Farm Bankruptcies Soar In The Midwest

[fjlip]

https://www.zerohedge.com/news/2018-11-26/fed-warns-farm-bust-about-get-worse https://www.zerohedge.com/news/2018-11-26/fed-warns-farm-bust-about-get-worse

"The underlying problem, which existed before the trade war, was overproduction. Farmers are almost too efficient for their own financial good," DUH...

[SASKFARMER3]

And what happens in the USA happens in Canada in Two years or less.

Welcome to the 80s all over again.

Except for this time, Russia and Ukraine and China and South America will replace us and we will become them.

Useless leadership with no vision.

[grassfarmer]

Useless leadership with no vision.

I thought you were a Trump supporter?

[ajl]

Most of these will be planned bankruptcies like Broadacre was. Farmers always talk about quitting but seldom do because of one reason: NOTHING else to do. You are more likely to encounter a tyrannosaurus rex than a decent job nowadays which is why EVERY millennial is coming home to farm. When I was at the new Vegreville Viterra, they even helped dump my truck there was so much staff there. Haven't had that happen in more than a decade. That said, without inflation to bailout mal investment, I do expect foreclosures to start happening soon locally. There is one judicial sale in the area that I know about.

[Horse]

So sack 3 are you the problem, or the solution ??

[SASKFARMER3]

Grass I meant Canadian Farm groups have no idea what is happening. Paying overpriced dollars for land in areas that should be seeded back to grass. Yet high producing areas are still way cheaper to buy land. But that's farming go big or go home attitude.

South America and Russia and China are leading the way and Canada and USA and Europe are falling. Why because we believe in all the bullshit with seed costs and chem and fert these other places realize its farmers then the rest can take money. Here farmers are dead last. If you don't believe that your smoking way too much like Trudeau.

[hobbyfrmr]

Grass I meant Canadian Farm groups have no idea what is happening. Paying overpriced dollars for land in areas that should be seeded back to grass. Yet high producing areas are still way cheaper to buy land. But that's farming go big or go home attitude.

South America and Russia and China are leading the way and Canada and USA and Europe are falling. Why because we believe in all the bullshit with seed costs and chem and fert these other places realize its farmers then the rest can take money. Here farmers are dead last. If you don't believe that your smoking way too much like Trudeau.

Most western Canadian farmers have embraced the work of clinical psychologist Ricky Bobby, in whose recent research summary was “If you ain’t first, you’re last”.

[grassfarmer]

Grass I meant Canadian Farm groups have no idea what is happening. Paying overpriced dollars for land in areas that should be seeded back to grass. Yet high producing areas are still way cheaper to buy land. But that's farming go big or go home attitude.

I don't know of any Canadian Farm groups buying land if you're talking about producer representative groups. It's the "big, progressive farmers" around here that are paying high prices for land - not even stuff that should be seeded back to grass - but stuff that they first have to clear from oak trees and sloughs before growing grain on it when it's potential would be grass at best.

[Hopalong]

Recall cutting back or limiting production in order to take advantage of our own farm programs.
Usually ended up regretting it.
Direct payments like agri invest encourage production but are popular with many farmers.
A concern if US goes back to them.
Agree Trump trade policy is a recipe for disaster.

[jamesb]

I would agree that we will see many western Canadian farms wind up operations within a couple years. Lower prices combined with weather issues can cause cash flow issues real fast. The ability to service debt is paramount. Funny thing is that we have seen this all before. History does repeat itself. I am just old enough to experience it the last time. I do think most farmers management prowess is far better than the 80's but many that grew their farm, more land, machinery costs out of wack, are going to have to do major restructuring if they want to survive.

[bucket]

What is also different is the cost if machinery....it doesn't matter if you are buying new or fixing old ....the costs either way can ****ing near break a farm....either the new cost or the lost time in field....

With manufacturers that refuse to accept responsibility for their poor design and manufacturing...

When I hear deere has an issue on nearly every combine's sieve frames and expects farmers to pay the cost....

Or a rear rotor update...r and r a rotor is 5000


Or a poorly designed rear beater bearing that burns combines up....


It doesn't matter how well managed the farm is.....shit happens....


And it's costly. ...

[farmaholic]

It can't happen in Canada. Because they're not making anymore land and it doesn't fall in PRICE...ever.

The only ones in the Ag Industry who needs to restructure are Primary Producers, bigger is better, and leasing equipment until you have no equity left in the one you traded on the lease is an ok way of using/acquiring equipment. Rent as much high priced land as possible...even if you have to out bid your neighbor by a dollar to get your hooks into it....you might be able to exercise your first right of refusal if the landlord wants to sell at top dollar plus 5%...its worth it. And don't cut back on inputs, put as much fert on as you can afford...more is always better, spray for disease even if it isn't necessary....pour the coal to it because every thing you can do to it pays back according to Company field trials...YOU CAN'T LOSE!
Then "CASH"(flow) is King...push as much grain onto the market during harvest as possible....even if they don't want it and the pricing signals indicate that....but Cash is King.

Rinse and repeat....until you're washed out!

[ajl]

2019's outlook is worse than the 80's by far although it has a lot in common with it: growing stocks of surplus commodities with rising input costs. In the 80's, all you had to do was have low debt and then things were not bad at all. Mind you everybody was up to their eyeballs in debt at the time. Now what is a guy to do? Selling real estate in Canuckistan and using the proceeds to spend more time down south in Florida would be wise if that was an option for you. But for the rest of us there is no choice but to continue farming and try an make the best of it even for us on more marginal ground. Input suppliers know this. Good jobs are non existent today unless you have connections in government. Farm or long haul trucking is the choice and I know how the answer to that one. For some it will be long haul and try to farm.

[Marusko]

2019's outlook is worse than the 80's by far

Genuine question, what makes you say that?

[macdon02]

You guys are making me bullish....