Canadian lenders get taken in large ND farm bankruptcy

[ajl]

Some of you may be aware of the large bankruptcy of McM farms in North Dakota as it has been mentioned on here before. Two of the top creditors are Canadian. BMO bank and Agrium. McM was not that big only 50000 acres but did have potatoes in the crop mix. He was able to borrow over $50M US, all operating money, while only owning 160 acres. That is an impressive feat right there. Well that at least partially explains why there is higher inputs prices for '18 in the face of lower output prices here in Canuckistan. Canola it taking a beating lately. Farmers in the south can now pray it stays dry so they can chemfallow instead of having to rotate all that pulse land to canola.

[hobbyfrmr]

Some of you may be aware of the large bankruptcy of McM farms in North Dakota as it has been mentioned on here before. Two of the top creditors are Canadian. BMO bank and Agrium. McM was not that big only 50000 acres but did have potatoes in the crop mix. He was able to borrow over $50M US, all operating money, while only owning 160 acres. That is an impressive feat right there. Well that at least partially explains why there is higher inputs prices for '18 in the face of lower output prices here in Canuckistan. Canola it taking a beating lately. Farmers in the south can now pray it stays dry so they can chemfallow instead of having to rotate all that pulse land to canola.

50 million US. Thats pretty good. If they squirreled away 5 million over the years they will be alright if they’re careful with spending.

[SASKFARMER3]

Like our BTO hopefully every trip he went to Mexico he took his 9999.00.

[farmaholic]

Like our BTO hopefully every trip he went to Mexico he took his 9999.00.

He's not feathering another nest in a foreign country is he?

[farmaholic]

There will be no foreclosures or bankruptcies in Utopian Canadian farming. Land prices can never be too high, inputs are never too expensive, and commodity prices are never low enough!

Everyone wants to farm in Canada, best place in the world to farm. Guaranteed success. Don't land prices and rent reflect that?

[farming101]

Continuing drought may get more attention as the days go by...Could put a crimp in things

[WiltonRanch]

For all the tests and regulations it baffles me how these things still happen. Lol. Makes it harder for us simpletons with equity and a conscience to borrow. Been times when a guys been broke as hell but you intend to cover it and do whatever to make good. The Pikes of the world make you lose hope in humanity. Worst is these snakes end up on a magazine cover and tell everyone how to do things. Some years ago I was in a magazine article about one thing or another and I’m no pro operator by any means but shared what worked for our farm. Back of my mind “now don’t go ****ing broke”

[farmaholic]

"Average" isn't worth acknowledging or celebrating. Where's the glory in being like everyone else...go big or go home, or just stay at home.

Bigger is better! Economies of scale! Die a Billionaire! Have the biggest headstone in the cemetery!

[sumdumguy]

How can the idiots lend money out of the country with no equity?

[hobbyfrmr]

How can the idiots lend money out of the country with no equity?

They are just diversifying their portfolio.