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

Five must-do activities with the College of Agriculture and Bioresources at Ag in Motion

Discover the USask College of Agriculture and Bioresources (AgBio) at Ag in Motion on July 21 – 23, 2026! Ag in Motion is the largest outdoor farm expo in Western Canada, located at Discovery Farm Langham. Connect with AgBio at our college’s interactive booth (#328) and throughout the Ag in Motion site. Check off the items below for the best experience. Explore the soil pit. Join us for a soil pit presentation and then go into the soil pit yourself to explore.  Take a photo as a keepsake! Show your AgBio spirit in our photo booth. We have alumni, future alumni and college photo prop signs you can use, along with stickers! Take your photo with Boris the Wild Boar!  Learn about our student programs. Chat with our Student Recruiter about the new programs and hands-on learning experiences available in AgBio. From Agribusiness to Food and Nutrition to Forest Resources, there is something for everyone! Connect with Crop Development Centre experts. Join USask Crop Development Centre (CDC) re

Crop Report for The Period July 7 to 13, 2026

Last week, warmer temperatures, increased sunshine and limited precipitation helped fields to dry, allowing crops to catch up. Producers made progress with spraying and began haying, though high humidity continues to slow drying. Producers remain optimistic while monitoring pests, disease and localized weather impacts. Isolated storms moved through the province, bringing varying amounts of moisture, with some areas also reporting hail. The highest rainfall recorded was 88 millimetres (mm) in the Prince Albert area, followed by 72 mm in the Foam Lake area. The Blaine Lake and Redberry areas received 65 mm and 62 mm of precipitation, respectively.   Despite the relatively warm weather, with some areas experiencing dry conditions due to higher temperatures and wind, topsoil moisture levels in many regions remained relatively stable. Cropland topsoil moisture is: 17 per cent surplus; 80 per cent adequate; and Three per cent short. Hayland topsoil moisture is: 14 per cent surplus; 83 p

More fraudulent equipment sellers popping up

Victims are reporting incidents on the Better Business Bureau’s Scam Tracker

Koch and OCP Expand Phosphate Fertilizer Partnership

Koch acquired a 50% stake in Morocco's JFC I from OCP, expanding a fertilizer joint venture to strengthen global agricultural supply chains following suspended U.S. import duties.

CFA Summer Meeting 2026 Sets Priorities for Canada's Farm Future

The 2026 Canadian Federation of Agriculture Summer Meeting in Halifax united agricultural leaders and ministers to establish policy priorities for Canada's next Agricultural Policy Framework.

© 2026   Created by Darren Marsland.   Powered by

Badges  |  Report an Issue  |  Terms of Service