New machinery 10% tax credit ?

[farmboy1]

With the 10% ITC in eastern Canada, it would be interesting to see if retail prices of capital investments are 10% higher.

[MBgrower]

With the 10% ITC in eastern Canada, it would be interesting to see if retail prices of capital investments are 10% higher.

yep, JD tacks on 10% on retail price, and boom!, there goes the savings, nice hand out to JD. Better to have accelerated depreciation in my opinion.

[Richard5]

I would have no idea, but just as someone has stated, it more or less goes to the manufacture of the product.

Regardless, even though I would never boast on here about what I have, where I am travelling this week and what investment property I am being wined and dined on, my hard advice to anyone, farmer to farmer, put a lock on any capital spending for a few years and build a cushion so that you have survive years like this without so much stress.

Many are shooting themselves in the foot by entertaining the biggest and the latest, chasing land purchase and rent rates up. When your bank says no there's a reason. When you hit the 30 million loan cap at FCC do you not realize that's potentially a problem.

I just don't understand today's producers. Maybe I am just too old and am being left in the dust.

Looks like eastern canada gets it and western doesnt
Anyone know for sure ?
Richard , anyone ?

[Taiga]

Local just went under here, had over $8M in debts, and only 1250ac. Claimed revenues of $1.8M on financial statement, yet no deposits were made to bank account. 38 years old. I thought banks did due diligence..??

[Richard5]

Local just went under here, had over $8M in debts, and only 1250ac. Claimed revenues of $1.8M on financial statement, yet no deposits were made to bank account. 38 years old. I thought banks did due diligence..??

That doesn't make sense, that's $6400 debt per acre.

I was always told that once over $1000 per acre total debt things will be a big struggle - Young or old!

Accountant told me a story that a customer was referred to them because of very shitty financials and ugly profitability of the past. This guy said his accountants advice was simply "you need another bank"

wtf?