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

[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.

[husker]

Your not going to be the only one in this boat. Just make sure you take care of yourself and your family. The iron is just that just iron. and communication is the key to dealing with any of your lenders

[skhadenuf]

Gotta agree with Bucket somewhat, here's some irony for you, I see cropinsurance is advertising jobs for Ritz's Cais. Get a job there you'll know more than most of those that will be your boss but what the hell every second friday money in the bank, will likely net more than many farmers anywhere will this year. You can hear your supreme leader Ritz proclaiming in the media all the millions for agriculture and you will look around at the hundreds of comrads working at you Cais office and realize where it's going to. Then some young farmer will call you up after he freezes out in august next year, explaining just the same things that happenned to you, you will sympathize and truly understand try to juggle the numbers in his favor but in the end you will find piss all for him. This as you sit back in your leather seated chair sipping on a latte, thinking I am glad I'm not that poor bastard anymore.

[vvalk]

Just wondering how you can afford to pay 35% or more tax on buying land when you can pay 14% as a corporation.

[mbratrud]

I disagree Bucket, no matter what you do adversity will be thrown at you. Farming is a good lifestyle and career. There is always going to be bumps in the road no matter what you do. I have worked off the farm and now I farm and work, sometimes its frustrating as hell but most of the time its extreemly rewarding. If you are putting your families well being in jepardy thats one thing but if you can see yourself and family through the adversity it makes you stronger.

[parsley]

Just IMHO. Some of you will get your hackles up again when you read:

IMHO, Money is going to be hard to get.

Banks and lenders are quietly scaling back loans, and carefully assessing clients. They don't have to loan you money.

Interest rates will rise.

The most important tool you will have for a successful farm, is your credit rating. Your character.

Both will be based upon your ability as well as your history in repaying a loan. The amount of effort you go to to repay and make payments. Your deception or your forthrightness. Your manipulation or full disclosure. Your degree of tantrum-throwing will be noted and graded.

Your past finacial habits will either keep you in good stead, or come back to haunt you.

And not just one bank will know your habits, but each bank will know them.

You may attempt transferring, numbered companies, defaulting, bankruptcy, hiding sales, deception, but this is a new era, and I again say, your best tool for farming is your credit rating and your character.

Look at Sask. Producers' net income in the last 3 years:

2007 2008 2009

Farm Market Receipts 157,228 199,314 188,847


Program Payments 18,159 14,159 20,221

Farm Expenses 143,288 178,034 166,539

Net Operating Income 32,099 35,438 42,529

Without Government Program 13,940 21,279 22,308


Play banker, and read that last line twice.

That's the average farmers money left in your pocket less the Government subsidies. Most of you on AV are average farmers. Most farmers are obviously not financial geniuses, either.

Governments don't HAVE any money to give you. They are going to cut back still further. Even on pension plans.

So as a banker, I see you sitting there asking for a bunch more money, and I'm looking at your bottom line, I ask how in the world are you going to pay it back if it freezes early next year?

Now, I will talk twice to the guy who shows me he will add a little income, however he can. jobs are not beneath him. It's called good faith. It's good-intention. Something called character. He's maybe got two kids and made the average $22,308 last year, but he's got squat this year, but he's game.

And he's the guy who won't cop out and leave the local mechanic and the local grocer and the local hardware store big bills, when others bankrupt their debts as a practical measure, some will even try transferring funds to Brother Harry in Detroit when the banker pipes his payback time tune.

I cross-examine a few bankers now and again, but they sure are a different kind than the ones some of you boys think you will be dealing with.

For any young fellow,with a heavy debt load, I will reiterate what I believe to be the most important farming tool you have:

Guard your credit rating and your financial integrity.

And let your banker know you don't believe the rest of the world owes you a living. IMHO.

Pars

[parsley]

Should read:

however he can incorporate a few cutbacks, at the same time as showing cash-flow part time jobs are not beneath him