Interesting read about Sheldon Zou, Andy Hu, Maxrop

[hobbyfrmr]

Farmaholic, at first it was sarcastic, but by the time I finished, there is truth to it.
I think there is a living salary in advising/consulting new immigrant investors to get them up and running.
I also think there is a living in the business model of doing the custom work for these investors. A person owns decent equipment they use the provincial custom rates guide as the fee for service. They can "farm" without land. It was being done. I do think big farmers retire millionaires. Why else would they do it? I see a pattern, that these guys go to it with eyes wide open. Hitter hard for a decade and be cashed up by 45-55 yrs. old. No more of this farming until your 80 baloney like the grandparents. Just like a working man the goal is freedom 55 then enjoy life.

[hobbyfrmr]

I am not for, or against these things. Just an observation of patterns in ag. This is one business model that has been chosen and utilized. I am aware of the end goal, just never been privy to the real end result.

[phoenix64]

hobby, the whole custom idea from preseed burnoff to hauling the grain to terminal (and everyting in between)won't fly to expensive to the investor/landowner. They will continue to rent out to whomever can pay the bill and when that dries up they will sell. Never seen custom work catch on big time in any area with the exception of harvesting on the great plains, though mainly in the u.s.

[hobbyfrmr]

Phoenix, I half agree with you. I also think
"maybe this time it can be different".
Negotiated fee for service, signed contracts,
custom farming for the new landowners until they
can do it themselves.
There is some decent money in custom work.
Lots of guys make extra machinery payments by
doing custom work around their neighbourhood.
In my area there was a retired farmer that sold the
farm then bought a 10 yr. old Gleaner N7 with a
pickup and 27 ft straight header. He would have
one steady contract, and in the tough weather
years he would be hired as a extra capacity for
others. He would net anywhere from 25,000 to
37,000 before taxes. Doing something he really
enjoyed. He was reliable, and he could repair any
color combine in the yard.

[phoenix64]

hobby i totally agree with you for the custom business operator it is nothing but good cold hard cash, but if you walk a mile in the landowners shoes he is far better off to rent out the land, no fuss no muss. Or if he is an owner/farm operator he is not going to rely on a custom operator that may or may not show up on time, canada with all our spring seeded crops is a very short time window for any operation done (seeding, spraying, harvesting), not like the u.s. winter wheat region where they can take their crop off within a big time frame, their only worry is hailing out if their short on insurance before cutters get there.

[hobbyfrmr]

Agree no muss, no fuss. Rent it out, then, watch and learn from the professionals.

[phoenix64]

detecting a hint of sarcasm hobby? don't like fellas renting land? if so why? maybe ur worried that if they have right of first refusal u won't get a crack at it when it eventually goes up for sale.

[Daylate]

Laast right of refusal! Not first
Keeps u out of the bidding or figuring out what to
pay. Just match the best offer in the end, or be a bit
above.

[phoenix64]

just so we know that were both on the same page daylate, i have been thru this a few times!------Right of first refusal (ROFR or RFR) is a contractual right that gives its holder the option to enter a business transaction with the owner of something, according to specified terms, before the owner is entitled to enter into that transaction with a third party. In brief, the right of first refusal is similar in concept to a call option.

[hobbyfrmr]

Phoenix, no sarcasm that was literal. If I was a
new investor in the area, I would learn by
watching the professionals. When I use the term
professionals, I mean people that do the work to
make a living at it. They live off the farming.

I like fellas renting land. There is 2 sides to every
coin. Some lower assesed vs. mine land is cash
renting nearby for $114.00/acre. I LOVE that. The
first $120.00/acre offer to rent my farm gets the
contract. That is some sweet money for no risk,
no fuss, no muss. No sarcasm.

[phoenix64]

I agree, thinking if those rents started hitting my area and i could find a good reliable tenant with an excellent balance sheet and at least a 5 year lease i would park my equipment and take a leave of absence!.....but wouldn't sell my iron in case the whole thing heads south.

[SASKFARMER3]

Hobby check the guys balance sheet near
Regina.