And so it begins

[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.

[RD414]

Now hobby, you should go back and read your responses and then you can pick the label you deserve. I’ll try and search the guy in Stoon, thanks Bob, this guy can do well in the patch but needs advice to approach his lenders. He does want back into farming later when he gets his nest egg built back up but needs a bit of time. He has the farming itch so bad but a dry year, poor equipment and snow in September this year and issues last year once again by poor equipment, he is in trouble. He did finance the last go round himself from oil patch work and I have no doubt he will go at it again. He has neighbours calling to rent him land because he always make sure they are paid. As I asked earlier, just need some professional advice for him. Thanks.

[farmaholic]

RD414, What a determined guy. Personally I hate to see good money thrown at Ag, it has no conscience and will obviously take it all if you give it to them. Its a tough gig, high risk, not for the faint of heart or anyone who knows better.

Best of luck to him, sincerely, not sarcastically.

[jazz]

RD414, What a determined guy. Personally I hate to see good money thrown at Ag, it has no conscience and will obviously take it all if you give it to them. Its a tough gig, high risk, not for the faint of heart or anyone who knows better.

Best of luck to him, sincerely, not sarcastically.

I would like to hear more about the bad money we can throw at this monster.

Maybe the guy has an option right in front of him. Subleasing and working for the BTO who takes it on. Maybe fit the patch in too. Sell the equip for now and clear the short term debt and see if there is eventually another entry point down the line maybe even with the help of the BTO.

[hobbyfrmr]

RD414, What a determined guy. Personally I hate to see good money thrown at Ag, it has no conscience and will obviously take it all if you give it to them. Its a tough gig, high risk, not for the faint of heart or anyone who knows better.

Best of luck to him, sincerely, not sarcastically.

Agreed.

[hobbyfrmr]

Now hobby, you should go back and read your responses and then you can pick the label you deserve. I’ll try and search the guy in Stoon, thanks Bob, this guy can do well in the patch but needs advice to approach his lenders. He does want back into farming later when he gets his nest egg built back up but needs a bit of time. He has the farming itch so bad but a dry year, poor equipment and snow in September this year and issues last year once again by poor equipment, he is in trouble. He did finance the last go round himself from oil patch work and I have no doubt he will go at it again. He has neighbours calling to rent him land because he always make sure they are paid. As I asked earlier, just need some professional advice for him. Thanks.

The truth hurts. Lies dont hurt.
If you want to turn his life around , get him to stop farming/renting . Set aside 10% of his net paycheque into a TFSA and buy LBS.TO. It pays out a respectible dividend. Make money while you sleep instead of shoving money up a dead horses(ag) ass.

[bobofthenorth]

Now hobby, you should go back and read your responses and then you can pick the label you deserve. I’ll try and search the guy in Stoon, thanks Bob, .

John Beckton. Its been bothering me all afternoon. Google says he's on College Drive, just a little east of where I remember him.

[bucket]

bucket, we can totally forget about the govt every doing anything extra for this industry. Those days are over and I don't think a conservative govt would do much either. Even if one gets it, it would get punted the next election by progressives anyway.

What farmers need to do is fight back with accountants and corporate structures and laws to protect ourselves from both economic risks and over reach by govt.

I think I forgot to mention the money Canada put into that public show of affection for the Saudi teenager.....

Do you see any programs for our 18 year olds. ...

My kid is paying taxes while Canada has blown over 500k for a photo op....

[RTK]

Yes, John Beckton will be well suited for this file if he is still in that line of business. Nice man and will be honest with this young guy.

[sawfly1]

Without a base of even a quarter.
Pretty tough. And timeing is everything in farming .
Old Equipment is pretty cheap.
It is the rent and costs and the weather
Even oil guys , that have built a nest egg. Say 250,000. You have
Wonder about the wisdom of burning that up in
a one year farm gamble.

Advice is back out, equipment is probably worth nothing
Anyway. Keep what you need to farm a qtr. Or 2.
And still have a life.
Maybe he is too deep for that already.
Lots of people that walked away 30-40 years ago have done quite well.

May be disappointing, but sometimes you get what you need.
Weekends off , less stress and a family life

[GALAXIE500]

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?

My answer(opinion) to your question would be that they don't mind farming with old equipment, and they use some sound financial management to base their decisions on. My wife and I run our business this way , and so far it's been working pretty darn good. Looking across the fence at the neighbors can be really expensive.