How BTO's operate

[SASKFARMER3]

You pay for it any thing is available

[sumdumguy]

I think LEP's explanation makes sense and likely is considering he said he formerly was a banker.

By the way Does anyone know if ISC allows the title to be pulled on city lots?

I think city lots are fair game with ISC, can't see why not.

[Richard5]

I personally know this particular BTO. It is a very impressive operation, approx 120,000 acres. The owners, in my opinion, are top notch respectable guys. This farm started from basically nothing Around 10years ago. It is still a bit of a mystery as to how they pulled this off but they show no signs of slowing down. I can't say I feel the same way about all BTOs but these guys have my respect.

Call me old fashioned but I cannot understand the "impressive" part, especially when I see the level of debt negotiated.

From the road it may look impressive but in reality, internally is it actually impressive? Sure, lots of nice equipment and professional made video's for you tube but at what cost? At the end of the day, my suspicion is now proved and this amazing farm is no longer amazing. Its all false money. Any one of us could do something similar to this if all we want is to look impressive

From a tax perspective, a farm like this, no matter what kind of joint venture corporate structure will have limited if any, small business tax rate. This to me makes it even tougher to compete with 26.5% tax rate on any earnings reported. Unlike a 2500-3000 acre farm that works really well for a business limit of 500k.

The day of reckoning is coming for operations like this, in my opinion

[SASKFARMER3]

I’m sitting in 28 above temps the last three weeks and this makes me think why the f&@k would any one in their right mind want to be this farm.

Is it a challenge to see how big you can get with borrowed money. Why life is to short and farming in canada is to risky.

The west did good because we flooded that’s all it boils down to and now with normal weather why put your self at risk.

Better taking the 100 mill and buy a bunch of Tim Hortons or Costco’s etc more money and less risk.

[farmaholic]

Re: pulling titles.... go ahead, pull some Ghetto titles, I'll tell you what you'll find if you pick the right ones....mortgages on some covering a "quick loan" which has NEVER been used and a "line of credit" I don't know the last time we used. Things don't always look as they appear. In fact the amount of appreciated land equity securing those unused loan instruments is stoopid. But they're left in place....just in case....some unsuspecting niave widow wants to sell her land! I hope you guys realize I'm joking with that last part....or am I? 🤡 what a clown!

[Misterjade9]

Perhaps I missed something in a previous thread, but why is this any of our business, and how does it affect the rest of us in any way?

You are absolutely right, it is none of our business until it becomes our business. If or when things go south on some of these operations and the banks and FCC are left holding the bag, as they were in the Broadacres
and now MCM farms fiasco, and they tighten up their lending criteria and won't lend you any money because they are now scared of agriculture even if your balance sheet is ok, then it becomes our business.