What will the Banks do if we don't finish harvest?

[SASKFARMER]

Like I said earlier if head office tightens rope your options are limited!

Yes tweety is correct they exited agriculture and we lost some real good nice farms! Banks don't care!
You will find out who your real friends are!

Good luck all!

[binthere]

that is so funny sk3. someone of your self proclaimed expertise should know or appreciate the banker is not your friend between 9 and 5. they have lives to. they can be your friend after 5 if you can accept that rational.

[4GFarms]

Just come off a couple leaner years and finally this year may get back on track. Going to be interesting as this year makes me think about upgrading some equipment but need to watch the spending as well. Poor year next year and back to square one! What is everyones thoughts on borrowing/debt to gross income per year. Trying to read up on some different takes on it but get mixed signals from everybody that has an opinion.

[binthere]

any amount of total debt higher than 65% to net equity ratio over a period of more than five years is a very strong signal to get out and move on. regardless of the enterprise.

[4GFarms]

So how does everyone value their land??? I understand according to the current market it is worth a fair bit but would never pay that much for it. Is that just an artificial valuation if there is never an intent to sell?

[SASKFARMER]

Yea that sounds more like it 9 to 5 but they have a job and if Calgary or Toronto says this is how we handle this crop out all winter their is nothing you can do about it!

[jake550]

No debt is best policy.

[fjlip]

If you owe the bank $100 that's your problem. If you owe the bank $100 million, that's the bank's problem. J. Paul Getty

Heard Buhler with similar comment....10,000 and 1 million.

[4GFarms]

Jake550, that is a great policy but as an expanding young guy way too hard to do. We are not in a good enough area to guarantee crops ro get ahead like that! Thank god for FCC!!!

[hobbyfrmr]

I have tried to keep debt in check by running old machinery. The advice I have been offered is to borrow/buy something on a regular basis. The alternative that I am facing is one day I will have to update everything at once and Inwill not be able to afford a large purchase.