FCC changing their tune.

[farming101]

Would anyone like to know my idea of being efficient....

Hauling grain off the combine to the elevator with as few bins as necessary .....that way the grain is in position to move to export....

That's been taken away....so how does a farmer gain back that efficiency?

Buy bins and augers?

What are your thoughts on the economics of that setup?
When would you actually sell the grain? How much would you be willing to pay for storage if you wanted to keep ownership?

[Oliver88]

What a dumb article. Get more efficent make more money wow what a revelation. Dont need a defree in exonomics or an mba to figure out that concept. There are lots of producers who can easily make money with todays prices and average yields. Yes 14 dollar canola and 8 dollar wheat is nice but that is why we now have these huge lamd prices which everyone likes to bitch about

Solid points.

[hobbyfrmr]

....more subliminal sarcasm?

Well, kind of I guess. I have always thought that farming is always cash poor. There is never quite enough money to do things “right”. Thats why, as furrow acurately describes we become the welder, gas mechanic, heavy equipment mechanic, accountant, machine operator of every single machine on the yard, so on and so forth. Those farming ventures were well capitalized, they should have, kicked the hell out of any competing grain farm for miles. Especially in the time of high prices.
Instead the smartest guy in the room (Pike) shorted FCC tens of millions, and shareholders. It is incredible that they continued to pay the guy a salary to wind down the project.
Not so much sarcasm, more like the wonder in the irony of it all.

[ajl]

A simplified system with fewer segregation would be one way to increase efficiency but the seed industry doesn't want that. Perfectly fine older varieties get moved into some new class as a result. There is a farm for sale near Grand Prairie with 5500 cultivated acres and 800000 bu of grain storage right now. (figure that one out) Look on farmrealestate.com This way a guy can segregate into 40 different classes of wheat and store 3 years worth of production. Highly efficient that.

[bucket]

What are your thoughts on the economics of that setup?
When would you actually sell the grain? How much would you be willing to pay for storage if you wanted to keep ownership?

No one let's you store grain...besides three years running so called dumping grain at harvest has been a fairly effective strategy when you figure out those on farm bins and 2 on farm elevations with the auger.....

[hobbyfrmr]

Solid points.

Agreed . US farming website farmland buy/rent prices conversations turn to the fact that too ultimately over pay for the priveledge to farm. Its a farmer thing. If they make profits they immediately put it into farmland purchase or rent prices. This makes me think think of the Buffet thread where he knows when a stock is undervalued and time to buy. It looks like farmers work the opposite way. Not laying blame, furrow noted an observation which I strongly agree that the “rules of business” are backwards in ag.

[Crestliner]

Well, kind of I guess. I have always thought that farming is always cash poor. There is never quite enough money to do things “right”. Thats why, as furrow acurately describes we become the welder, gas mechanic, heavy equipment mechanic, accountant, machine operator of every single machine on the yard, so on and so forth. Those farming ventures were well capitalized, they should have, kicked the hell out of any competing grain farm for miles. Especially in the time of high prices.
Instead the smartest guy in the room (Pike) shorted FCC tens of millions, and shareholders. It is incredible that they continued to pay the guy a salary to wind down the project.
Not so much sarcasm, more like the wonder in the irony of it all.

FCC never lost a dollar on Pike...they were the secured creditors. Different story with the unsecured....which is the case all the time. FCC knows how to cover themselves very well and rarely lose.

That’s why they lend max 65% on their land value appraisal....which really is 50% of actual land value....so boys better have half the cash on the dash or lots of equity to play the game at the big land prices today.

Go ahead take that hard earned cash sitting in the Bank, make the deposit into the neighbors land you always wanted and your kids or grandkids will be the lucky ones to make the withdrawal....lol (if they don’t screw it up!)

[Klause]

FCC never lost a dollar on Pike...they were the secured creditors. Different story with the unsecured....which is the case all the time. FCC knows how to cover themselves very well and rarely lose.

That’s why they lend max 65% on their land value appraisal....which really is 50% of actual land value....so boys better have half the cash on the dash or lots of equity to play the game at the big land prices today.

Go ahead take that hard earned cash sitting in the Bank, make the deposit into the neighbors land you always wanted and your kids or grandkids will be the lucky ones to make the withdrawal....lol (if they don’t screw it up!)

Huh?


That's what a credit union does
FCC will lend 85% of the average area value.

[Crestliner]

Huh?


That's what a credit union does
FCC will lend 85% of the average area value.

You have a nice FCC guy or you are Gold Plated client or both. Last time I checked FCC land values used for financing in my area was 18 months behind current value. But hey whatever works.

A Lawyer friend of mine whose firm does work for FCC told me they were happy and well covered. I don’t think Broadacres bought land just rented...so maybe it was just inputs....it’s all history now.

[parsley]

Does FCC finance Poplar Trees 🌳? Lol

I heard that 😄