Equity Needed by a New Farmer

[furrowtickler]

Good posts, zeeman stick er out. There will be alot of opertunities within 5 years. The overhead on some of these farms will crush them eventualy.

[rook]

Charlie I'm not going to give you a dollar amount number because there are too many variables. Instead lets compare with other industries:
- you say your new enterprise doesn't want off-farm income. If we compare this with the city, usually both parents work. So why shouldn't we allow off farm income in this scenario?
- farming would be classified small business. In general, most small businesses are 'overnight successes' that were 30 years in the making. Farming is no different.
- there are many family business experts out there who say that the third generation of family businesses is often when the wheels come off. I've seen this with my off-farm cousins and friends in the city. There are also lots of third generation farms out there where the wheels may be about to come off too. It takes a different skill set to start a family farm and pass it on to your son(s) than it does to manage a huge affair with cousins, spouses, urban partners, divorces, and millions of dollars up for grabs...

bottom line, most economists or consultants would lump all grain farms together because they're in the same industry but in reality there are as many different business models as there are farms. And I think there's room in the marketplace for all of them, including brand new start-ups.

[uneducatedbum]

If it was easy, everyone would farm.
It's a great life. Can't imagine
anything better...now.

Now, I'm not sure anyone here remembers
the 90s but high interest rates and low
commodity prices aren't fun. I would
have loved the opportunity to go work
off farm then...but there weren't any
jobs. We weren't thinking about paying
off the farm with our next crop, we were
just trying to pay our next bill. We
battled through it caught a couple
breaks and now we have something but it
took time and it wasn't easy.

My advise, get in now, get as much fixed
interest rate debt you can, klench your
buttcheeks and hope for good weather.

[zeefarmer]

hobby,

Already have a rental property. Nice little 2 story townhouse that my wife and I used to live in before we moved to our current location. Have tried to sell it, but people backed out the first time, and the second time the couple separated during the process, and now the single mom is renting. She would like to buy but can't get a mortgage on her own.

That being said, I don't like renting it out. We have had excellent renters (people we know well) but it is a hassle at times. We are renting it for about 60% of what we could be renting it for. It is paid for and the bills are covered by the rent. I could and want to use the equity in there to put towards land or machinery, but the lady is going through a messy divorce and I want to help her out as much as possible.

I guess that is why I find current situation frustrating. I want to get ahead and go hard towards the goals and dreams I have, but there are alot of people that are alot worse off than I am. I want to be able to help others out, not to be strictly focused on or handcuffed by debt or the obligations that come with it.

[Burbert]

Why wood, why wood, anyone want ta farm?
Makin money is easy nowadays. Get a
education do somethin. F'k farmin, its no
good, unless you like been diddled, cousin
everbody is doin it ta ya all the time.
Different strokes though fer different
folks, some like lottsa pain in their
life.

[Hopperbin]

To WD's post I am asking myself that question every day. I made more money last year than I did 10 years ago in 4 or 5 years time period for perspective. So the guy taking over at the higher price at todays prices with an average crop will likely make great money compared to what I was over that 20 year average time span. Having a few more things written in agreements would be a good thing these days. Such as matching the highest purchase or rent offer. Then again since he did not rent to the highest offer, that agreement may be useless. I could even go to the new renter and ask if I could still match it. I can only counter why I did not pay more is that I am making a very good living even without it as did purchase quite a bit as far as I am conserned in the last 10 years, also it was not offered to me at that price. Who am I working for, For 2 exes? For kids? For Myself? Questions questions. Some cannot be answered. Its a 10 percent reduction in my acres. I am at that age, should be done expanding, don't have the kids to help or take over at the momment so that is an issue. Also enjoying seeing my loans finally getting paid down and having the options of not purchasing the biggest newest and double the harvest iron that I need.

[Burbert]

Why wood you farm? Ya wanna bee like your
Dad, noble butt your dad probably thinks
that you r a very foolish yunun er that ya
thinks hees gonna give ya his place,
sometime in the future..........

[Klause]

I'l llet you know.

We are starting a farm in SK from
scratch... as in... still running the MB
farm at the same time

Is it possible? Yes. Can everyone do it?
No...

BTW, Hopperbin, when you have some free
time, give me a call, 306-


I've been hauling gravel to BHP 16hrs a
day for the past couple of months, and
haven't had days off... thus haven't
been on here much if anything.

[Klause]

woops... (306) 367-4920

[hobbyfrmr]

Zee,

I can sympathize with the tenant lady but do not
get dragged into her life. One way to dissociate
yourself from the personal side of being a landlord
is to hire a property manager. They take a fee of
course, but they collect the rent and evict if
necessary. It takes away the personal side of
maximizing a return on your asset/investment. I
know it's crude, you can help this tennant, but
maybe not the next one. Look into it for the future,
just to know what services they can provide at
what cost.