Young farmers face financing issues...an interesting article

[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.

[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!!