Mortgage rate direction?

[fjlip]

This is what is on my corporate financial statement package.

Working capital ratio - At least 50%.

Target goal of debt to equity would be less than 40%

% owners equity - greater than 70%

I think all of these measurements depend somewhat on ones age and level of comfort. My accountant tells me that he has a number of clients that farm 1500-3500 acres that consistently put up accrued net income earnings of $125-175 per acre and 8000-10000 acre farms that can't get close to that.

Size doesn't always matter, its all management which is a broad term. Imo, its a slippery slope with every increasing technology and sales pitch to drive the latest and the best. Many farms don't have enough annual earnings to support the spending. Its only a matter of time before more and more fall.

Accountant has seconded that opinion, 2500 acre is sweet spot for family farm. Bigger and machinery gets doubled or increased in size to be timely, depreciable investment sky rockets. More hired bodies, more complication, more risk and sh*t happens. Ritchie's has some of that business. If not 2500, go for 10-20,000, the scale seems to cancel costs.

[LEP]

Accountant has seconded that opinion, 2500 acre is sweet spot for family farm. Bigger and machinery gets doubled or increased in size to be timely, depreciable investment sky rockets. More hired bodies, more complication, more risk and sh*t happens. Ritchie's has some of that business. If not 2500, go for 10-20,000, the scale seems to cancel costs.

I think that number is somewhat area dependent. We combine 4500 acres per combine. I can see 3500 working but 2500 would be skinny.

But remember our goal is to reach slum of the ghetto status.

[GDR]

I think that number is somewhat area dependent. We combine 4500 acres per combine. I can see 3500 working but 2500 would be skinny.

But remember our goal is to reach slum of the ghetto status.

For sure area dependent, here we have usually dependable land and likely pretty decent net returns compared to lots of areas, but are definitely limited by environmental conditions. Not really too many operations over 2500acres here and in your comparison 2500 acres is really pushing a combine, pretty well anyone with those acreage will be running 2. Kinda amazes me when you sask and southern AB guys talk about the 10s of thousands of acres. Overall just different scenario I guess.

[farmaholic]

Not o sure about your depreciation comment. Have you ever tried to buy or sell a preowned/used burial plot? Apparently evicting the tenant is frowned upon. Although they did it in Paris and filled the catacombs with the previous tenants.

That plot is more of a long term commitment than an investment.

[farmaholic]

I think that number is somewhat area dependent. We combine 4500 acres per combine. I can see 3500 working but 2500 would be skinny.

But remember our goal is to reach slum of the ghetto status.

You really should aim for Outstanding Sandbox Farmer in the Slum of the Ghetto, I've been vying for it for years, even decades, and bring home the trophy every year! Not much of an honor anymore.....and pissing off the neighbors too.

[AlbertaFarmer5]

That plot is more of a long term commitment than an investment.

If you are not too claustrophobic, could always sublet and make some income for eternity.

[burnt]

If you are not too claustrophobic, could always sublet and make some income for eternity.

Residual income.

[farmaholic]

If you are not too claustrophobic, could always sublet and make some income for eternity.

I'm proud to say there's no "skeletons in my casket".

[albertmads]

I heard a lot of friends, who want to renovate their houses or offices, after this pandemic situation. When you stay a long period of time in one place, you see the whole problems, and changes you should make. I have a friend who renovated his house after the pandemic, and he didn`t have a lot of money, because as you know we couldn`t work. So he asked for a https://www.remonttilainaa.com deal, from a company specialized in this domain. After some talks he had the money in his hand, and after he started to work again, he could easily return the money. I recommend you to do the same.