A little bit panicked, need advice. PLEASE HELP!!!

[SASKFARMER3]

That last line should have read U of S. Hang in their. Also redo your plan if you get 4000 bush of canola off. Talk to any family or friends you have. Don't keep it in it will eat away at you till spring. Its hard not to get down on your self.

[cottonpicken]

Actually,this could be the most important thread in the history of agri-ville.

Would it be better to be incorporated?
We still have the home quarter is safe rule?
Sell assets to family now to protect them in the future?

I think maxing out unsecuritized debt(like credit cards) and paying important(securitized) debt off makes alot of sence.
Not rental debt,more land would help i would think.

Lots of questions.

[oldjim]

Hello, new guy here. After reading this thread my first thought was "yeah, been there". Second thought was maybe add something to the advice already given. First thing to do is be up front with your creditors. They may say some things you might not like to hear but they'll really get miserable if you start dodging them. If you are dealing with a bank go talk to Farm Credit. They've gotten way more lenient these last number of years including interest-only loans for young guys. They don't two-bit you to death with service fees like the banks do. You have the advantage of having a good credit history so any reasonable creditor should understand you're not trying to duck out, it's due to circumstances beyond your control. If it's any consolation you won't be alone in your predicament this year - lots of established guys will be hurting too. If you don't have livestock to look after in the winter you will need to find some kind of job to get you through the winter. If you're near a large centre it will be easier but there's lots of work out there, especially if you're in Sask or Alberta. You might not like the job but you got to eat, and remind yourself that it's only temporary - unlike the other poor shmucks that are stuck there forever. Go talk to crop insurance. In Sask at least, you have to notify them by Nov. 15th that the crop is going to be out over winter and your coverage will be based on whatever you salvage in the spring. Don't expect a crop insurance payout before spring, I'd bet they're going to make everyone wait until the crop is either off the field or totally wrecked. I hope you can get through this, there's not too many young guys stepping into farming. It's not going to be easy, it never has been. But if you want it bad enough you'll get through it.

[dfarms11]

Cotton, you have to be very carefull with selling assets to family members. Creditors can not only come after you for the money, but can involve the ones you sold the assets too as well. Just be carefull with this one. Most definitly the idea to run past a lawyer!

[skhadenuf]

Let's hope you don't need to but, I disagree a bit with skfarmer, in the case of farm debt and farm land board, any neighbor that has gone through them has found that they can help but after you do that process you will find it very difficult ever to get credit again as that question is on nearly all applications. They have also told a few guys to declare bankruptcy that sounds easy but ruins you for life. I know a few that did who to this day regret it.
Try to negotiate repayment plan but be realistic what good is February March if you have no crop off you're not gonna harvest then, and negotiate on the lowest amount which is your crop insurance guarantee remember the premium comes off and likely there will be a fight over the crap's value in the field but that 's another issue. You also have to live on something so even with another job take care of the basics first. Most lawyers will give you a free consultation first. Ask what creditors can do and can't do to you. Time is the thing you want to buy yourself and be honest with the lawyer that that is what your goal is and that your resources are limited, A letter or two to an asshole creditor from a lawyer may buy you until spring. Until you have snow on the ground harvest is still possible so don't let your creditors think you have given up, AND DON"T GIVE UP!! It's not you it's the system that's screwy. You won't get piss all from CAIS because you have crop in the field and crop insurance.

[SASKFARMER3]

SK my advise with FLSB or FDRB phone and talk use them in last resort. AGAIN USE IN LAST RESORT. Then Lawyer. Also advocates not really worth it stir pot like a bad divorce.
Also one other thought find out what they have as security over you. Most banks have Basically all even first born. ha ha ha. Lender for equipment is probably Purchase money also watch credit unions with FILP (Farm Improvement Loans Program) They get paid out your dealing with Fed dept Worry. Machine companies will forgo a payment one but give a plan you can achieve don't say ill miss the Dec if you know you wont make the May. ETC ETC ETC> Notice one common thread PLAN> TALK>. Also if you do a Consolidation Loan realize its not purchase money any more and now they have every thing. Gets payment smaller over time but risks are their if repeat of 09. Its a new game Read up on Internet about the rules and regulations google etc. You'll get through it but some hard times ahead.

[SASKFARMER3]

If your a Corporation you give up alot of rights. Good for Accountants but for farmers who face finacial problems OH BOY> IT GETS INTERESTING> OH BOY.

[mbratrud]

CP has a good point about incorporating. If you are in a strong equity situation $400K Net Worth in your farm, roll into a corporation, by setting up new loans in your corp you get to determine when your first payment is make it Oct 2010 buying yourself a year. Set up an operating line of credit to help get throught the winter. Of coarse when you go to your banker your are going to have to be alot more optimistic than the tittle of this thread! If you have a strong balance sheet leading up to this and haven't missed a payment the bank is going to work with you.

[mbratrud]

Agree with SF3 that's why you need to be fairly strong when your form a corp.

[bucket]

If I knew then what I know now - get a job and don't come back. Farming at its best is a thankless job. FARMERS ARE NOT GENERAL MOTORS, CHRYSLER, OR BOMBARDIER!!!

Freewheat - You have shown that you are committed to what you do. No one from government, the cwb, the consumer gives a shit about farmers. Take your hard working ethic to a job that will reward you accordingly. This next year crap is bullshit.

For those of you who are asking why I say this - just being the devils advocate. Gotta hear both sides to make good decisions.