Area One Farms

[Crestliner]

No... I resurrected this thread I started last year for context. One of their progressive farmers that they "partner with", is liquidating WELL AHEAD of their intended 10 year horizon.

Couple of average year crops, max inputs, and gargantuan capital outlays are sinking a splashy operation.

What auction sale is that?

I personally don’t think there is enough net income in grain farming to grow the farm with earnings and take care of investor returns as well.

Why are farms so chronically undercapitalized?

Because the farm doesn’t make enough to carry the demands of capital required.

Yes we have a few good years, high prices or high yields....but when it happens, the cost side is quick to respond...higher rents, higher inputs and don’t mention the Royal screwing equipment is giving us....but most of the time farming is SLOOOOOOWWWWW MONEY!

We have had a big bump in asset land values in the last 10 years...some guys have turned that equity into borrowed money and I think I sometimes people think that’s their money....big surprise coming for those.

The best capitalized farms are inter generational farms that have been well managed, grown from retained earnings and the families have gotten along and no big divorces or sibling blow ups...like I said SLOOOOOOOOWWWWW MONEY!

The Broad, Input, schemes and Private investor farms will come, occupy some space in the industry, but the family farm will endure, it’s the best structure and my gawd needs some support and programs from all levels of governments that encourage its survival and thrive.

[rumrocks]

The tortoise and the hare come to mind.

[15444]

What auction sale is that?

I personally don’t think there is enough net income in grain farming to grow the farm with earnings and take care of investor returns as well.

Why are farms so chronically undercapitalized?

Because the farm doesn’t make enough to carry the demands of capital required.

Yes we have a few good years, high prices or high yields....but when it happens, the cost side is quick to respond...higher rents, higher inputs and don’t mention the Royal screwing equipment is giving us....but most of the time farming is SLOOOOOOWWWWW MONEY!

We have had a big bump in asset land values in the last 10 years...some guys have turned that equity into borrowed money and I think I sometimes people think that’s their money....big surprise coming for those.

The best capitalized farms are inter generational farms that have been well managed, grown from retained earnings and the families have gotten along and no big divorces or sibling blow ups...like I said SLOOOOOOOOWWWWW MONEY!

The Broad, Input, schemes and Private investor farms will come, occupy some space in the industry, but the family farm will endure, it’s the best structure and my gawd needs some support and programs from all levels of governments that encourage its survival and thrive.

Need to print that and send to every MP, MPP and scum-sucking checkoff group. But the hot air will blow it right through their heads.

[poorboy]

Helmsdale,

Is that the operation on Highway 570 just south of Blood Indian? Sure looks out of place there.

[blackpowder]

So, I watched their video.
Ya, it hinges on two things.
Buying undervalued land. And leveraging your own under secured land.
Never see these guys in this area at $5000/ac. Although I know of one accountant pushing over leveraged guys to sell some dirt to an investor group and lease it back.
Whatever the model in the future, there's only so many dollars left at the end of the year. And there will always be years everyone is staring at a negative.
Any model might work. But the players will have to accept the negative years.

[iceman]

A link or it didn’t really happen!

Iceman

[malleefarmer]

Remember on here a couple years back “one earth farms” what became of them or still going strong

[the big wheel]

Remember on here a couple years back “one earth farms” what became of them or still going strong

They re now in a different location
I think they renamed to Another Bankrupt Farm?

[blackpowder]

Didn't Gary Pike and Larry Ruud (one earth) go to university together?
I remember when they all started with Alberta Ag. Giving talks on how to survive in Ag. There was a third man but he was killed in an accident.
Then AB govt downsized, they went on their own with the same message. They all told me my days were numbered 25 years ago.

[SASKFARMER]

One earth is toast.

Plus Pike and crew Are gone.

Big splash and fizzled out to nothing.