Ontario Agriculture

The network for agriculture in Ontario, Canada

Question:
You need capital to start making money. You need money to get the capital. How do you get one without the other?

In the past few years we have been investigating different options on how we can generate more cash flow (and hopefully profit) on our little farm in northern Huron Cty. Currently it is cropped, with the use of borrowed family member's equipment. I personally have a preference to do livestock due to the current building set-up on farm.
One avenue we have looked at is the dairy sector (we like cows for various reasons). When talking with bankers - "so how much quota do your parents have?" Oh, so we need "sponsorship" program in order to start. :-)
Lately, with the drop in the value of quota, we have talked about it again. One former banker suggested borrowing no more than $20,000 per kg quota. Yeah - that works great when quota is $25,000. So we start with 6 cows. Whatever.
This is where young folk have an issue with beginning farming. We have ideas that could improve efficiencies, labour management, productivity gains, reducing environmental "footprints"... etc. But to get the "elder" generation to agree is about as easy as moving Mt Everest.
One example I recall from Prof. Kohl was a 60 year old man walked up at a family succession planning meeting. He was interested in talking more about succession planning. Kohl was thinking "Oh he wants to retire and get his son more involved." No. His father and his son were walking up behind him. He wanted to get the farm from his 80+ yr old father, who was using a cane. So when would his 40 yr old son be able to farm? After he is eligible for retirement?
A few years ago every banker was willing to lend hundreds of thousands for a pig barn fully stocked. We always said no since I felt there was no future in pigs in Ontario for me. They also were willing to lend the same amount for a modern dairy - if my father would "give" his quota over.
In a super-big-box store in London one day a conversation with another customer came around to "taking over the family farm". She thought ALL farmers literally gave the farm to their children. because that is what happened in her family, her in-laws, and her neighbours - in the old country.
Well with that kind of capital, why do we need to worry about the question at the start?

Views: 100

Replies to This Discussion

This raises a lot of great points Wayne - thanks for posting it. I know in our case - we're very fortunate to have parents who WANT us there, and know part of us being there is being owners. It also brings up this video with Elaine Froese on AgVision TV - Barriers to Succession Planning - http://agvisiontv.farms.com/default.aspx?vid=vid_342009135751534

Let's get a good discussion going here. Do you agree with those barriers? Any way to work around those.

I know the thing we really have to watch for is around that conflict. We need to make sure we put those conflicts on the table - rather than trying to avoid them. None of us like conflict, but it is something we are going to have to get better at dealing with.

RSS

Agriculture Headlines from Farms.com Canada East News - click on title for full story

Canadian Grain Commission Updates Grain Grading Rules for 2026-27 Crop Year

Beginning August 1, the Canadian Grain Commission will implement updated grading procedures for wheat, amber durum and red lentils.

Cattle industry stakeholders asked to take Canfax survey

Canfax plans to use the input to modernize its offerings

A California farmer is giving away tons of nectarines that he’s not allowed to sell

Thousands of visitors have flocked to Cesar Mora’s farm in central California this week to gather free nectarines. He’s giving his harvest away rather than watching it rot as he’s locked in a legal battle with a company that claims exclusive rights over the variety of white nectarine he grows. He’s shared more than 100,000 pounds (45,359 kilograms) since Monday. “It was really just a thought of not wasting a perfectly good product,” Mora said. “It does make a grower feel good, being able to share my fruit with people and see their immediate reaction that they love it. It’s a little bit of good in this tough situation that I’ve been dealing with.” The legal dispute highlights the tension that can emerge between farmers and the plant breeders and large industrial food marketers that create new varieties of plants and obtain the exclusive rights to sell them. Since 2023, the third-generation farmer in the agricultural community of Reedley in California’s Central Valley has been fighti

Big decisions put many farmers in same boat

There’s a lot of sweating, swatting, squinting — and quite possibly a little swearing — in Manitoba farmyards and fields this summer, as farmers navigate what’s turned into a hellish growing season. Anyone required to work outdoors in the heat and humidity must also suffer through the relentless swarms of voracious mosquitoes and flies brought on by the recent wet weather. The biting insect populations are unlike anything we’ve seen in recent years and they’re making outside life miserable for humans and livestock alike. It adds another layer to the frustration in a season when it seems nothing is going well. With each twist and turn, the “so now what?” questions keep piling up. Just getting around the farm or to town for supplies is a chore with roads and bridges washed out in some areas. And the weather alerts just keep coming — warnings of tornadoes, severe thunderstorms and more heavy rain. Even if fields haven’t been drowned out by the heavy downpours, it’s been difficult, if

Wheat Growers Call for New Thinking on Canada’s Wheat Breeding System

The Western Canadian Wheat Growers Association is encouraging a national conversation about the future of Canada’s wheat breeding system with the publication of a new opinion article by Executive Director Darcy Pawlik in RealAgriculture. Titled “The Problem Isn’t the Cuts. It’s the System.”, the article argues that the discussion surrounding Canada’s public wheat breeding capacity should move beyond annual budget decisions and instead focus on creating a long-term delivery model that strengthens innovation, competitiveness and farmer outcomes. “The conversation has become centred on budget reductions, but that’s treating the symptom rather than the underlying issue,” said Pawlik. “The real opportunity is to ask whether Canada’s breeding system is structured to deliver the greatest possible value for farmers over the next fifty years.” The article highlights successful international approaches, including the United States, Australia and Europe, noting that while each has developed di

© 2026   Created by Darren Marsland.   Powered by

Badges  |  Report an Issue  |  Terms of Service