And so it begins

[jazz]

Diversifying income for farmers in the last 20 years was simply to get more land, rented if it had to be.

This poor SOB doesn't even have a home quarter to live on it sound like. Home quarters are protected in bankruptcy. The guy could have downsized to a few owned quarters live there cheaply, puttered around and the go chase patch money.

My dad always had other incomes coming in so he was never dependent on one. Surface lease, seismic, cows, hay and some grain crops on the side. He also never bought himself crops either like.

[samhill]

Sublet the rental if breakeven or profit and if equity in machinery sell it. If no equity in machinery tell lender he can have it., get it off the property. Just be sure to protect himself. Work the patch or whatever job he can get.
If he can’t see a profit in farming himself and can’t get financing.
First rule if in a hole.

[Taiga]

This is a no brainer. If, as you say, he has the ability to earn good money in the oilpatch, then that is what he needs to do. Hobby farm on the side during spring breakup and road bans (I.e seeding) and on weekends. Cash is king, why waste it farming, it is a dead end. I can’t make a living on my land base, fortunately I am semi retired so it keeps me busy, but I can’t even imagine how much land you would need to make a family living wage these days farming.

[jazz]

but I can’t even imagine how much land you would need to make a family living wage these days farming.

Its the ultimate chicken and egg. I need 2500 acres to make it or whatever, but I cant do it myself so I have to get better machines and hire someone which takes more money to run, so I need more land and on and on it goes. Then you have a kid that wants to come in but you are too young to hand it off, well double acres in one big shot. Meanwhile by doing all that the resulting inflation has driven up land iron and input prices.

[Sheepwheat]

Its the ultimate chicken and egg. I need 2500 acres to make it or whatever, but I cant do it myself so I have to get better machines and hire someone which takes more money to run, so I need more land and on and on it goes. Then you have a kid that wants to come in but you are too young to hand it off, well double acres in one big shot. Meanwhile by doing all that the resulting inflation has driven up land iron and input prices.

Two friends of mine farm straight grain, on less than 1000 acres, raising families with no problem at all. Yet some neighbors struggle with 6000 acres. Guess what the difference is?

[Taiga]

Two friends of mine farm straight grain, on less than 1000 acres, raising families with no problem at all. Yet some neighbors struggle with 6000 acres. Guess what the difference is?

From this document:
http://publications.gov.sk.ca/documents/20/105239-Crop%20Planning%20Guide%202018%20FINAL%20(Dark%20B rown%20Soil%20Zone).pdf


The best case scenario is (was) projected to be canola netting $126/Ac. Next was lentils at $91/Ac.
Only 5 of 11 crops were projected to be positive net returns.

I can say that I agree that best case scenario around my area is $20,000 net per quarter. (160ac x $126/Ac = $20k).

[hobbyfrmr]

Two friends of mine farm straight grain, on less than 1000 acres, raising families with no problem at all. Yet some neighbors struggle with 6000 acres. Guess what the difference is?

Canola, snow, canola rotation with a dash of lentils ?
Lifestyle? They buy a 5 year old wake boat instead of a new one.

[farmaholic]

.....does the farm ever come before the farmer?

Maybe that depends on how much equity you have in it.

I think the worst is when its heritage land and guilt of failure and bailing out overrides sound economic decisions to salvage what equity is left. Lots of different scenarios though....was it gifted on a silver platter or had to pay the family full market value or somewhere in between.

....and then there is farmaholicism, which was defined in a different thread.

[fjlip]

Two friends of mine farm straight grain, on less than 1000 acres, raising families with no problem at all. Yet some neighbors struggle with 6000 acres. Guess what the difference is?

I have posted breakeven numbers before, 2018 ROI equals $158/ acre before any return on investment and labor. Taxable at 176/acre. Was a GOOD yield year, wheat prices better, canola less. We are 1500 acres, grain only, never had more, enough for this spot on earth. Last 10 or so half canola. Wife and I, two sons with full time jobs help, one rents another quarter. Never hired anyone in last 50 years. Never worked off farm. Rarely bought any NEW iron. Maybe some luck, but had disasters in a few years. Only 2 too dry in 50, but many WAY TOO wet. Most of luck is increase in land values, grain prices are way less than 1970's with inflation factor. Those actually were the good days, but never knew it then.

[bobofthenorth]

I have been asked for advice from a young farmer who is so far behind from this year and can’t see it farming this season. I don’t have the answers he needs. Some older machinery partially paid for equipment and rented land. He has the ability to do well in the oil patch. I’m afraid he needs bankruptcy advice but don’t know where to send him. Any suggestions for that advice in Saskatoon area would be appreciated.

There used to be a guy in Saskatoon who the bankers hated to see appear on a file like this but I'm damned if I can think of his name. He left one of the banks and set up on his own and he might very well be retired (or dead) by now. But if he's still there he's definitely the go to guy. His office was on 25th street just west of the Parktown. Maybe somebody else can come up with the name.