$78,000,000/67000ac

[bgmb]

=$1164/ac of debt and they only owned 8000ac out of the 67000 they farmed. How is it possible to accumulate that much debt so fast on a farm that is 90 percent rented? obviously lenders and investors didnt do their due diligence.

Happy Easter!!

[bucket]

I was thinking about that the other day. Then I thought it was like the new math my kids are learning and ignored the numbers. There are so unbelievable it's hard to believe no one at fcc didn't lose a high salary job and everyone under him/her.

[bgmb]

FCC probably lent on the land they owned and probably had first mortgage on it.... they should come out ok. Thats a lot of assumptions tho.

[lesm]

The first time I heard Pike speak in Saskatoon, I couldn't stand bullshit spewing out of his face and walked out of the meeting. Too bad so many went down because of the crap he preached.
Obviously, he was became so cocky that he believed in his shit.

[SASKFARMER3]

Fcc im sure had a 1st mortgage on land and is covered. RBC is second on Section 427 and will get theirs covered. All others are going to be shit out of luck.
This is prime example of a shit show that bull shits every one. Lots of flash, big headlines and top management.
MOM POP and sons still the best run but hey we mean F$%K all in the big picture.
This is like the new math.

[bucket]

78 million on 8000 acres.

I could run mine out to about 30 million.

Everyone ok with that?

Lol.

[farmaholic]

Maybe its the new way. Go BIG or go home. You only have to pay the credit back if you have a conscience. Some have so little to lose or haven't signed any personal guarantees. Or somehow filled their pockets before hitting the wall with no concern for the creditors. Farming is a business the normal corporate model doesn't apply to, not enough room for all the leaches, professional fees, pay full retail for everything because no one does something for nothing. Then sell what you produce for wholesale prices. Not enough control for the large corporate model.

Those responsible should be made an example of, that you can't roll the dice(play the game) and walk away leaving others to pay the tab....

[farmaholic]

SF3, imagine how inconsequential I feel compared to some of you guys.

[bgmb]

Even 3 years losses at $100/ac per year plus $300/ac of machinery financed to the nuts is still only ~$600/ac of debt.

[bucket]

I myself like to feel insignificant but no one will buy me out.

Some have tried to cherry pick but it's all or nothing.

[perfecho]

CEO and administration probably took another $300/acre....

[furrowtickler]

The numbers are smaller but the ratio(owned vs rented) is the same for quite a few, it will be interesting to see how things shake out over the next few years. Ideally a farm should have revese numbers.
Too big to fail - lol - every single farm has a tipping point where things start to go backwards. Some may be 2000 ac , 20,000, or even 40,000 plus - but there is always a tipping point that will drive any farm into the ground - that's called not realizing the limits of the environment your in and labor. For investment type farms it's low ROI and top heavy management wages.

[cottonpicken]

At 5 percent thats like a 55 an acre interest cost expense

[farmaholic]

Its the incremental farm size that has to be justified with the cost of machinery and its capacity. Finding a qualified ass(not derogatory) to put in the seat is another issue.

Where are we headed? Some big operations that are supporting several family members need to be the size they are. I think we were able to buy some pretty decent iron with our acres.

I also beleive alot of bigger operators "can" have grain quality issues because of weathering and grain going out of condition because of pushing it in fall. Just saying..

[farmaholic]

Cotton, I did some math on the values being paid around here and you're right. 240k with 25% down @5% is 9k/155 acres is $58/ac interest only. Better be real solid and subsidze it with paid for dirt. Interesting times.... is this sustainable? Doesn't productive capacity mean anything?