CEBA loan

[GDR]

Glad you were in an area with no hail , frost , drought or whatever. That’s a good thing . But a lot were not . Just keep that in perspective

For sure I understand the ups and downs. No disrespect meant to anyone, just simple math on prices and average yields accross the prairies.

Incidently, we had problematic hail, frost, flood and ended summer off with drought, and still have combining to do. Wheat yielded good, canola and barley were off 25%.

[GDR]

Speak for yourself. Our area has been bombed with shit weather multiple years. The programs don’t work. Prior to that we had good and rhe area next was not good, each time the cycle hits in a bad way good farmers end up done selling out fcc and rhe likes that are supposed to understand only understand if your too big to fail or too stupid to farm they give you a loan to keep going even buy rhe other careful guys out. The programs fail. Nobody cares because someone else who is rhe fcc favourite keeps on going.

The difference between a successful farmer and a disaster is 99% timing. Way too much out of our control for any sane person to do it.

[AlbertaFarmer5]

According to the official records. Both AB and SK the last couple of years averaged ~40 bushel/acre canola.
AB wheat yields in 2019 averaged to 54 (dry land) and barley 72 ( dryland). Both from AFSC crop insurance records.

Sask 2020 estimates:

Average yields are estimated as 46 bushels per acre for hard red spring wheat, 39 bushel per acre for durum, 86 bushel per acre for oats, 67 bushel per acre for barley, 37 bushel per acre for canola, 39 bushel per acre for peas and 1,475 pounds per acre for lentil.

Near as I can tell, none of those numbers at the prices available at the time works out to $500 gross per acre.

[farmaholic]

Interesting comments. To a degree the highest gross is irrelevant if you also have the highest expenses. Net return is where it's at. 500 - 375 or 400 - 225 ????????

Buying inputs at lower than average prices( could of had urea at a bit over $400/ tonne mid summer). Haying enough capacity to buy lots of cheaper fuel when prices are low.

Machinery, buying good low hour well maintained used iron. Fixing stuff yourself. Picking makes and models that retain value. Maintaining your own well enough to help it retain value.
Realizing that book "depreciation" is for accounting purposes only, how many times have you had recaptured CCA? Tells me your iron costs may not be as high as you think.

Being able to store grain holding out for a higher price. Managing cash flow by not having to dump grain into depressed market prices. Selling grain into the top percentile of price range(alot of luck)( hopefully even in conjunction with managing cash flow needs).

Controlling land costs..... not paying the highest rent so the neighbor can't get it. Or renting land to only keep up with friends, family, neighbors, in-laws...... especially if the rent is too high. I'm not even going to talk about buying land.

Insurance(crop)..... is NOT profitable. We got and get away farming without it. Insurance company Actuaries are paid well to make sure claims aren't profitable. Insurance limits losses.

Controlling unnecessary costs, geez.... the neighbor is spraying fungicide with his brand new sprayer......" maybe" I should be too, lol. Geez the neighbor is floating on "smart nitrogen" with his new floater.... maybe I'll have some custom applied. Performing operations "just because", harrowing where there is no need(hired hand needs to do "something"). Spraying in fall when there is no need. Vertical tilling large tracts of land because that $150K machine sitting on the fence line is otherwise a poor investment.... and the hired hand needs something to do.

What's the least you want to net on rented land? Would you want to perform all the farming operations necessary for $50/ac net, $7500 on a 150 acre quarter? Seems like a lot of work and risk for little reward. Hell, the landlord probably makes more some years. And don't justify it by saying it will average out over a 3 to 5 year lease, why rob from Peter to pay Paul?

......wasnt all this supposed to be about a paltry $10,000 forgivable portion of a $40,000 CEBA loan? Or the "improved" version $20,000 forgivable on $60,000( with more questions asked being asked for the top up than were initially asked for the first round?).

Have a good day and farm smart.

[farmaholic]

How many people will collect as much or more to sit at home doing nothing?

And $10-20K is too much to invest in a small percentage of businesses, farms, to help keep the economic ball rolling?

It pales in comparison to what the government has gifted/$pent.

Ya you're right, your contribution to the economy probably isn't worth it!!!!!!!******

Full blown sarcasm.