RB auction

[mcfarms]

sf3 is right we are all real estate holding companies when you get to it Re,the comment on corps and cash if a incorporated farm has more than 10 percent of its book value , land machinery etc in cash ie a farm worth 3.5 million can have 350000 in cash after that if cra looks at you that theycould deem you to be non active and your income would be taxable at a much higher rate or at least thats hows its been explained to me .further to that if that same corporation gets to a book value of more than 10 million they are taxed differently or has retain earning of again 10 million it affects the smalll business deduction limit which is currently based on income limit of 500000. might have got it wrong but think Im fairly close. where it really screws you is if you are a renter trying to save to buy land because your book value is low and yet you may have a couple bucks saved to buy land someday. the govt wants that money moving its call velocity that way they can take a piece of it every time it changes hands. their whole savings thing they preach is bs. cause they punish you for trying to save.

[MBgrower]

Agree with sk3 if you can sell for millions why not sell it. Youll never have to complain about grain and input prices ever again. Lots of younger people wont want to run a 10 or 20k size farm especially if we go thru a long downturn in commodity prices.

[freewheat]

Contrary to popular belief, big farms get into trouble too. Look at Illinois family farms in the states.

A neighbor here farmed 16 000 acres and passed away a while back. Out of 6 combines, one made it to the auction sale. Very little iron was even close to owned. When it all shook down, it had all been a big facade. The 2004 frost had sucked the life out of his farm, and recovery was impossible. He was a VERY smart operator, a very nice man, and grew good crops.

We all can struggle, big or small, it does not matter a hill of beans.

My point is, assuming that because a guy farmed big, is not always an accurate assessment of how they are doing. And looking at a small guy without fancy stuff and no real drive or desire to farm half the country, does not mean he is not a wealthy fellow.

I have both kinds of neighbors. Truly wealthy small guys, and nearly broke bigger guys.

Size is not the be all.

[hobbyfrmr]

Go big, bigger cash flow to draw from. if it works out, you will be considerably wealthier than the average Canadian. If it doesn't work out, your men got to drive new stuff and work in comfort. If you enough product you will also get free trips in the winter, or enough air miles to fly around the world. They bank can't take air miles away from you!

[hobbyfrmr]

Go big, bigger cash flow to draw from. if it works out, you will be considerably wealthier than the average Canadian. If it doesn't work out, your men got to drive new stuff and work in comfort. If you buy enough product you can get free trips in the winter, or, earn enough air miles to fly around the world. The bank can't take air miles away from you!

[farmaholic]

Lol re air miles.... the bank may not take them but a divorce settlement might!