How BTO's operate

[AlbertaFarmer5]

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?

[farming101]

In part it is about the continuing concentration of wealth and the impossibility of some areas having a next generation of land owners. Also has a bit to do with succession planning and how you will fund your retirement if you have a next generation you are concerned about. Yes, land is still changing hands but many locals are not in the running. They are totally shut out

[farmaholic]

We gave up a huge opportunity by not leveraging our equity(with in reason), while land prices were considered cheap in comparison to now and very low current interest rates.

Its hard to begrudge someone's success if they had the balls to take the risk!

Edit:

hindsight-- 20/20

foresight--blind as a bat

[AlbertaFarmer5]

In part it is about the continuing concentration of wealth and the impossibility of some areas having a next generation of land owners. Also has a bit to do with succession planning and how you will fund your retirement if you have a next generation you are concerned about. Yes, land is still changing hands but many locals are not in the running. They are totally shut out

Why are they shut out? Is it because the BTO can get levels of financing that the commoner can't? Or is the BTO somehow making more profit to justify paying higher land prices/rents? Or is it that the BTO is paying unprofitable levels due to all the financing and will soon be bankrupt?

[SASKFARMER3]

Or is it possible the banks bet on a flunky with good accountants etc and joe farmer with a great balance sheet is shit on and tossed out then when the shit hits th fan and Toronto realizes it can’t back a loan to one farmer for that amount the little guys pick it clean.

Ah farming

[SASKFARMER3]

Seen this rodeo before more than once not jealous of borrowed money at all but really are you a BTO or a slave to the Bank.

[AlbertaFarmer5]

Or is it possible the banks bet on a flunky with good accountants etc and joe farmer with a great balance sheet is shit on and tossed out then when the shit hits th fan and Toronto realizes it can’t back a loan to one farmer for that amount the little guys pick it clean.

Ah farming

So they are getting financing to pay unprofitable levels, and will not be around for long, so the commoners can pick up the pieces for pennies on the dollar when they inevitably fail, is that correct? Long term, I don't see the downside. Unless in the short term we all try to compete with them. Alternately, if their business model is so succesful that they can be profitable while paying higher prices, what are we doing wrong that we can't pencil that out?

[checking]

Actually, SF3, it appears to be the other way around.

[AlbertaFarmer5]

Seen this rodeo before more than once not jealous of borrowed money at all but really are you a BTO or a slave to the Bank.

If you owe the bank a 100,000 and can't pay, you have a problem, if you owe them 100,000,000 and can't pay, they have a problem. Checking might be right, it is the other way around.

I tried, I asked our banker if we were in the second category yet. She promptly responded that it will always be our problem, so much for that idea, guess we will keep making payments...

[farming101]

Bid on the total package, all or nothing is the biggest reason for being shut out

Over half of Canadian farmers are 55 or older. Long term is not an option. Competing against someone who is spreading their cost of living over 40,000 acres and mortgaged to the hilt is a non starter