I've been waiting for this to be posted, read through all of it over the weekend. We farm right beside some of their land, I said 3 yrs ago it was just a matter of time. I can't belive FCC and others kept giving them money.
You too can pay Pike Management to take your farm to the next level.
The "you too can be a part of our elite group of farmers. We will only take the cream of the crop" sales pitch always rubbed me the wrong way.
This once again proves that you can't hire someone to manage your farm with no skin in the game in Western Canada and be profitable.
These guys couldn't have timed there entry into the corporate mega farm structure any better in my mind and they still failed.
Guess who gets to pick up this tab in the long run!!! Just goes to show size doesn't matter ( so I tell my wife too!! ). I see more of this happening in the next few years in my area, large corporate farms paying anything to get land etc. and not producing anywhere near an average crop even. As soon as investors start losing money they will run like the wind and leave everyone else to pick up the tab.
It's not the size of the farm, or the rent they pay. Gary Pike and other losers that become farm consultants etc, are masters at sucking people in. They go after the low hanging fruit such as a guy that is in financial trouble. The pike team comes in at the advice of fcc or others as an advisor. They will throw money at the guy in trouble and save him from bankrupcy and get the land and keep the troubled guy on as manager. Once they are in an area, they easily add to a farm but raising rents by only 15 bucks an acre. They get the acres built up then comes the investor that wants 5-8 percent returns. Here's the winning play. Every acre pays the pike crew on the top shelf for management fee. Broad acres, Ernie wigmore, young emmel boy from south sask, all get management fees and wages. When they have a hicup, they negotiate even more land at any rent but the kicker is, half the rent in spring and half in the fall. Guess what, harvest is over, enough grain sold to pay management fees, but hang the investor, the 100s of tire shops, dealers, etc.and the second half of the rent. So yes they offer high rent but only pay half. Sad part is, the "cunsoltant" never went broke, broad acres did. It was a plan from the start. Imo.
It doesn't work to be a true corporate farm with investors...family farms can get by with years of low income or no income...we did it in the 80's, 90's and we will do it the next few years coming up because we don't have investors looking for short term gain. Most if not all true family farms are in it for the long haul, ie. generations. It is too bad they started up there and made it ****ty for the true local farmer and businesses but there might be some deals on land to be had for next spring.