Downsizing to Clear Debt - Page 12 - The Combine Forum
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post #111 of 189 (permalink) Old 05-21-2017, 09:03 AM
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I don't think you have to necessarily expand to be sustainable, but you do have to change when it's needed . I also don't think just because a farm or any business for that matter grows means they are greedy.

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post #112 of 189 (permalink) Old 05-21-2017, 09:14 AM Thread Starter
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I am hoping to someday have a farm that will be a viable operation for my kids to take over, if it was just about me making a living that is done (long as I sell out), if that makes me greedy so be it.
Mixt, there is a very high chance this whole industry flips to corporate farming in the next generation, not to the next generation of kids. Your situation may be different, but I dont see little kids riding in the tractors with their dads.

This business is quickly moving to one that is backed by large amounts of capital either from mega operators, or investors or a combination of both.

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post #113 of 189 (permalink) Old 05-21-2017, 09:23 AM
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This business is quickly moving to one that is backed by large amounts of capital either from mega operators, or investors or a combination of both.
Which when you think about it is kinda sad !!
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post #114 of 189 (permalink) Old 05-21-2017, 11:11 AM
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Corporations will not invest in buisnesses unless there is a good return on investment. Investors are fickle. Most people get out when the market plunges. We have not had a string of negative years to test the new scenerio. I think a lot of investors will be gone after 2-3 years of negative returns.
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post #115 of 189 (permalink) Old 05-21-2017, 01:35 PM
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The large corporate model may work on high value Capitol intense, smaller land base. More so the likes of input Capitol and the farmland investor corps are a corporate foray into large scale investment of crop farming in western Canada. At the end of the day a corporate farm almost needs guys with skin in the game at the ground level. One Earth was a great testament to that. If anything you could see a corporate investor backing a farmer and it looks like that is already happening. I wonder though after a couple bad years when the investor bails what happens? We all left the old country to escape the tyranny of feudal landlords and I fear it is coming full circle b
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post #116 of 189 (permalink) Old 05-21-2017, 02:24 PM Thread Starter
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I think a lot of investors will be gone after 2-3 years of negative returns.
SSK, I am not talking about your typical wall street type. I am talking about chinese/indian money who will have a combined population of 3 billion people soon. Plus hedge funds, pension funds and sovereign wealth funds. These guys are all planning 50-100 yrs out.

Some of that money comes in here and who knows what prices could be.
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post #117 of 189 (permalink) Old 05-21-2017, 02:50 PM
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Mixt, there is a very high chance this whole industry flips to corporate farming in the next generation, not to the next generation of kids. Your situation may be different, but I dont see little kids riding in the tractors with their dads.
About 10-12 years ago there were very few young farmers in this area, at the time the outlook on agriculture was grim and most young farm raised men left after graduating high school for the oil patch, some went off to university. Then around 7-8 years ago, when crops started improving, machinery and farming techniques became more alluring and now the majority of those who left are back, riggers and university grads alike.

This area may be an anomaly, but we have a large population of young farmers, by that I mean under 40. It's fantastic to see. I've even noticed that a lot of teenage kids around here act like farming is "cool", and have heard them talking farming in the cafes.

So the future may not be as corporate as you think.
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post #118 of 189 (permalink) Old 05-21-2017, 04:15 PM Thread Starter
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So the future may not be as corporate as you think.
I think locals and local labour will always farm the land, I was talking more about ownership. That will probably be more corporate or large fund in nature.
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post #119 of 189 (permalink) Old 05-21-2017, 05:11 PM
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My brother in law is an accountant. He always has said what he sees from his customers you're either in debt and pay interest, or have no debt and pay income tax. So he always says it depends if you like your banker or the tax man better for who you'd rather pay. I myself prefer to pay the banker cause then that means at least I get to continue operating newer equipment.
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post #120 of 189 (permalink) Old 05-22-2017, 12:48 AM
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Mixt, there is a very high chance this whole industry flips to corporate farming in the next generation, not to the next generation of kids. Your situation may be different, but I dont see little kids riding in the tractors with their dads.

This business is quickly moving to one that is backed by large amounts of capital either from mega operators, or investors or a combination of both.
My boy figures tractors are the best thing in the world right now and pesters my wife steady to bring him out but he's only 2 haha. I'm hoping his interest continues and I will encourage it but u don't see much of that around here.

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