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: 71

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

MLAs clash over foreign ownership of Saskatchewan farmland

The issue of foreign ownership of farmland rose to the surface again at the Legislature. During Question Period last Thursday, the opposition NDP accused the Sask. Party government of not taking the issue seriously and failing to enforce the illegal purchase of farmland by foreign entities. “We’ve been calling on that government from the moment they’ve been elected, and they look the other way and have failed to enforce the law,” said Trent Wotherspoon, deputy agriculture shadow minister. “There’s so much more that we need to do. The Farm Land Security Board needs more resources and real teeth. The fines for breaking the law need to be more than a slap on the wrist. And most importantly, the government must audit and enforce the divestiture of land acquired and owned by foreign entities that have breached the law and caused the forfeiture of profit in its divestiture.” Wotherspoon went on to say that no ‘foreign entity, governments like China or criminal organizations’ should be abl

Federal strychnine ban review may help control gopher ‘plague’ on Sask. crops

Farmers and rural officials across Saskatchewan say Ottawa’s decision to review the strychnine ban could finally bring relief in the fight against gophers. Still, some warn that the solution needs to balance effectiveness and safety. At the Saskatchewan Association of Rural Municipalities (SARM) midterm convention in Regina, delegates announced a resolution calling on the federal government to either reintroduce strychnine or provide a cost-effective alternative for pest control. The once-common chemical was banned by Health Canada’s Pest Management Regulatory Agency (PMRA) in 2023, leaving producers with few reliable options. SARM President Bill Huber told delegates that the association had received a verbal commitment from Ottawa to review the use of strychnine in emergencies, with support from provincial and municipal governments. “We also asked for the reinstatement of strychnine to manage Richardson’s ground squirrels,” Huber said. “They’re not just a nuisance, they’re a plagu

Foreign ownership of farmland a hot topic at Sask. Legislature

The issue of foreign ownership of farm land rose to the surface again at the Saskatchewan Legislature. During Question Period on Thursday, NDP Leader, and Agriculture Shadow Minister, Carla Beck accused the Sask. Party government of not taking the issue seriously.  "Mr. Speaker, the (Provincial) Auditor and SARM (Saskatchewan Association of Rural Municipalities) have both sounded the alarm when it comes to the wide gaps in the system that supposed to ensure that only Canadians can buy Saskatchewan farmland. Will the Premier finally admit what most people on coffee row already understand, and that is that his government has failed to ensure that...those foreign interests can't buy up Saskatchewan farmland." Beck asked. In response, Moe noted "increases in the stringency on ownership in this province" and ensured that "there is an ongoing discussion and a committee that is going to be engaging with (land) owners to ensure that we have this right all the time in this province."  The p

Ag in the House: Nov. 3 – 7

Conservatives targeted the industrial carbon tax and its effect on Canadian ag and food

© 2025   Created by Darren Marsland.   Powered by

Badges  |  Report an Issue  |  Terms of Service