Young farmers face financing issues...an interesting article

[Flatlander]

Here is outside the box, yet has a few similarities to dairy. 43560 square feet of dirt, 600 v 3 ph power, couple or three thousand gallons h2o/ day, a decent shed, good work ethic, and you could gross a half a dozen million/annum for less than the cost of a section of farmland. Trudeaus new ag economy op. Your still a farmer, you can still work through Farm Credit, I bet you can even put 1% in Ag invest and likely even be in Agrivation or whatever they call the other program now.

[Sheepwheat]

Up here one can buy a quarter for less than 200 000 easy. A half is for sale nearby with a house and yard, fences etc. for 400 ish. Too sloughy for the big grain guys I guess? So land costs for sure make a huge difference.

Remember though, when you are talking revenues of thousands an acre, it is not nearly so hard to pay for as one may think.

And you’re also right, it is far too much work for most grain farmers to fathom switching or even accepting it as feasible, let alone doing something to change for their families sake. Too much work year round, too different. Too far outside the box I guess.

I have high hopes though.

[GDR]

Here is outside the box, yet has a few similarities to dairy. 43560 square feet of dirt, 600 v 3 ph power, couple or three thousand gallons h2o/ day, a decent shed, good work ethic, and you could gross a half a dozen million/annum for less than the cost of a section of farmland. Trudeaus new ag economy op. Your still a farmer, you can still work through Farm Credit, I bet you can even put 1% in Ag invest and likely even be in Agrivation or whatever they call the other program now.

I'm guessing you aren't talking fish farming😁

[SASKFARMER]

The Hutts work as long as cheap labour.

Some BTOs are looking at leaving the industry it’s coming.

Maybe one really big one.

Costs are two high for any one doesn’t matter what size your at.


Farms that do the best are family farm or corp that’s 5000 acres and down. Study after study shows this.

[jazz]

I have high hopes though.

I always challenge someone to go stand in the supermarket fruit and vegetable isle once and see how fussy consumers truly are. It will make you think twice before going in with that crew.

I mean farmers have lots of equity, they could buy restaurants or gas stations or apartments or stocks or any number of businesses and really diversify but they don't. 99% will just get more land.

[jazz]

Farms that do the best are family farm or corp that’s 5000 acres and down. Study after study shows this.

I have made this argument before that risk becomes exponential the more land you have to get over and it becomes near impossible to scale enough to mitigate that risk.

I count 10 combines for my Monette neighbors vs 100k acres.

[iceman]

Farms that do the best are family farm or corp that’s 5000 acres and down. Study after study shows this.

SF3 Where did this all start with the bigger is better thing? Lower ure fixed cost, lease etc etc

I remember reading Gary Pike go on about it but someone must have been earlier

Iceman

[SASKFARMER]

If the meat is slightly dark they have to mark it down people won’t buy. Any one who knows aged meat and taste waits and buys.

Yes joe consumer is a funny buyer.

Soon buying apartment block in Saskatoon or Regina is a better investment than farming.

If you buy you need matching paid for property so a 12 million block you need to put that amount up then cant sell that.

But rental is tough.

[SASKFARMER]

A little before Garry they were preaching about it.

Go big or go home and I have watched guys like one earth and Garry and others come and go.

Slow and steady seems to work the best but labour is definitely a issue.

[Sheepwheat]

I always challenge someone to go stand in the supermarket fruit and vegetable isle once and see how fussy consumers truly are. It will make you think twice before going in with that crew.

I mean farmers have lots of equity, they could buy restaurants or gas stations or apartments or stocks or any number of businesses and really diversify but they don't. 99% will just get more land.

Yes, you have to give them reason to pay more for better product, that’s for sure. But once you get there, there’s no turning back. Marketing yourself is huge.