BTO bankruptcy. Effect on remaining farmers.

[farming101]

Sometimes landlords are looking for back rent AND the renter....

[Richard5]

[QUOTE=jazz;485686]Here is a profile on these guys.

https://www.grainews.ca/news/diversifying-an-alberta-farm/

This statement was very informative; The farm’s leased equipment lineup is traded and replaced every year, ensuring not only new and reliable machinery, but also the latest technology.

And right there is the problem. Trading equipment every year makes ZERO sense, especially with the debt he is running. If you have everything free and clear and want to do that then fine but it still doesn't make business sense. The next problem is you are a big pawn with the dealers and they are always on your case with the next big deal

Even more slippery when its a lease, a huge false sense of the true cost of use

[jazz]

if I read that profile correctly, this expansion was built off of his parents place which looked to be a (now) smallish mixed farm.

So took down the parents and their original farm too?

One thing to sink yourself but to pull down the previous generation is another.

Sounds like MMT at work.

[Sheepwheat]

if I read that profile correctly, this expansion was built off of his parents place which looked to be a (now) smallish mixed farm.

So took down the parents and their original farm too?

One thing to sink yourself but to pull down the previous generation is another.

Sounds like MMT at work.

Yeah the modest farm wasn’t good enough. “If you’re not expanding your sitting still”. Quite a quote.

[fjlip]

"“If you’re not expanding your sitting still”

I have heard it as going backwards if not expanding...

"One thing to sink yourself but to pull down the previous generation is another."

happened to many in the 80's. For $3 million could double farm size....ah, maybe not.

[crusher]

They may not be dragging the previous generation down. Sounds like some cards were taken off the table.

[SASKFARMER]

Can some one explain to me if your at a size your comfortable with, you enjoy what your doing, your making a profit, why would you want to go up a step or three for twice the work, twice the headache, twice the risk and dealing with all those extra men so you can look like, what?

I would rather be golfing right now, then sitting on my deck enjoying a fun evening spent with friends or family.

This reminds me of 1981 all over again.

Next the interest rates that never would go up will climb and again we’ll have a shit show because even a 29 year mortgage is only locked in for the most 15. Then your paying off the last 15 at a way higher rate and it’s all on principle.
Read history.

But what do I know I’m just one stupid farmer.

[blackpowder]

There is a difference between expansion to stay ahead of inflation and that to stay ahead of the ego.

[jazz]

Yeah the modest farm wasn’t good enough. “If you’re not expanding your sitting still”. Quite a quote.

There is a difference between expansion to stay ahead of inflation and that to stay ahead of the ego.

You can grow your business without buying more land. Any profits could have just gone into the S&P500 which grows at 7-9%. Risk becomes more exponential in farming the larger you get.

I shudder to think how much depreciation this guy paid trading his entire line of equipment every year. I dont know anyone that has ever done that. Shouldnt your employees be able to swing wrenches in the off season? Even getting everything greenlighted every year has to be cheaper.

Where would you even get such an idea from? Trying to duck taxes until you are insolvent?

[Sodbuster]

You can grow your business without buying more land. Any profits could have just gone into the S&P500 which grows at 7-9%. Risk becomes more exponential in farming the larger you get.

I shudder to think how much depreciation this guy paid trading his entire line of equipment every year. I dont know anyone that has ever done that. Shouldnt your employees be able to swing wrenches in the off season? Even getting everything greenlighted every year has to be cheaper.

Where would you even get such an idea from? Trying to duck taxes until you are insolvent?

He didn’t pay any depreciation, all lease, 100% write off. Not saying that’s the way to go but for some maybe, just not me.