Creditors

[GOODRUM]

Just wondering how everyone is being treated?
Everyone I talk to admits there is a cash flow problem but won't budge an inch .
Have a advance on 2013 malt that hasn't moved yet , advance is due on the 30th and if it's not paid off it goes into default . Once that happens there will be no 2015 advance. If malt was gone it wouldn't be quite so bad but no grain cheques AND no advance.
What a guy supposed to do?? Hind sight would be get out of malt contract and dump it for feed , advance covered and go another year. To late now , it seems everything has to be booked 6 weeks ahead. What a f***** mess!

[BTO_farmalll]

Protection

[furrowtickler]

Goodrum , you are not alone

[BTO_farmalll]

Haha,

Just Kidding. But Seriously Bro, I Wouldnt Worry About It. Big Deal It Goes Into Default, You Already Got da Money. When You Get The Money 4The Malt, Just Plow it Back Into da Farm. New Crop Will Be Here in 4 Months. Pay it Off Then. Only Thing is Yous'll Be Payin Interest on the Interest Free Portion @Prime Plus 3%. Once Money is Paid Back Default is Removed. I Dont Use it Myself, Just Helping Out In These Desperate Times of Need!!!!!! Pour Yerself a Stiff One, Yer Gunna Need er'!!!!!!!

[SASKFARMER3]

Some challenge on here their is no delivery problems their blind. Your not alone it's one rough spring and summer on its way.

[farmaholic]

What irks me is the smugness of some who say people never planned their cashflow needs properly. HORSE SHIT. How the hell is a Producer supposed to manage their businesses when they can't deliver against their contracts? Don't give me the B.S. about living too close to the edge, properly made management decisions can't be executed because of other's arrogance and incompetence.

If (at times) Mother Nature isn't enough of an uncooperative force that can pick winners and losers, now Industry has it's boots on the throats of those they are supposed to provide services to and yet others reaching further into the pockets of their customers.

Ag in Western Canada is so ****ing dysfunctional it isn't even funny. Once again, never have so many benefited from the efforts of so few.

Open market? More like open season....

[PrairieDude]

if you need march cash flow sell for dec or jan. Learnt that the hard way with specialty canola oils. Good luck to all patiently waiting

[ajl]

Basically BTO is correct. In this situation you pay the loan back with cash and interest at prime 3. Had this happen to me. You have to deliver the grain within the period specified and if you can't they do not care.

[riders2010]

Maybe there is an old video from one earth and broad ass on how to properly market crop. We re so stupid us dumb farmers.

[cottonpicken]

That's how they got us constantly forward pricing means we are constantly shorting and driving down the price.

If any egg head wants to argue that fact i will pistol whip the shit out of you.

And guess who capitalizes?

[cottonpicken]

Its kind of comical in sense of how weak we have become.

I'm sure a lot here have generational stories of the men that fought this fight to bad we all turned into a bunch of sheep instead of the wolves our fathers,fathers,fathers where....to bad

[hobbyfrmr]

Farmaholic that is the best description i have heard to date. Im pretty sure farmers know that they have to time sales according to cash flows which used to work. More than ever the disfunction is at the railroad and grain companies' incompetence. They pass it all down to the farmer so there is no need to improve, there is no physical cash penalty to them.
As cotton describes, we are now forced to forward contract just to make sales which basically gives the companies secure and relatively predictable supply, removing volatility and farmer profit.

[hobbyfrmr]

Back around 1985 or so a local was expanding, he was "overpaying" for land at $1000/acre. The farming neighbourhood was quite sour about his increased purchase prices, they said he would never make it. Fast forward about 20 years, I quizzed him a little about how he managed debt. His theory was " don't worry about the money you borrowed, let the ones who lent it to you worry about it!"
I never was able to adopt that philosophy. 2 years ago he sold half of his land for $2500.00/acre. Now he's around 75 yrs old and farms 8 quarters with all brand new machinery.
I think that's pretty good.

[GOODRUM]

Well said cotton , sheep is a good description.
I signed advance papers, malt contract well virtually every paper pushed in front of me which I assume the responsibility of Mother Nature , grain companies, rail roads and every one else getting a peace of the pie, all without any mention about my expectations and consequences if they don't fulfill there obligations.
What are we thinking ?? Why are we responsible for everything that can go wrong?

[GOODRUM]

It's becoming more obvious we are the ones being farmed, were the ones being raised for profit .