Credit Sieze-up in Agriculture?

[vvalk]

Wilagro
Never heard of anything so, not sure of the word. It is impossible to buy land and equipment of any size by saving up from an outside job. How do you save up money to buy land thats costs $100000 to $200000 a quarter or a combine that even used sells for $200000? You are not running your business properly if you are not borrowing. Why not borrow at 5% to make a return of 10% to 50%. Its called leverage. What a simplistic comment you have made and shows to me the size and scope of your farm. Does not surprise me in the least that your a devout CWB supporter.

[bluefargo]

I've always borrowed lots of money ...Operating, machinery , land. You name it.
I never could have gotten into farming without credit and lots of it. Now why anyone would want to get into farming is the topic for another thread. All I know is that , for me at least, with a wife and family, saving up enough to get started would have been futile.
Currently I owe way more than a guy my age should ever owe. But I love farming and I have no regrets.

[parsley]

vvalk,
wilagro had a job apart from farming. Maybe he couldn't initially get credit. maybe he has one leg. Maybe he had other responsibilities. Maybe his wife refused to live on a farm. I know lots of people who work off-farm and buy land and farm what they think they can handle IN THEIR SITUATION.

People farm for different reasons. Not everyone copies as you design, nor should they feel they should. It's called choice.

Parsley

[furrowtickler]

That was 30 yeasr ago or longer willie. I admire youself, the granparrents and forefathers who did so, but today's world is light years from that time in history. Today you would need 10 - 20 times the money you saved to buy the same size farm bought back then. And that is just the dirt.
Do not get me wrong, I think we all would like do the same thing today, but that would be virtually imposible.
Do you have any siblings lined up to take over?

[TOM4CWB]

Wilagro,

ARE YOU AND YOUR FAMILY PROSPEROUS AND HAPPY?

ARE YOUR NIEGHBOURS glad to have you around?

ARE THE BUSINESSES you choose to partner with... glad to have you as a customer?

If you can honestly say 'YES' to these questions... then I am happy for you... and wonder why you don't share your good side with us too?

[freewheat]

Some of you guys are kinda smug. Not all of us choose to have a 200 000 combine, mine for example is worth around 5 000, my tractors maybe 45 000, Seeder, well no one would buy it anymore... I have no machinery payments because I choose not to. I farm enough land to make a living on, yet without "needing" flashy equipment. Farmers are our own worst enemies sometimes.

As in: Oh I picked up 800 acres this spring, guess i need another combine, or a grain cart, or ????, etc...Farming doesn't have to be about being the big shot, and I am living proof of that. I pay income tax on my farm income every year, yes even the years when I seeded 20% of my crop. I suppose i am therefore managing wrong. I am a smaller farmer, so shoot me guys. Labour is the issue for me, and I have no desire to have a bunch of iron debt, to "save" taxes, to be the big shot, or to stroke my ego.
Before you go and say someone is running things wrong because they don't borrow enough money, have a look at the auction sales flyers would you? A lot of these guys went too far, and shot themselves.

Don't get me wrong, I borrow money, I have to, but I minimize debt on iron. I'd love some bells and whistles, but it don't pencil for me at this time to buy a highly depreciable item, and have to pay 1.5 times what it is worth in the long term, only to have it worth maybe 25% of its original value in 10 years.

Also, I detest the CWB!!! Not all of us small farmers like them, you know. Don't paint me because i farm smaller, with the brush of cWB lover. Don't you DARE!!!

[mcfarms]

Tom

You know at least 1

[vvalk]

Freewheat. You are very defensive about your farming operation for someone who is happy about it. Did you not read wilagro's comments? He was on the attack saying you should not be a farmer if you need to use an operating loan and that all your doing is working for the big bad corporations. That is why I made the CWB comment. Its OK for the poor small farmer to make comments but if a large successful farmer defends himself lookout!!!

[parsley]

The man has worked at another job for 20 years. He could have bought only stocks with his extra money. But he chose agriculture and bought a farm. And cattle. He doesn't owe anything. He has no operating loan. When did those goals become outdated? They have appreciated in value. HE is pleased with them.

Nobody else is asked if they are a good neighbor, or if they bonded with their mother-inlaw.

Tom asked the man how he got started and he was decent enough to answer but you want to judge him on sociability, now?

If choice is what you claim you seek and respect, then be consistent and include it in all of your arguments and considerations of others.

And wilagro, the beer is on me, sometimes plain godamn arrogance calls for one.

Parsley

[parsley]

I love it, that if you farm more than a section your a big shot!!

Every farmer out there who's neighbor farms more than themself is a "Big shot".

I love the mentality of some of you people.