Broadacre and Wigmore

[farmaholic]

Freewheat, it would be interesting to hear FCC's response to your comment. Who was the bigger risk? I'd have to re-read the Price Waterhouse document, but didn't FCC step up when ScotiaBank stepped back? ****ING DUH!!!!!

[farmaholic]

My bad, it was MetLife. Page 6 paragraphs 19-22.

http://www.pwc.com/en_CA/CA/car/broadacre/assets/broadacre-002_110514.pdf

[sumdumguy]

I figured FCC would be so gullible. They see dollar signs in their eyes and go ga-ga-goo-goo. I hope they took enough security so other farmers don't have to pay for their mistakes.

[TOM4CWB]

It looks to me that AAFC doing an audit caused a repayment of $477,694.11 for Wigmore 2005 and 06 crop seasons request for overpayment. Then 3 days later FCC put the loans into their 'Special recovery group.

Bank of Nova Scotia started the whole cash flow crunch last summer demanding CPS bills be paid 'early'.

The millions of short term US $ denominated loans... at 20 percent interest... and currency loss close to $2M from those management moves all insured this collapse.

Very interesting reading from a risk management perspective... this is required reading for farm managers who want to see what taking risk can do to a farm...

What a story is told.... enough financial pain for 100 farms... 65,000 divided by 100!

This farm was Never profitable... WOW

[hobbyfrmr]

But.....they had a nice mission statement, and managed to impress so many! . You might say they were the " darlings" of the communities they did business in.
I wonder what the list of creditors are thinking now? I think shareholders are stuffed.
There is a list of about 20 creditors on schedule 1 in the document who may see some money. The Ulrich guy took a mortgage, he may end up with land and building assets. Boyce used a GSA so not sure how that goes, probably just thrown in the mix with the others.

[wmoebis]

We are always told to lock in marketing profit margins. What market plan were these guys following?
Not that it makes a dif to me bit would be interesting to hear from their point what went wrong so others don't follow. No matter what size of operation you are.

[farmaholic]

Could someone clarify paragraphs 24&25 on page 7 please. Too much legalese for me.

Did FCC assume(buyout)KU Farm's loan to Broadacre?

[farmaholic]

Is he still on the "Speaker's" circuit?

http://www.infoag.org/speaker/3/14870/

[bgmb]

This one will hit them where it hurts the most, ego and wallet. when they started this thing I guarantee the thought that they would go broke never even crossed their mind.

[bgmb]

I wouldnt have done what they did and couldnt have even if i wanted to. Athe same time remember that at the end of the day these are people with families and I dont think they were out to screw people out of money. Probably made lots of people lots of money over the years bit off way more than they could chew this time tho.

[MBgrower]

Wow, FCC sure looks to be the fool. Wonder how many heads rolled over this faux pas. Oh well, i guess us litle farmers of 5k and less will pay for this in the long run.

[tstep]

Feel sorry for the small businesses and small land owners that got hooked into this scam but I have absolutely not pitty for these ****ing assholes that figure they have to farm the world. And Heads should roll at FCC for supporting this scam. Took a marketing course years ago that Pike was the teacher and I thought he was full of shit then.