I repeat, once in that position, getting out is a long term hell.

When your banker says farming is not paying for the land anymore, there is a big problem.

It is coming home to roost.

I came across a bit harsh Sheep, I know you have unique details and hoping for better times in the future. I was thinking more of those that seem to show off with the fancy line of equipment and who knows what else. But then again, I would have no idea of what someone's finances are by driving by a fancy yard or seeing the complete line of equipment get traded every year. Could all be paid for in which I tip my hat and say well done.

[shtferbrains]

I often wonder what the percentage of acres in western Canada have inputs borrowed against.

I often wonder how much cheaper the guy that pre-buys with cash can run compared to the guy that can't ?

How many $ per acre?

[Richard5]

I often wonder how much cheaper the guy that pre-buys with cash can run compared to the guy that can't ?

How many $ per acre?

If your normal production costs for the gross margin calculation run $160-180 per acre, financing that for 7-15 months would add $9 to as to $20 per acre

Cash and volume discounts would be over and above this.

[Partners]

Some of our neighbors think they can borrow themselves out of debt?
Some will never see daylight.
So they add more acres to try..

[Sheepwheat]

I came across a bit harsh Sheep, I know you have unique details and hoping for better times in the future. I was thinking more of those that seem to show off with the fancy line of equipment and who knows what else. But then again, I would have no idea of what someone's finances are by driving by a fancy yard or seeing the complete line of equipment get traded every year. Could all be paid for in which I tip my hat and say well done.

Not at all! I feel like I misread you now. I wasn’t talking about me per se. Since we began the journey of farming differently, we dug out of the hole. But I know a few guys who are in it and I commiserate with cuz it is real tough.