Young farmers face financing issues...an interesting article

[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.

[jazz]

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

It started with no till continuous cropping when the input companies sold us that those acres have to be put into production. So everyone was forced to run more acres. Some guys just kept on with that plan and scaled up.

Interestingly while Canada went CC, the US still has land idled in CRP.

[Sheepwheat]

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

Bigger is better has been around since the dawn of time. Bigger is better is not attributable to anything except what happens when land becomes available. When someone quits, there is rarely many thing less than a herd of ppl lining up to get bigger. Has mostly always been this way. Humans are by nature kind of greedy, and kind of envious if someone else gets it.

I have old farm booklets from the 1930’s though, that have some really neat and cool ideas. Some have to do with bigger, most have to do with diversity though...

[ShawnM]

I heard of an interesting exchange between two ladies at the local grocery. One was the wife of a mid size farmer who also operates a small business in town, the other was the 67 year old wife of a local BTO who is aggressively chasing every square inch of dirt he can find.

The BTO wife spent the entire conversation complaining about the 'old' farmers that wont let go of their dirt.

[bigzee]

I heard of an interesting exchange between two ladies at the local grocery. One was the wife of a mid size farmer who also operates a small business in town, the other was the 67 year old wife of a local BTO who is aggressively chasing every square inch of dirt he can find.

The BTO wife spent the entire conversation complaining about the 'old' farmers that wont let go of their dirt.

Please define the following: (in acres)
STO
MTO
BTO

The STO considers the MTO to be a BTO
The MTO ... well you get the point!!

[Sheepwheat]

Please define the following: (in acres)
STO
MTO
BTO

The STO considers the MTO to be a BTO
The MTO ... well you get the point!!

He terms to me are an attitude, not a size. There are some big operators who are normal and considerate, and there are small timers who are pretty tough customers.

For me, it is the attitude, not so much the size. Though often, size DOES play a role in attitudes towards others.

[AlbertaFarmer5]

I heard of an interesting exchange between two ladies at the local grocery. One was the wife of a mid size farmer who also operates a small business in town, the other was the 67 year old wife of a local BTO who is aggressively chasing every square inch of dirt he can find.

The BTO wife spent the entire conversation complaining about the 'old' farmers that wont let go of their dirt.

There are some young guys approaching retirement age themselves who have the same problem, the old farmers (parents) won't let go of their dirt. Not sure if that is good or bad, or if there are good reasons for it, but the end result is at best, the farm skips a generation, but more likely it ceases to exist.

[bucket]

There are some young guys approaching retirement age themselves who have the same problem, the old farmers (parents) won't let go of their dirt. Not sure if that is good or bad, or if there are good reasons for it, but the end result is at best, the farm skips a generation, but more likely it ceases to exist.

I have never understood the sweat equity where guys end up at age 55 with still hoping to farm ....then the rest of the family wants the cash and ...boom....the end...

[SASKFARMER]

That happens more than you know. They always preach proper succession plan and they are correct. Gov can **** that up with changes.

I know a few guys who are in the 50s age and mom and dad still own everything. They are farming and all of a sudden they have to buy out there sisters in the city and all over the country. All they hear is farmland is going up.

Hopefully, my kids don't ever have to buy me out. But Trudeau can screw that up real quick.

Plans are made to be changed and change is good.

[fjlip]

Please define the following: (in acres)
STO
MTO
BTO

The STO considers the MTO to be a BTO
The MTO ... well you get the point!!

Some Acres are higher return, so only applies in this neighborhood, we are STO at 1500, lots of MTO at 3000-6000, and BTO must be the 20,000 acres. All are families/investors, some corps. What do others think?

[SASKFARMER]

Someone was saying a while back the BTO can get an Opp loan against his land. Yes, that is true but say the land is worth 6,000,000.00 He doesn't have an opp at that level they would take it all as security but give the farmers 80% or less or $4.8 mil. But if he is a company and they have all secured as they would once they decide to get tough and call the loan, its 1-800 RB auction and gently get out of farming. Banks don't right off Loans if they are secured. If the loan is sideways and a plan can be made to restructure may be some wiggle but most are done. Corporations it's fast and quick.