Notice to Creditors

[sumdumguy]

I wondered if FCC was backing these guys. Now I know. Lots of farmers, too. Its funny how they fall for the big flashy new guys in town. There's definitely a limit to what is manageable. You gotta know when to hold em- know when to fold em. Know when to walk away- know when to run. They should have asked Kenny Rogers.

Its tough enough to farm small, but much tougher when spread out all over Western Canada.

[bgmb]

Wouldnt they just walk away from the durum contracts. Then the us elevator would have to try and take them to court for damages which would take quite awhile and there is a pretty good chance they wouldn't bother trying to do that.

[SASKFARMER3]

The mission statements of these kind of companies makes me laugh.
P

[sumdumguy]

What about machinery leases, are they not creditors?

[bgmb]

the guys with land as security will get their money. guys with machinery will gt most of their money and the rest are probably going to get screwed.

[dave4441]

US companies would be the first to go to court.

This doesn't surprise me at all. Gary just keeps going round and round. Amazes me.

[LEP]

Interesting to see the average rent was $35 per acre, but they paid $2,750 average for the land they bought.

Are they renting Grand Coulee or did they buy it?

[Kodiak]

Predictable from day one. Amazes me too. Pike repeats this performance with a bigger show each time, and the hubris that goes along with it is nauseating. At what point does this kind of behavior become toxic to the industry? I suspect those of us who conservatively manage our businesses will all pay because of this.

[farmaholic]

The assholes at the top who walk away after receiving big salaries should be responsible. Creditors who did business with these guys only "because of who they were and the size of the account", do I feel sorry for......not so much. All the while ignoring the smaller rock solid accounts. If you want to catch the big fish, be prepared for what could happen if you do.

As I said, the reality "cheques" are having an effect and taking their toll.

[hobbyfrmr]

Everybody loves a winner. It's human nature. Really, do you want some schmo dressed like a scarecrow with one 15 year old outfit running over your land,for 10 days or 3 new Deere Hawks doing it all in 2 days?
I always found mr. Pikes presentations pretty sharp with SCIC, agstability and how to cover risk.
There will be a few disappointed retailers and machinery suppliers, but I'm pretty sure when it comes to real cash in the bank, the Pike family will be fine.
The bioard should have chosen to blend/deliver junk durum, taken the loss, collected crop insurance and Agstability.
Over winter they could work at qualifying for input capital streaming finance. Put the entire farm to canola baaaaaaby ! All the cool kids are doing it.

[malleefarmer]

www.ppsr.gov.au

I have my grain listed

[mbratrud]

I'm sure the rest of the story will emerge. Whether they just succumb to adverse conditions, or a few milked the system and walk away happy. Maybe simply a retooling and they will be back.

It's obvious though the more arms length a farming operation gets the less profitable it becomes. The core of any farm IMHO really has to have their heart in it. It's a tough business.

It's the one thing that cannot be replicated and multiplied as any farm grows to massive proportions, the passion and dedication to the farm by the players involved.

For farms to survive they need people that will work erratic hours be innovative and have the ability to problem solve at every level. The further you get from a key core (family/ owner operator) the less heart is in it.

Interesting times

[Hopperbin]

Were they doing input business with one supplier? Just thinking could be some risk purchasing pre buys from their Input supplier.

[dave4441]

I don't think this is about a durum contract although may have been a final straw. They we're bleeding cash and losing money from day 1. I think they just kept spinning this thing for more and more investment and was basically a short Ponzi scheme. Gary was so excited to be the biggest this hemp grower in the Americas or the biggest chickpea grower and he thought that gave him market power. His thoughts are actually laughable and his ability to manage risk looks to be zippo apparently. I doubt he comes out of this one as a farm operator.

Who in their right kind has the operational capacity to farm 200,000 acres but actually only farms 65000. It's just stupid.

[sumdumguy]

He needed a grain dryer or two.