Meeting on Friday was very interesting. Yes the NE farmers had lower yields way lower. But funny the guys in West and South sure have a bounce in their step. It was nice to see, really nice and I am very happy for each and every one.
Now my Financial side comes out.
First comment from farmers in room was why aren't their Canola testing facilities in SW part of Sask. The guy was serious. Seed department explained they are concentrating on areas where production has been for last 40 years. No plans yet.
Then Young guy beside us was talking how he will push his canola to back to back on most of his farm in 2011. Profit his comments (600 div by 12 = 50 cost grow 350 leaves 250 profit).
Simply we learnt this year how mother nature rules the roost in NE.
Started early then she took us out.
Now here is my comments.
Insurance is not available to cover $350.00 acre inputs. (350 div 9 = 39 at 70% that's almost at 60 bus 10 year average, SW growers wont have that)
Second back to back canola opens up a can of worms. Alberta has club root look where it is around Edmonton. Longest growing area of canola next to melfort. Growers their did push rotations. Do we want that.
The canola belt is parkland for one reason and only one reason. Cool nights with moisture. SW and South 5 to 10 cel higher temps in summer. Week of these temps and 50 is now 35 longer its 20. Again mother nature rules the roost.
Third how many when their doing their budgets for their lenders will have 50 plucked in for most crops.
Another comment came form a older farmer (not me) how in 2002 he put every thing into his crop (credit was easy cargill gave him 1,000,000.00 credit) The best crop every was on way conditions were perfect his agrologist was flored at how well things were progressing, early yield reports were for largest crop ever then it froze to -5 to -7 for 8 hours. Now what insurance covered that year $485,000.00 minus premium equals $447,000.
Now what Cargill got paid all of crop insurance he had to short change and negotiate with all others. Sold land and down sized. Simply he said he survived but took on a whole new attitude. Simply PS on what all the advisers are telling you and shoot for a average crop in bonus year you'll do really good and in poor you'll survive. That was his comment survive. He ended with its amazing after following that for last 8 years he was now money in bank bought back some of his land and now income tax is a huge problem but boy was he happy. No stress.
Toughest place to grow grain on the planet is where? You guessed it Western Canada. One shot, No mistakes!
But with all seed sales happening Canola will be all over the west some will win big some will loose. That's farming, know your area look at long term yields and don't over spend. Simple.
Now my Financial side comes out.
First comment from farmers in room was why aren't their Canola testing facilities in SW part of Sask. The guy was serious. Seed department explained they are concentrating on areas where production has been for last 40 years. No plans yet.
Then Young guy beside us was talking how he will push his canola to back to back on most of his farm in 2011. Profit his comments (600 div by 12 = 50 cost grow 350 leaves 250 profit).
Simply we learnt this year how mother nature rules the roost in NE.
Started early then she took us out.
Now here is my comments.
Insurance is not available to cover $350.00 acre inputs. (350 div 9 = 39 at 70% that's almost at 60 bus 10 year average, SW growers wont have that)
Second back to back canola opens up a can of worms. Alberta has club root look where it is around Edmonton. Longest growing area of canola next to melfort. Growers their did push rotations. Do we want that.
The canola belt is parkland for one reason and only one reason. Cool nights with moisture. SW and South 5 to 10 cel higher temps in summer. Week of these temps and 50 is now 35 longer its 20. Again mother nature rules the roost.
Third how many when their doing their budgets for their lenders will have 50 plucked in for most crops.
Another comment came form a older farmer (not me) how in 2002 he put every thing into his crop (credit was easy cargill gave him 1,000,000.00 credit) The best crop every was on way conditions were perfect his agrologist was flored at how well things were progressing, early yield reports were for largest crop ever then it froze to -5 to -7 for 8 hours. Now what insurance covered that year $485,000.00 minus premium equals $447,000.
Now what Cargill got paid all of crop insurance he had to short change and negotiate with all others. Sold land and down sized. Simply he said he survived but took on a whole new attitude. Simply PS on what all the advisers are telling you and shoot for a average crop in bonus year you'll do really good and in poor you'll survive. That was his comment survive. He ended with its amazing after following that for last 8 years he was now money in bank bought back some of his land and now income tax is a huge problem but boy was he happy. No stress.
Toughest place to grow grain on the planet is where? You guessed it Western Canada. One shot, No mistakes!
But with all seed sales happening Canola will be all over the west some will win big some will loose. That's farming, know your area look at long term yields and don't over spend. Simple.
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