How are things on the farm?

[GOODRUM]

FCC mailout advising of the they will not be increasing the interest rate on input loans until April 15th. A nice gesture but the unharvested acres will not have changed at that time.
At least it’s something’ though , has anyone at other financial institutions had any concessions?
I heard that one of the bigger credit unions recently acquired the services of a lawyer with the reputation as one of the slimiest in the province, guess they are setting up for a different position.
Gotta love big business hey!

[jazz]

I use this Nutrian Scotiabank line and they give 2 weeks grace which isnt much but something.

[Ronski]

April 15 gives you time to get your 2020 CCGA advance on seeded acres so you can roll the dice one more time.

Lets them kick the can down the road again (I'm told there was no interest on 2018 advances paid out at the new late deadline of December 2019 even without grain sale documentation)

FCC and govt don't want to admit just how close to the edge it is for a lot of guys.

[flea beetle]

April 15 gives you time to get your 2020 CCGA advance on seeded acres so you can roll the dice one more time.

Lets them kick the can down the road again (I'm told there was no interest on 2018 advances paid out at the new late deadline of December 2019 even without grain sale documentation)

FCC and govt don't want to admit just how close to the edge it is for a lot of guys.

Ensures another crop goes in the ground so the leaches have a bit more blood to suck.

[iceman]

FCC was always Feb 15 than the trains didn’t run one year so they extended to mar 15 and left it there. Now you say it’s April 15? I bet they leave it there for next year than.

At some point the can is gonna hit the wall and fly up in the face.

[flea beetle]

Every banker and input supplier you talk to says the same thing....it ain't pretty out there.

[SASKFARMER]

It isn’t pretty. We run zero opp and have been cash for last five years it was a goal I wanted for our size of farm. But with crop out we might have to look at going in and saying please sir I want some more.

Farming what a fun time.

[flea beetle]

It isn’t pretty. We run zero opp and have been cash for last five years it was a goal I wanted for our size of farm. But with crop out we might have to look at going in and saying please sir I want some more.

Farming what a fun time.

That is being financially prudent. Had you not set that goal, you may have been asking please let me farm another year instead of may I have some more.

[iceman]

That is being financially prudent. Had you not set that goal, you may have been asking please let me farm another year instead of may I have some more.

IMO anyone growing the land base +10% per year would not be in that situation. But you decided to grow the working capital which isn’t a sexy topic at the farm shows and now you can weather the storm. Even though you might not like doing it you can still do it with no worries. Congrats

Iceman

[SASKFARMER]

I always felt a farm needs a written plan that gets looked at every few months. I bought land when I thought it was cheap. My banker at the time said rent. Yea great advise.

Now I find equipment outrageous and land outrageous.

It’s also about looking at the big picture.

Went and seen a golf course in Florida that was purchased for $850,000.00. It’s going private membership and million dollar homes around. Little fixer upper.

You can sell lots on 9 holes and still have nine for private use.

Farming and buying land at 500000 and equipment at a million isn’t making money.

Rules in canada hurt farmers.

Crop in the field isn’t fun but it happens ever once and a while. You realize gov programs are useless real fast and don’t help.

Private insurance show me a check.

[bucket]

Can anyone comment on the private insurance and crop left out?????

[tweety]

I often wonder what the percentage of acres in western Canada have inputs borrowed against.

[flea beetle]

I often wonder what the percentage of acres in western Canada have inputs borrowed against.

I would say the vast majority. Went to a retailer to buy some chemical a couple years ago. The lady at the front desk grabbed the FCC clipboard without even asking if I wanted to pay. When I said I was going to pay for it, she said sorry most people put on the FCC account.

[Richard5]

So why do producers let it get to this point? I understand 3 month short term borrowing and sometimes you have to do that but letting a years inputs go on credit 12-16 months is crazy in my world.

Interest rates on some of these accounts gets as high as 9.49%.

[Sheepwheat]

So why do producers let it get to this point? I understand 3 month short term borrowing and sometimes you have to do that but letting a years inputs go on credit 12-16 months is crazy in my world.

Interest rates on some of these accounts gets as high as 9.49%.

It is crazy. But we all don’t have the same equity position, the same success or failure in crops, the same start in farming. Once in that hole, it is almighty hard to extract yourself. Mostly I would say it is an equity problem for mostly younger guys with little or no outside income, poor or no established credit, repeated poor crops, no one co-signing for them, and no or not enough paid for land. Some producers have precious little choice, if they want to farm. And I repeat, once in that position, getting out is a long term hell.

When your banker says farming is not paying for the land anymore, there is a big problem.

It is coming home to roost.