HELP: Drawing equity out of land due to shitty year

[JDGreen]

I could not say it any better than LEP.. Do not give up land until you have completely analyzed the business. Listen to what LEP has said: my two cents.

[JDGreen]

Okay two cents more.. As someone else stated your looking to consolidate. Yes if you have been a straight shooter and maintained good credit ratings, paying out elsewhere and restructuring with FCC really should not be an issue if there is a history of past profitability and a good business plan presented to them.

[GDR]

I don't really have much help to offer other than wish you the best. It can be a stressful times when things are good but when they don't go like you planned it's pretty tough.

Depending on age of your existing land mortgage, pay attention to interest rates, may help the payments if it's lower now. Extending the amortization might help too.

My father had some tough times when I was a kid. He sold his cows on paper to a livestock dealer on paper then bought them back to look like a new transaction to finance. May need to do something like that other than there is way more records and paperwork on our operations today.

Good luck, chin up.

[bgmb]

Are there any private lenders etc that aren't loan sharks? Not something like input cap. Where do you find them
I m in same boat more or less.

I think any private guy you will find will be way worse than the banks and maybe even worse than input capital. Best bet might be to sell some overpriced land and rent it back.

[macdon02]

Turn iron back before you turn back rented land. Jd credit will loan to a meth head. Lose the land you lose the gross $ you need to dig out.

[MBgrower]

Selling land should be last choice. Id keep all rented land, maybe drop under performing land, if you have newer iron, try sell it on kijji for a decent return, buy back cheaper equipment. For next year, grow common seed, skip the seed treatment, buy the cheapest canola seed, and nitrogen fertilize to average yiled expectations. If it is a crappy year you will have had minimized your input costs. If the year is looking good, u can top dress more nitrogen post emergent. Also agree you should talk to your lenders, farm debt review board still around?? Perhaps seek independent financial counciling to weigh your options.

Many of us had some hard times growing our farms, but if managed right, u can pull through.

[foragefarmer]

I'm just wondering why a few of you are saying not to give up rented land. Not to disagree with your suggestions to keep it, but what if the rent was negotiated a high rate and why not concentrate on your own land and do a good job ensuring inputs and management are superior. Hard to make a suggestion as who knows if there is rented land or what percentage it makes up the overall farming operation. Just curious is all, and not trying to distract from all the great comments!

[furrowtickler]

Guys here have turned to private loan sharks - none kept their farm. Some good advice from others here . But I know more than a few that dropped rented land in situations like this and turned things around. Hard pill to swallow but do what's right for you, check out all options

[may-be]

I agree with MBgrower. If you have some underperforming land take a serious look at that. I have sold some a few years back because I thought it was only helping to drag me down. Best decision I made was to get rid of it. Swimming against the current just tired me out.

[bgmb]

I'm just wondering why a few of you are saying not to give up rented land. Not to disagree with your suggestions to keep it, but what if the rent was negotiated a high rate and why not concentrate on your own land and do a good job ensuring inputs and management are superior. Hard to make a suggestion as who knows if there is rented land or what percentage it makes up the overall farming operation. Just curious is all, and not trying to distract from all the great comments!

Cause its hard to trim overhead. Dropping rented land probably makes costs per ac go up and profitability go down. Unless rent is crazy crazy high or the rented land is very shitty. Basically of you are breaking even on your rented land with all cash costs in plus equipment depreciation you should keep it because it is helping to cover your fixed expenses. Like one guy said above look to cut costs by using common seed and if you have a good fertilization history maybe cut nitrogen back %30 and phos i would cut back to 20lb actual.

[westernvicki]

You are not the first in this position and you will not be the last: get good advise, from more than one source, including a banker, analyze debt ratios, be ruthless when you define and protect the base, and once you figure it out take the solution to the bank. Some of us did not get to be old farmers because it was easy.

[blackpowder]

We dont know his term pmts per acre. Nor any of his other fixed costs. It would also make a difference where he his.
We dont know his ratios. Or his personal situation. Strengths and weaknesses.

Having said that. My bank (not a national, not fcc), was just fine with me assigning more morgt to some land. (Just last week) Also a once per term principal holiday on term debt. Land values up every year. Everyone here (my bank and agriville) knows I'm up to my nostrils and the why.
Not advice. Just saying the most important thing you can do is talk to your bank! Know your own shit. They'll assign their own damn ratings based on their system and who they think you are. I only own 2 pairs of shoes and they damn well know it!
Without any more info it sounds like a cash priblem (for now). Theyll give you more operating than you can imagine based on land values here.
And forget about a legacy (or a lifestyle) if thats a hangup. Your self employed. You can live on the same pay workin summer road crew for the county but its a shit job. Any more money than that and your laughin.