Why Farm in Canada

[Klause]

Klause, If you actually look at realized net income which is what the graph shows, it is correct.

My bad. You're right. I couldn't count zeroes!


Gonna bring that up with the NFU.

[AlbertaFarmer5]

I've spent quite a bit of time in Russia, and the idea of moving there to farm has come up. The trouble with doing business there is you have to be careful whose toes you step on, or you may just disappear, it happens regularly. Corruption at every level, adds huge costs to any endeavor. They call the government legalized mafia. Most farms have an armed guard at the gate, same thing if they leave equipment in the field overnight, those are costs we don't have. No government subsidized crop insurance, and not much for other government programs. They have the same complaints as you hear here, about markets and weather, and BTO's and equipment costs( Ruble lost half of it's value again a couple of years back, that makes imported equipment awfully expensive). If someone wants your property for development(including government) they will find a way to steal it from you. Rural roads are disgraceful to non existent, neighbors will drive across your crop to get to theirs, it is the only way. But the soil is incredible(Black sea region), labor is cheap, Rostelmach combines and Kirovets tractors will get the job done.

As for land costs around the world, all the factors and risks already discussed are already baked into the price. There are no bargains,unless you have inside information on the next government coup.

[sumdumguy]

I showed this thread with the depressing graphs to a non-framer. He said this topic should actual be "why farm at all?"

[grassfarmer]

Klause, If you actually look at realized net income which is what the graph shows, it is correct.

Very funny, now you just need to superimpose the debt for the same period which would require the graph being 10 times taller to accommodate that line. You can manipulate the graphs but it doesn't change the fact that debt to net farm income ratios are horrible.

[farming101]

I'm not debating that debt is many times higher than years ago.
The scale used in the chart gives the impression that income has flatlined that's all

[grassfarmer]

I'm not debating that debt is many times higher than years ago.
The scale used in the chart gives the impression that income has flatlined that's all

Which it has relative to the debt/gross farm revenue/value of exports/retail price lines.

[fjlip]

A world commodity in "adequate" supply has no price relationship to consumer good it ends up in.
Primary producer gets as little as possible, only enough to keep enough producers chasing the carrot to ensure a little too much supply. That way every one happy other than primary producers, who are not valued?

[farming101]

I found this of interest:

[pourfarmer]

I found this of interest:
[ATTACH]2167[/ATTACH]
[ATTACH]2168[/ATTACH]

That paints the picture very well. Can you show debt also?

[farming101]

Total debt for all types of farms across Canada is in the first chart

[pourfarmer]

Total debt for all types of farms across Canada is in the first chart

I obviously need another coffee. I missed that first one.

[grassfarmer]

A world commodity in "adequate" supply has no price relationship to consumer good it ends up in.
Primary producer gets as little as possible, only enough to keep enough producers chasing the carrot to ensure a little too much supply. That way every one happy other than primary producers, who are not valued?

While that is true in general terms it is by no means a static scenario. Look at this graph showing the increase in spread between farm-gate and retail beef price over a relatively short period. It will be repeated pretty much across every commodity. That is a bigger issue than a small % of farmers having to pay some more tax because they chose to incorporate yet nobody is talking about it.

[Grahamp]

I think Krause makes a good point. We have farmed forever in Canada, but when I think of these changes I don't know if it is worth the aggravation. One of the things that keeps me going/motivated during the hard times has been the knowledge that I can pass down something to my kids, or if they don't want to farm we could rent out the land when we get older and spend time travelling etc. Take both of those away and I honestly would consider doing something else. I don't think I am courageous enough to go farm in another country but I would consider changing careers. Stop greasing everybody else's wheels.

[grassfarmer]

Nothing to stop you passing your farm onto the kids or renting it out.

[sumdumguy]

The queen of England owns every acre of land anyway so quit fighting over it.