Sharks circling the boats

[bucket]

Who are they collecting the land for?

Last time they had the CPP ready to hand them a nice profit?

[4GFarms]

Quickly looked into it when they started. Did not like the fact you had to put land up as collatoral. Which really only makes sense from a lenders protection side but we were nit ready to put land up that is free and clear. So they continue explaining and it sounds great as you get $12/bu for your canola when it was only $10/bu but then they say you owe them grain in years 5-6 with no value to you. So wait a minute the value of the canola you hauled in over the last 6 years to me was around $8.50/bu. that ended the conversation right away. It seems good but sketchy and it is a last resort financing option.

[bgmb]

I suppose most of these guys were on the rocks before they even spoke to input capital. Bank probably wouldn't give an operating loan so hello Input Capital.

Recipe for success in farming;

1) Listen to the grain companies, they know the markets better than you dumb farmer the markets are only going lower sell sell sell.

2) Make sure you know the chemical rebate programs so you can get the best deal these programs are great for the farmer, BIG SAVINGS!!!

3) Lease everything you can, don't even look at the interest rate, think of the tax savings! your payments will be lower and your iron will be shinier.

4) Go for yield, forget your costs! more grain = more money and more money is always better. Micros, foliars, VR, Precision everything and Primers!!! #Lookatthepictures

[farming101]

Interesting your reference to sharks. Does smell fishy.

Thanks for the math 4G. It would look like the more canola you sign up the greater your chances of being foreclosed on.

[farmaholic]

Compare it to hunting..... the "patient" predator will get it's prey.

[4GFarms]

Yeah it doesnt sound like a good fit unless you need the money and they are the only ones that will give it to you. It seems wierd because if you have land to put up through them then you should of had land that your local banking institute would give you a loan with. They might even be easier to deal with. Funny story about that is after I had talked to the guy and told him we were not interested, we were hauling to the local elevator and one guy we talked to was telling us all about how he signed this awesome contract and got all this money upfront from these guys. I think he is still going but maybe has not got to years 5 or 6 where he is giving away canola. Hope he spent his money properly haha!!

[farmaholic]

4G, the same thing entered my mind regarding the free and clear land. Why not borrow from a "REPUTABLE" source. As with all stories... there may be more to it than we think.

[4GFarms]

Yeah maybe dealing with a local lender "MIGHT" understand a bad year??? Anyways, there seems to be more people needing money (and big farmers) so we will just stay with what we have and slug away.

[hobbyfrmr]

Interesting your reference to sharks. Does smell fishy.

Thanks for the math 4G. It would look like the more canola you sign up the greater your chances of being foreclosed on.

And there is the hook.

It is fascinating how farmers are addicted to canola. I can count 1500 acres of canola on canola stubble within a 5 mile radius of my farm. The crops look great. So it works. Its difficult to criticize such nice crops and proper line of equipment to do the work.
If the "northern" lentil crop comes off with reasonable quality, they will be included in rotation. I have seen some decent ones so far. Some have Hawaiian pods on them.

[farmaholic]

Ok...I'll bite....what are Hawaiian pods?

[hobbyfrmr]

Thank you for biting Farma.....

Inside the pod, the first lentil pays the bills, the second lentil takes the farmer to Hawaii.

Yes, its a groaner.

[blackpowder]

Friend of mine is an ag lender.
Some of his stories suggest that yes some people are that dumb. Nothing new really. Its a shell game if u let it happen.

Anybody figure out how much the scheisters made on canola futures?
Positive they would have hedged.

[hobbyfrmr]

Friend of mine is an ag lender.
Some of his stories suggest that yes some people are that dumb. Nothing new really. Its a shell game if u let it happen.

Anybody figure out how much the scheisters made on canola futures?
Positive they would have hedged.

Nothing ventured, nothing gained.