Operating Lines

[malleefarmer]

ps going from 27 to 32 funding proposal with our banker at moment wish us luck and ps like klause im definitely not farmer off the year will a zillion % equity

[ado089]

I'm not going to say I did it all on my own but I didn't get to walk into a fully funded operation and start collecting a six figure "salary" either. I turned 26 with $1.5 million of my own debt used to purchase land and machinery,none of which has a co-sign. I have access to close to $300/ac of credit, almost half is from the bank on a revolving line of credit. Some Scotia line, some PHI, and the rest is cash advance. Some years I use none others I've tapped it out. My advice for what it's worth is to get credit while it's still easy to get because it will without a doubt tighten up.

[freewheat]

I guess I will ask again. Without paid for land, I have a heck of a time getting much of a loc. Banks seem to want that backing.

So how do you get a big ol loc without paid for land? I did notice one guy said someone just uses production numbers??

I always tried to get a real loc that would free me up for repayment terms etc. but without a single quarter of land paid for, I be screwed...

[freewheat]

hmmmm I inherited land hopefully that doesn't make me a arsehole

The fact of inheritance is not what makes you an arsehole. What makes an arse, is when you refuse to accept it, and deny it.

No, ye ain't one. Not even close.

[farmaholic]

Would FCC have anything to offer? Other than input credit?

Someone mentioned "advances". Borrowing from the future...

You might get credit extended against your land equal to a percentage of your equity in the land. Not saying it has to be paid for.

Use credit wisely

A banker once said to me, NO CREDIT IS BETTER THAN BAD CREDIT!!!

[Rareearth]

I like the like button idea.

It's bad business not to have as much available credit as possible. Set this up when times are good, as it's not so easy when things are tight. You don't necessarily have to use it, revolve it, buy from the competition once n a while. When the 1/4 next door comes up for sale every one or any one can play big shot pay cash / check same or next day. Loan and traditional financing take time.

Lots of winning how people operate, accumulate assets, etc. You can't pump the family one day then slam those with family farms. The statistics for 1st - 2nd, 2nd to 3rd, etc family transitions are not very good( but better than most other businesses). Good luck, insurance, timing, good business choices over the decades should not be diminished. Every one aspires for more and better, and some easier. Bigger isn't always better yet many choose to believe it is. Life is short, work smarter not harder.

[ado089]

Freewheat, my bank pretty much insisted I got a $100k line of credit when I bought my first 7 quarters, it is backed by the land. RBC

[hobbyfrmr]

I farmed my fist 15 years with unsecured credit and cash flow. Old, old equipment. I flogged all the line company credits and applied and succeeded with some LOC's. Identical to Black Powders description, disperse funds according to deadlines, take from here, pay there , use cash advances to try and minimize interest costs. Its weird and frustrating but I have a high equifax credit score. I never got into trouble but there were many times I would organize my payment schedules/strategies I could hear circus music playing in the back of my mind. Its not the best way to do things.
Some days I think I look back and laugh. I was mathematically eliminated from farming about 18 years ago but for some reason I really wanted to farm and thought I would figure it out. Ha ha . Some fools never learn.