How are things on the farm?

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How are things on the farm?

Feb 23, 2020 | 07:17 1 FCC mailout advising of the they will not be increasing the interest rate on input loans until April 15th. A nice gesture but the unharvested acres will not have changed at that time.
At least it’s something’ though , has anyone at other financial institutions had any concessions?
I heard that one of the bigger credit unions recently acquired the services of a lawyer with the reputation as one of the slimiest in the province, guess they are setting up for a different position.
Gotta love big business hey! Reply With Quote
Feb 23, 2020 | 07:56 2 I use this Nutrian Scotiabank line and they give 2 weeks grace which isnt much but something. Reply With Quote
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  • Feb 23, 2020 | 09:19 3 April 15 gives you time to get your 2020 CCGA advance on seeded acres so you can roll the dice one more time.

    Lets them kick the can down the road again (I'm told there was no interest on 2018 advances paid out at the new late deadline of December 2019 even without grain sale documentation)

    FCC and govt don't want to admit just how close to the edge it is for a lot of guys. Reply With Quote
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  • Feb 23, 2020 | 17:09 4
    Quote Originally Posted by Ronski View Post
    April 15 gives you time to get your 2020 CCGA advance on seeded acres so you can roll the dice one more time.

    Lets them kick the can down the road again (I'm told there was no interest on 2018 advances paid out at the new late deadline of December 2019 even without grain sale documentation)

    FCC and govt don't want to admit just how close to the edge it is for a lot of guys.
    Ensures another crop goes in the ground so the leaches have a bit more blood to suck. Reply With Quote
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  • iceman's Avatar Feb 23, 2020 | 18:33 5 FCC was always Feb 15 than the trains didn’t run one year so they extended to mar 15 and left it there. Now you say it’s April 15? I bet they leave it there for next year than.

    At some point the can is gonna hit the wall and fly up in the face. Reply With Quote
    Feb 24, 2020 | 09:17 6 Every banker and input supplier you talk to says the same thing....it ain't pretty out there. Reply With Quote
    SASKFARMER's Avatar Feb 24, 2020 | 13:46 7 It isn’t pretty. We run zero opp and have been cash for last five years it was a goal I wanted for our size of farm. But with crop out we might have to look at going in and saying please sir I want some more.

    Farming what a fun time. Reply With Quote
  • 1 Like


  • Feb 24, 2020 | 15:04 8
    Quote Originally Posted by SASKFARMER View Post
    It isn’t pretty. We run zero opp and have been cash for last five years it was a goal I wanted for our size of farm. But with crop out we might have to look at going in and saying please sir I want some more.

    Farming what a fun time.
    That is being financially prudent. Had you not set that goal, you may have been asking please let me farm another year instead of may I have some more. Reply With Quote
    iceman's Avatar Feb 24, 2020 | 20:43 9
    Quote Originally Posted by flea beetle View Post
    That is being financially prudent. Had you not set that goal, you may have been asking please let me farm another year instead of may I have some more.
    IMO anyone growing the land base +10% per year would not be in that situation. But you decided to grow the working capital which isn’t a sexy topic at the farm shows and now you can weather the storm. Even though you might not like doing it you can still do it with no worries. Congrats

    Iceman Reply With Quote
    SASKFARMER's Avatar Feb 25, 2020 | 08:51 10 I always felt a farm needs a written plan that gets looked at every few months. I bought land when I thought it was cheap. My banker at the time said rent. Yea great advise.

    Now I find equipment outrageous and land outrageous.

    It’s also about looking at the big picture.

    Went and seen a golf course in Florida that was purchased for $850,000.00. It’s going private membership and million dollar homes around. Little fixer upper.

    You can sell lots on 9 holes and still have nine for private use.

    Farming and buying land at 500000 and equipment at a million isn’t making money.

    Rules in canada hurt farmers.

    Crop in the field isn’t fun but it happens ever once and a while. You realize gov programs are useless real fast and don’t help.

    Private insurance show me a check. Reply With Quote
    Feb 25, 2020 | 09:05 11 Can anyone comment on the private insurance and crop left out????? Reply With Quote
    Feb 25, 2020 | 09:44 12 I often wonder what the percentage of acres in western Canada have inputs borrowed against. Reply With Quote
    Feb 25, 2020 | 09:50 13
    Quote Originally Posted by tweety View Post
    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. Reply With Quote
    Feb 26, 2020 | 14:56 14 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%. Reply With Quote
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  • Feb 26, 2020 | 15:09 15
    Quote Originally Posted by Richard5 View Post
    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. Reply With Quote
    Feb 26, 2020 | 16:05 16
    Quote Originally Posted by Sheepwheat View Post
    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. Reply With Quote
    Feb 26, 2020 | 17:09 17
    Quote Originally Posted by tweety View Post
    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? Reply With Quote
    Feb 26, 2020 | 17:24 18
    Quote Originally Posted by shtferbrains View Post
    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. Reply With Quote
    Partners's Avatar Feb 26, 2020 | 17:52 19 Some of our neighbors think they can borrow themselves out of debt?
    Some will never see daylight.
    So they add more acres to try.. Reply With Quote
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  • Feb 26, 2020 | 18:33 20
    Quote Originally Posted by Richard5 View Post
    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. Reply With Quote
    Feb 26, 2020 | 21:08 21 Speaking with the owner of a local independent fertilizer dealer in our area this last fall. He was having a very hard time getting paid for fertilizer. Said he usually has a few people each year have trouble but this year there were a lot more guys asking for more time to pay. Reply With Quote
    Feb 26, 2020 | 21:30 22 Anyone crazy enough to leave money on the books will get burnt
    No credit around here
    All learned in the 80’s & 90’s
    You have fcc , bank or cash Reply With Quote
    Feb 26, 2020 | 21:56 23 North of Moose Jaw Reply With Quote
    Partners's Avatar Feb 26, 2020 | 22:04 24 What crop is he combining? Reply With Quote
    Feb 27, 2020 | 05:40 25 I think it’s durum being cut with a flex header. Reply With Quote
    Feb 27, 2020 | 06:27 26
    Quote Originally Posted by Saskpraireboy View Post
    I think it’s durum being cut with a flex header.
    mouse flavored pasta? Reply With Quote
    SASKFARMER's Avatar Feb 27, 2020 | 07:19 27 No problem if it is you can clean it move on.

    Guy is trying to get crop off when all levels of government don’t even acknowledge what the harvest was like.

    Boboo is still studying.

    Are we run by complete ****ing morons. Reply With Quote
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  • Feb 27, 2020 | 09:11 28
    Quote Originally Posted by SASKFARMER View Post
    No problem if it is you can clean it move on.

    Guy is trying to get crop off when all levels of government don’t even acknowledge what the harvest was like.

    Boboo is still studying.

    Are we run by complete ****ing morons.
    No, just crooks who have changed the rules over the years to avoid as many payouts as possible. Reply With Quote