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: 82

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

McDonald’s Canada and Cargill Further Champion Youth Leadership in Beef Sustainability through partnership with the CRSB

The Canadian Roundtable for Sustainable Beef (CRSB) is proud to announce support from McDonald’s Canada and Cargill for its CRSB Council Youth Position, reinforcing their commitment to sustainability and amplifying the voices of young leaders in the Canadian beef industry. The position, an Ex-Officio (non-voting) role established in 2025, was added to the CRSB Council to ensure youth perspectives are represented and embedded in our approaches to beef sustainability now and in the future. This financial support for the position provided by McDonald’s Canada and Cargill will enable full participation in CRSB Council, member and other events for the next three years. The objectives of this CRSB Council youth position are to provide a platform for youth to actively participate in and contribute youth perspectives to the CRSB; to learn from, engage and collaborate with the multi-stakeholder representatives on the CRSB Council, and to provide youth governance experience and mentorship oppor

Purchasing the right bull can quickly move your beef herd toward your production goals. However, buying the right bull doesn’t start on sale day; it begins months in advance.

Purchasing the right bull can quickly move your beef herd toward your production goals. However, buying the right bull doesn’t start on sale day; it begins months in advance. #1: Establish Short- and Long-Term Breeding Goals Before looking at bulls, identify what you want your herd to achieve in the short and long-term. Your breeding program should align with your operation’s resources, management style and future plans. For example, knowing the traits that you want your calves to have (e.g. lighter birth weight, better growth, carcass quality, maternal traits), will better prepare you to match those goals with the genetic potential offered by available bulls. #2: Determine the Traits to Focus On Based on your goals, determine which traits to select for. As an example, if you are breeding first calf heifers, selecting bulls with higher calving ease is essential. In contrast, if you are not retaining replacement females and sell all calves after backgrounding, consider focusing on

Former ag minister Ritz remembers working with Prime Minister Harper

The former prime minister had his official portrait unveiling last week

Bonnefield joins Canadian Agriculture Investment Coalition

Bonnefield joined an investment coalition aiming to invest up to five billion dollars in Canadian agriculture and food innovation by 2030 to support growth and long-term success.

FCC Rallies Investor Coalition to Deploy Up to $5 Billion in Ag Innovation

Farm Credit Canada (FCC) has convened a coalition of more than 20 investment organizations collectively prepared to deploy up to $5 billion into Canadian agriculture and food innovation by 2030, marking what it describes as a generational investment opportunity for the sector. 

© 2026   Created by Darren Marsland.   Powered by

Badges  |  Report an Issue  |  Terms of Service