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Tighten your belt

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    Tighten your belt

    That is the advice from Rabobank . Don't produce more, just do it cheaper. Really!!! Land price increase being blamed for farmer costs. You may not get operating loans if you don't cut input cost. Tell it to machinery companies and drug dealers( Fert ,seed and chemical suppliers).

    #2
    Farming 5000 acres 200 plus cow herd irrigation and dryland, Me, My Wife my 83 year old father and a couple teenage children helping where they can. Pretty much on my last notch on the ol belt. maybe JD Case and Agrium better find a few on theirs.

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      #3
      To Rabibank - most of us in western Canada have tightened our belts long ago.
      Agree - it's time for the rest of the Ag industry to tighten theirs .
      Most of us run on very low labour and labour costs . If I worked out my wage per hr it would be embarrassing.
      Actually coming from a bank - lol .
      We can tighten more - that means no equipment purchases for the next several years - no prob .
      Inputs can be trimmed but not cut to deep , or it would be not even worth the time and effort to seed in the first place

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        #4
        Not sure if a Dutch lending institution has the best handle on Western Canadian agriculture.

        Are they big enough on the prairies to hand out free pails at farm shows? 😂

        Comment


          #5
          Tighten up... ok.


          No 3rd party advisor leaches.

          No equipment purchases.

          Build parts and source from anywhere but dealers.


          Cut out high n crops like canola. Replace acres with more N fixing crops like pulses clover and alfalfa.


          Take wheat out replace with an aleoleic crop like rye. Less fertilizer less chemical.


          Go organic. There's ways to do it right. Again cut the input worms off and sell people stuff for more $$$


          Course that's a world of hurt for everybody else in ag. Maybe it is time for them to feel some pain

          Comment


            #6
            We cut out operating loan three years ago! New equipment purchases are on hold or non existent!
            Soil tests used more and more! Why over Fert!
            Cut out excess labour. We are heading to a complete family system! 17 and 18 and 15 year old sons!
            Land purchases dropped and rent renegotiate!
            Also when the companies say buy tell them point blank to F$&k Off.
            Fert Chem seed and equipment!

            Realize that every one needs you in this pyramid scheme and your taking it back'

            Because they don't give a rats ass about you mr farmer!

            Get back to basics!


            Comment


              #7
              It the old "cost/price squeeze". I remember a Royal Bank presentation about 20 years ago where they showed a 100 year graph on wheat. David Kohl (?) described how farms were going to get larger and more efficient. It played out exactly that way around here. There are large well organized and well capitalized farms. Max inputs and terrific yeilds. They negotiate discounts for inputs and machinery and hedge a couple of years into the futures markets. It looks like its all about protecting margins and scooping some cash as it flows past. Plus gaining equity on purchased land. K They buy and rent for high dollar, good machinery lots of employees. They travel the world, buy vacation properties and live well.
              When I started farming I had no money, no equity and no backup which insulted me the most! I understand being in the squeeze and really didnt care much for that lifestyle. I borrowed everything, paid it back and lived on the crumbs. The theme has always been economies of scale. You make $15. 00/acre on 1000 acres $15,000.00 not the best lifestyle. You make $15/acre on 10,000 acres....$150,000. Now your living! My neighbors farm 18,000, 30,000 and 55,000 acres. They live well and Im cool with that.
              Dont shoot the messenger.

              Comment


                #8
                I dont think I am all that successful but there is a teeny weeny little twinge of satisfaction when I get the chance to politely say " no thank you, I am fine.
                I had a good visit at the lake with a convetional farmer my age. Over several beers by the campfire he vented describing the difficulty of hiring a plane for fungicides and the timing. Then the fert bill and the $200,000 canola seed bill, the yeilds he needs to break even on these poor prices.
                I kind of forgot his kids were in earshot but I just said " yeah, well.....**** all that!"
                Im not exactly a motivational speaker.

                Comment


                  #9
                  Originally posted by SASKFARMER View Post
                  We cut out operating loan three years ago! New equipment purchases are on hold or non existent!
                  Soil tests used more and more! Why over Fert!
                  Cut out excess labour. We are heading to a complete family system! 17 and 18 and 15 year old sons!
                  Land purchases dropped and rent renegotiate!
                  Also when the companies say buy tell them point blank to F$&k Off.
                  Fert Chem seed and equipment!

                  Realize that every one needs you in this pyramid scheme and your taking it back'

                  Because they don't give a rats ass about you mr farmer!

                  Get back to basics!



                  What year is the "A"?, Mine is a 42, won my class at Kelvington Vintage Pull Saturday.Click image for larger version

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ID:	765010

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                    #10
                    Guess this could happen....Click image for larger version

Name:	tractor4sale.jpg
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ID:	765011

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                      #11
                      That's one of 6 A s I have it's a 1952 we are second owner! Have original warranty documents and bill of sale for it!

                      Comment


                        #12
                        I just laughed at you Hobby, even if you are a Granola farmer you still have an investment into your crop. It is most likely the same % as a real farmer. Im thinking those kids of your friend were not offended, Im sure there dad swears everytime he drives past your weedpatch. When prices go down I invest more into my crops. Lower prices can be beat with big yields on my farm. Nothing like adding a little gas to the fire.

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                          #13
                          Breadwinner, I cannot argue against your claim. I have watched it happen all around me for decades. Just because I dont understand it doesnt mean its all wrong. If it was easy, everybody would do it.

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                            #14
                            I find it so hypocritical that this tune is coming from the very institutions that were tripping over themselves to lend farmers money for $100 rent and $350,000 per 1/4 . And endless leases for guys wanting to run the big show .
                            You watch the Canadian banks will be singing this same tune shortly .

                            Comment


                              #15
                              $400,000 per quarter. The best answer I have heard about the high land prices, " pay interest, or pay income tax, its up to you!! "

                              Lenders encourage borrowing that is their livelihood. Lenders can't lend money if no one is encouraged about their future enough to borrow from them.

                              Comment

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