CCGA advance a red flag

[Ronski]

I just got an email that 2018 repayment is deferred till March.
I'm guessing there are some big guys in trouble and they are kicking the can down the road till after the election to keep them quiet.

[farmaholic]

Sign of the times.

Anyone have good contracts with Input Capital?

[SASKFARMER]

They are do far behind with getting money out so have yo do something.

It’s a loan **** canada

[jazz]

So I assume these guys have max advances? $400k or more. Gonna need a big score to take that down. I dont see $12 canola in 6 months. I sense some auction sales coming.

[Ronski]

"Farmers can use the proceeds of a 2019 advance to repay a 2018 advance, as long as they have the security required to cover both advances"
Gonna roll the problem into 2020.

[grassfarmer]

They did the same thing with the cash advance program after BSE to ranchers. I don't think there were ever any big advances that weren't paid back - at least I never heard about them if there were.

[macdon02]

I wonder if the market will drop under the advance rate in the 18 months ahead? Im guessing it will.

[Grahamp]

They did the same thing due to the terrible movement after the 13 crop. I don’t think there was huge default rate because of that.

[furrowtickler]

"Farmers can use the proceeds of a 2019 advance to repay a 2018 advance, as long as they have the security required to cover both advances"
Gonna roll the problem into 2020.

Oh boy , that not a good sign
I wonder how many are going to fold tents and run 🏃???

[SASKFARMER]

The security they have has priority if your a corp the bank and them have everything and if you run you are personally Responsible they have you this down turn not like the last. Corps were set up not for tax purposes but for times like this.

[the big wheel]

Liberals are duds but where is rhe conservatives on this issue? Sask party? Ndp?

[iceman]

"Farmers can use the proceeds of a 2019 advance to repay a 2018 advance, as long as they have the security required to cover both advances"
Gonna roll the problem into 2020.

A rolling loan gathers no loss........ ................. until it stops rolling!

So what exactly are we talking here? Is the advance on the crop in the field? Or is it mainly on 2018 inventory?

If it’s on inventory I think people need to sit down and re-evaluate their grain selling

Iceman

[SASKFARMER]

What Trudeau is doing is getting money out with a repayable loan, so he feels he is doing something. An arrogant prick would think this is such a good idea.

Some will roll there last years forward, and it moves the repayment a year out opening up cash for fall. But if something goes wrong like a bin is lost, or crop freezes this idea fails, and they will always get paid.

Its a loan.

[AlbertaFarmer5]

"Farmers can use the proceeds of a 2019 advance to repay a 2018 advance, as long as they have the security required to cover both advances"
Gonna roll the problem into 2020.

Personally, I like the idea. Or I would be in favor of allowing repayment by any means without having to provide receipts. I was considering taking a cash advance earlier this year on stored grain, but wasn't confident that there would be the chance to sell before Sept 30, so could have ended up being penalized with interest by repaying without proof of sale, so didn't take the advance( and still have the grain..., sorry Iceman).

But I am of the habit of storing grain for multiple years as required to wait for an opportunity to come along, and although that doesn't look like a very smart move with canola lately, it has always paid off very well in the past. Some years I take a Cash advance and make that a little easier, but don't want to back myself into a corner and having to sell by a certain date on the calendar ( and typically the lowest price of the year no less)

[bucket]

I like the idea of rolling the repayment....if it keeps guys from selling and forcing the market to pay up....

It may or may not work but there are production issues not fully identified yet...all over the world...

I think advances should be interest free on the full amount as part of farmers contribution to the economy and the environment that we haven't been fully credited for...

Seems odd that every industry that gets government support has the teaser that jobs are created or maintained....and yet agriculture fires up every year and spends...profit or or not...and yet it isn't seen as an economic driver to the general population...