End of the Week Thursday Report.

[Crestliner]

SF3 I concur with a lot of the comments you made when I asked you what kind of a year we will have. In the last two days very little snow has left and now we are April 15. Last half May planting is a good thing now.

The soil moisture maps came out last night and I see south and east of Regina is moderate to severe drought. Given your photo snowmobiling today, the snow must run out pretty quick to your south. How dry is it in the south east...I can’t believe it give central sask where we are sitting pretty good.

Also, question....which Bank is hinting that farmers should get bigger? Every time I go into mine with a few acre bump...they sigh and one guy asked me when I thought I would have enough...I think like “really you are asking me that”. Just curious who that is that’s promoting that.

There are some serious financial issues out there that nobody is talking much about. My accountant tells me that the guys with new equipment or guys with 2-3 year company leases that have come due and have to roll into the new are having serious issues. In addition, principle and interest payments on the “new world” price of land is draining the cash flow.

Non farming Land Investors are having to renew loans and now at the higher interest payments won’t be paid by the land rental fee and farmers don’t want to pay anymore rent. So some of the investors that have had a 50-100% gain in last 5 years are looking to sell. Maybe there are opportunities coming for those who saved their money, paid down debt and built equity while sitting on the sidelines watching the show.

[sawfly1]

crestliner yes all that shiny paint , comes with a price.
the land on the other hand , at least until now has been nothing but smart.

but you have to think that at 500-600 a qtr. what they are paying now ,
that the payment would be 220 an acre .
over 20-25 years, you begin to wonder.
I guess I did the same thing in the 80s with land at 90-100 qtr.
and 12-18 % interest rates .
too late for me to play that game now.
do not have 35 years to get a return

[SASKFARMER3]

Land purchase is better than renting any day no one looks over your nice clean field and thinks I can take that away and farm it better, but.

How is 300 or 400 or 500 thousand a quarter smart? Yes, buying that half that connects to yours won't kill the operation but when you're buying 10 to 15 or more just to keep moving up to the east side of Chicago not quite sure.

This is Canada with a 90 to a 100-day window to grow a crop explain that.

Also, every single guy who purchased expensive land the last big run-up is gone. DOne left the building. except one in our area. The 80s were bad.

Now the land is back up and its a smart investment. HA, we were told that in the 80s.

Most are carrying so much debt that a spike in interest rates or a drop in grain prices and their done.

You can keep renting and renting and renting till your blue in the face but eventually, most say this is insane and quit.

Look at most sales this year lots are hanging up the shovel and moving on. Some have great renters who will promise the world but eventually how long can this Ponzi scheme keep going.

Banks aren't forcing the farmers to keep growing. It's a combination if you have the whole farm mortgaged to the hilt in cross cross loans that has everything you own tied up with personal guarantees even on your corp. They have you by the Nuts so most don't want to show weakness in public or fail so you rent more and more and keep the game going.

Sometimes the cards fall your way sometimes mother nature throws a wrench and your done.

Its Canada with a 100-day window to do it right or fail.

Yea Lands worth 500 to mill per quarter up here.

Here is a thought how come most Hutt colonies now have business on side not farm related? Ask your self that or like Klause said better to have a section and 20 cows and work in Patch than chasing the never-ending farming dream.


People get mad at me for calling out the ridiculous costs farmers in Canada face with Seed and Equipment and fert. and Chemicals. All take their cut and yes they provide us with the product but sadly we give more and more till we have nothing left for us. Keep getting bigger another section or two that way you can pay for the extra costs they give us.

Funny like I said before once you realize the game is a game and the companies that supply and need us don't give a rats ass if you sink or swim just that you make your payments and keep them going. Life on the farm gets better.

Others may disagree all the power to you keep going get bigger work harder, in the end, we all get a plot in a cemetery or get placed in a jar or spread in field and another one picks up your spot.

Farming goes on!

[Crestliner]

Yes I agree...two people in our area that paid $1000/acre in the early 80’s and didn’t loose it.Took 25 years to pay it off and several refinances, lots of hardship. One guy had off farm income the other farmer operated with grandpa grandpas money so he was good.

Dozens of guys put the titles on the lenders desk and rented back...they had a chance 10 years later to buy back and some did for 50% off. They still have the land today. Others had like you say “left the building”.

Lots of farmers in the community who sat on their hands through that run up and didn’t buy high were ticked off about the deals these people got. But ambition has its costs and those who risked it all went through a lot of pain that the coffee row expert complainers wouldn’t chance to take the risk themselves.

Personally I think everyone makes a mistake once or twice. Farming is a business but it is not like other business as there are several things beyond your control. You have to love the land and love growing things and seeing them grow. It’s way more involved than just the money, and not everyone has the feel for it.

These farmers in the 80’s got another chance and some of those operators learned a valuable lessons and are good farmers today. Whatever you think, at least we had a Premier that understood the hardship and did everything to keep farmers on the land.

I feel that we may be headed there again, interest rate could go nuts, crop prices collapse....But then again there are a lot more mouths to feed in the world today, the credit markets have way more diverse options, insurance programs are way better than 30 years ago, and plant genetics have made some big gains, I think the equipment is better made now and really we don’t need to get caught in the trading trap like we used to.

So I’m keeping optimistic and looking forward to the snow leaving so we can do it again.

SF3 you are very right though...better like doing it because we only go through one and it’s funny we all will end with the same amount of land....6 feet of dirt. Lol...

[SASKFARMER3]

I also can’t wait for the snow to leave and we do it all again.

I guess as you get older you start seeing the game for what it is a big game.

I love growing a crop from spring till fall I love the smell of fresh pushed trees or the settled dirt after a rain.

I should right that book I joke about “ How to be a BTO in 10 easy steps till it’s all gone”

The problem today vs the 1980s is the way farms are set up “ banks won’t make the same mistake they did In the last turn down” and the horrendous amount of debt farms carry.

Very few have no opp debt and no machinery or very little machinery debt and same for land.

But it’s sunday I’m having fun with my Boys Cleaning and F$&king around at the farm and that’s priceless.

Only god knows how the year will go we just ride the wave.

[Hopalong]

Looking back on farming career, was over cautious more of the time than over optimistic.
Not sorry but would take more chances if I was doing it over.
Had a few times like early eighties when caution paid but think it is similar to most other business in dependence on luck and management ability rather than other parts of the value chain working against us.
Agree that if you do not love doing it, do something else.

[farmaholic]

Like any job, there will be good days and bad days. But to expect someone to farm for only the love of it and not the ability of it to provide a good standard of living for the amount of risk taken....I don't buy it.

It's not for the faint of heart or anyone who knows better;-)

[iceman]

I should right that book I joke about “ How to be a BTO in 10 easy steps till it’s all gone.

Lol you just made my day

Can I please have a signed copy?

Iceman Out laughing

[SASKFARMER3]

The University of Calgary gives an honorary degree to David Suzuki and Calgary is in line for biggest snow dump in winter.

Well if he actually believed his bullshit a dog sled might have trouble getting him there.

USeless fools telling the population whats happening.

[Oliver88]

The University of Calgary gives an honorary degree to David Suzuki and Calgary is in line for biggest snow dump in winter.

Well if he actually believed his bullshit a dog sled might have trouble getting him there.

USeless fools telling the population whats happening.

Suzuki hates Alberta but somehow the socialists who run the University of Alberta decided to honour the hypocrite.

[SASKFARMER3]

It shows how sick some people running our institutions really are

[SASKFARMER3]

So today is theRegina blocking pattern in place or will it break down and let moisture move east north east