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

CFIA Proposes Changes to Expand Interprovincial Meat Movement

Canada is proposing temporary regulatory changes to support interprovincial meat trade, improve food security, reduce costs for producers, and strengthen rural and remote communities.

American Lentil, Pea Acres Slide from March, Last Year

U.S. farmers planted fewer lentils and dry peas than they indicated in March, with both crops also posting declines from last year, according to the USDA’s June Acreage report released Tuesday. American lentil area was estimated at 747,000 acres, down 85,000 acres from March intentions of 832,000 acres and down 30% from 1.072 million in 2025. Area expected to be harvested was forecast at 701,000 acres, down from 949,000 last year. Montana, the largest lentil-producing state, accounted for most of the decline. Farmers planted 560,000 acres, below the March projection of 620,000 acres and down 270,000 acres from 2025. North Dakota acreage fell to 130,000 acres, compared with the March estimate of 155,000 acres and 185,000 acres last year. Washington acreage was unchanged at 57,000 acres. Dry pea plantings were estimated at 1.047 million acres, down from the March projection of 1.17 million and down 11% from last year. Harvested area was forecast at 1.001 million acres, compared wit

ICE Close: Canola Higher on Return from Canada Day Holiday

Canola futures finished slightly higher on Thursday as the market returned from the Canada Day holiday a day earlier. Modest gains in crude oil provided some support for vegetable oils and helped lift canola, while mixed movement in Chicago soybeans and soyoil kept the advance restrained. Crude oil settled marginally higher Thursday on short covering ahead of the U.S. holiday weekend. Trading was relatively cautious, however, as market participants adjusted positions ahead of another holiday interruption. U.S. markets will be closed Friday for the Independence Day holiday, reducing direction from Chicago until trading resumes next week. Prairie weather also remained a background influence, with excessive moisture in some areas supporting crop concerns, although generally favourable conditions elsewhere and Canada’s larger projected canola acreage limited the upside. November was up 41.20 at $736.50, and January added $1.50 to $745.40.

Manitoba Crops Holding Up Amid Wet Conditions

Manitoba crops remain in generally good condition, even as isolated thunderstorms brought hail, strong winds, intense rain to portions of the province this past week. According to Tuesday’s weekly crop report, weekly rainfall totals ranged from just 2 mm to more than 123 mm, with the heaviest amounts reported near San Clara, Roblin, Waskada, Minnedosa, Manitou and the southern Interlake. Parts of the Northwest have now received more than 150% of normal precipitation since May 1, while the Stonewall area is approaching 250% of normal. Even so, winter wheat and fall rye are flowering and showing strong yield potential, the report said, while spring cereals range from tillering to the flag-leaf stage. Canola development varies widely from the two-leaf stage to early flowering, and soybeans are mostly between the first and fourth trifoliate stages. Excess moisture remains the main concern, particularly in the Northwest, Interlake and low-lying parts of the Southwest. Standing water,

Fireworks, Flavor, and a 250th Birthday: How to Keep Cookout Favorites Food Safe All Holiday Weekend

In preparation for America’s 250th Anniversary on the Fourth of July, the U.S. Department of Agriculture’s (USDA) Food Safety and Inspection Service (FSIS) provides tips for practicing safe food handling when grilling and hosting outdoor gatherings. “The summer heat increases food safety risks, but simple steps can prevent foodborne illness from outdoor gatherings,” advises Under Secretary for Food Safety Dr. Mindy Brashears. “Keeping perishables in coolers or insulated containers, following a two-hour rule (or one hour when temperatures are above 90 F), and grilling meats to safe internal temperatures are easy ways to protect friends and family from harmful bacteria as we all celebrate America’s 250th birthday.” Here are some recommendations for safe outdoor food preparation and serving: Marinating Always marinate meat in the refrigerator, never on the counter or at room temperature. Marinade used on raw meat or poultry must be boiled for a few minutes to destroy any harmful bacte

© 2026   Created by Darren Marsland.   Powered by

Badges  |  Report an Issue  |  Terms of Service