Shit is getting real !

[Klause]

Don't you have to do one every year ?

We do every January....

[iceman]

Spot on SF3

The banker got told to de risk his portfolio and your number came up. This has happened time and time again in the industry. Very common in the 30s and even the 80s for bankers to call in loans that have never been defaulted on.

Get your numbers together including that business plan and go shopping for a new bank. Good luck and remember these experiences will only make you stronger

Iceman out

[RTK]

This is an area that I have some experience as a banker. Sorry to hear that a consultant charged 10k for a business plan - not all is lost here - that is a perhaps a good supporting document. SF3 made some great points. Here is my approach - get this crop harvested so you know where you are at... Take a serious look at your situation and decide is continuing the right way or is it because that's all you know? This maybe a case of a bad lender and improperly structured debt without numbers I no idea. Now build your own plan this includes - detailed balance sheet (include loans, payments, security); list total acres farmed rented vs owned. You can do a simple income statement and make copies of 3 years of tax returns. From this information a lender get a nice easy to handle package; you can attach the booklet the consultant gave you as well. Then book some appointments. Did the bank tell you to see a consultant that charged $10k?

[Guest]

Yea RTK, the bank told us to see this consultant, it's part of the "growing forward" program so we will receive a percentage back.
It seems like an outrageous fee for these results, Resembles an insurance claim to me, the cost of things quadruple as soon as there is insurance money connected.

[RTK]

My auditors really liked those fancy plans - not one of them understood them. I alway found the more elaborate the plan the more risky the loan. Is waiting til after harvest an option - I think if they waited til May to tell you to move on they have no clue about farming. Make sure you shop around to a credit union as well - land debt and machinery is simple for them; operating is where CU will struggle compared to banks.

[samhill]

My experience may not apply, here's what I think.If large well heeled operations are drooling over your ground, be very careful. Trust no lending institution, if they seem will work with you, may just be a set up. The contracts give them ability to stop you at any time. FCC loans officers receive bonuses for signing new accounts, and large ones are the best for them.
Others maybe also. A credit union was the worst for me but others also. BOM was best, but maybe just person I dealt with. Get agreements early, read all conditions closely.
Don't trust them. Rent out and work off farm is safest.

[fjlip]

Been farming long eeyore? Expanding quickly?
Not easy if either apply, high risk occupation, lots of young casualties.

[grassfarmer]

Banks chase me for my deposits ! Yous all backwards begging the banks for loans and using financial advisors !

Starting to sound awfully like BTOFarmall.

[Guest]

I've been farming my whole life fjlip, I was to young to drive when I got my first permit book.
I still have 3 kids in school and the oldest is in the city now. Nothing ever came easy. Had built a pretty good cow herd and needed a bigger house before BSE crippled us, managed to keep going and found out in 04 that crop insurance coverage was all about when I froze out, was badly bent after that but never went broke.
No big rent paid here, never bought any land recently so not caught up in that.
Didn't get all the crop off last year and went into default because I didn't have enough stored grain to cover the spring advance so no new advance this spring.
I'm in the wet area , with the poorest rail service which don't seem to help.

[farmaholic]

I am counting my blessings