Harvest 2023

[furrowtickler]

Maybe increasing land values create a Ponzi scheme type of deal.

About the only thing that makes sense

[AlbertaFarmer5]

Flipping to avoid payments.

Can anyone explain the theory behind this? As someone who's never financed or leased anything, I can't quite picture how this is possible.

[wmoebis]

There are many large farms in the same position in the SW that have not had much of a crop in 3-4 years but are flipping new machinery yearly and buying land like crazy continuously.
It is truly intriguing how they are doing it .
, it makes little sense to most of us average farmers

Not sure if still happens but remember seeing combines and tractors at auction with next to 0 hrs on them and previous owners running other new ones.

You never hear them on boards or advertising how to do it or do they teach that in collage?

[flea beetle]

Can anyone explain the theory behind this? As someone who's never financed or leased anything, I can't quite picture how this is possible.

It is a last ditch effort to survive usually. Payment coming up on the equipment, so they trade it on something else to gain another year without making a payment. Only works for so long until their equity is gone that they have in the equipment. Then they can’t trade anymore without shelling out for the down payment. That is the end of the rope, so to speak.

[wheatking16]

It is a last ditch effort to survive usually. Payment coming up on the equipment, so they trade it on something else to gain another year without making a payment. Only works for so long until their equity is gone that they have in the equipment. Then they can’t trade anymore without shelling out for the down payment. That is the end of the rope, so to speak.

I had a salesman explain that to me 20 years ago. I guess it has been a thing for a long time.

[AlbertaFarmer5]

I had a salesman explain that to me 20 years ago. I guess it has been a thing for a long time.

So who gets stuck holding the bag at the end of the day?

[jazz]

I had a salesman explain that to me 20 years ago. I guess it has been a thing for a long time.

So if you flipped your line using a lease in the last yr, those interest rates are 6-9% now.

So some other company pays out your lease eats that cost and gets you into another color.

These guys in the vid above have gone from green to red and now to fendt in just the last few yrs. Put up a bunch of new bins too.

And buying land how. I am trying to reinstate a $60K credit line I had closed with FCC a few yrs ago and they are pouring over my financials like I just got out of prison.

[fjlip]

Flipping to avoid payments.

So when do the chickens come to ROOST? When will the piper get paid? This is not a FREE machinery market. Big iron manufacturers are to blame.

[BTO780]

So if you flipped your line using a lease in the last yr, those interest rates are 6-9% now.

So some other company pays out your lease eats that cost and gets you into another color.

These guys in the vid above have gone from green to red and now to fendt in just the last few yrs. Put up a bunch of new bins too.

And buying land how. I am trying to reinstate a $60K credit line I had closed with FCC a few yrs ago and they are pouring over my financials like I just got out of prison.

Fendt combines are gone, back to green. He now has a farm started up north. Building bins, renting and buying land. Building bins buying more machinery, driving back and forth 6 hrs between farms. Trucks machinery, sprayers, etc back and forth. Personally I don’t get it.
You would think gas and fuel is .25/gallon.

He favourite saying is “we are always looking to expand”.

[furrowtickler]

Once most of these big farms hit a certain level it’s a different monetary level . In order to keep the hamster wheel spinning they need to expand at 7% per year . That was one thing I was told .
Not in that realm but that’s part of it I think ?

[AlbertaFarmer5]

Once most of these big farms hit a certain level it’s a different monetary level . In order to keep the hamster wheel spinning they need to expand at 7% per year . That was one thing I was told .
Not in that realm but that’s part of it I think ?

Wouldn't that indicate that it is essentially a pyramid scheme? Constantly requiring growth to cover up or paper over past sins?
I've been told that it is very difficult to accurately analyze the finances of constantly expanding business. Only when they are standing still is it possible to understand the whole picture.

[fjlip]

Sounds just like the FEDS, distract, change, update, add civil servants...grow grow.

I really wonder if there is an end game...will there ever be enough or go on till they die?

Heard one say, "it was fun while it lasted"

Apparently nobody commenting is trying this. We all know one of these.

Legacy is what I hear.