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Positive Friday "Canadian farms may have debt advantage over US"

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    Positive Friday "Canadian farms may have debt advantage over US"

    Fewer farms means fewer bankruptcies but with that simple equation comes the realization that the size and tone of those bankruptcies in North America is growing. "They are larger, the amount of debt is greater, the fact that we're not seeing a higher number doesn't mean there isn't considerable distress out there," said Todd Langel, a lawyer with Faegre Baker Daniels in Des Moines, Iowa.
    The U.S. producer has gone through a relatively recent period of profitability due to higher prices during the last cycle (five years ago) and that has allowed some producers who don’t have quite as sharp a pencil to continue,” he said.

    The competition for North American farmers is also getting tougher due to cheaper production costs in South America.

    However, Langel said Canadian farmers may have advantages over their counterparts to the south.

    “I think that a number of Canadian producers are larger and have a greater degree of sophistication in some of the operations that may give them an advantage,” he said. “They also may pay more attention to risk management strategies.”

    As well, he said more farmers are using corporate structures or limited liability companies to define their operations.

    This may work to their advantage, but it also tends to muddy the true number of farms that may actually be going under, he said.

    “They may be using organizational methods that don’t tend to get put into bankruptcy.”

    According to Langel, what can often occur is the farmer may choose to simply dissolve the corporation or LLC as opposed to putting it through a court-monitored restructuring process.

    Really interesting speaker.

    But most banks get the produce to sign personal guarantees so his wife his daughter his son his dog all are responsible if the shit hits the fan.

    Happy friday

    #2
    So it is good that here in Canuckistan, almost all the smaller farmers have been driven out of business already. In the US they still exist and add some life in rural areas. Here in Canuckistan support programs such as crop insurance and Agri stability are designed to subsidize Hutt colonies and large operations so that they can eliminate smaller competitors and according to this guy that is a good thing. Actually farm debt is a bigger problem here since we have farm debt on non productive assets such as milk quota. The only thing that makes that seem like less of a problem is size.

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      #3
      Putting in a plug for larger and commercially oriented farms as opposed to smaller and way of life ones.
      Urban people and others who buy most of their food have a dependable and often more economical food source in the present production and delivery system rather than taking a step back towards a subsistence farming one.
      Remember making same argument a long time ago to a group of elders who wanted governments to do more to support small farms.

      Comment


        #4
        Maybe someone didn't read the thread about the local carrots in the local coops.....

        I call bullshit on government policy to make larger farms.....
        Last edited by bucket; Nov 26, 2017, 10:46.

        Comment


          #5
          Have seen first hand in own community where government small farm policy encouraged new entrants to try farming and eventually go broke.
          Thinking in particular of Sask Land Bank.

          Comment


            #6
            Never ever bring back that useless land bank or NDP helping their own get bigger program. Geared to only NDP members.

            Comment


              #7
              Originally posted by SASKFARMER3 View Post
              Never ever bring back that useless land bank or NDP helping their own get bigger program. Geared to only NDP members.
              yea , they didn't even try to hide it here , 100% was given to loud NDP ers

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