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: 122

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

North American Agriculture Leaders Back USMCA and Long-Term Trade Stability

Agriculture leaders from across North America have renewed their commitment to maintaining predictable trade rules and strengthening cooperation on animal health, plant protection and rural development.

BASF Appoints Leta LaRush to Lead U.S. Ag Business Amid Major Restructuring

BASF Agricultural Solutions has unveiled a new organizational structure aimed at improving customer responsiveness and supporting its transition toward operating as an independent business.

Canada's Productivity Mega Deduction Could Fuel New Farm and Ag-Tech Investment

The federal government says its new Productivity Mega Deduction represents one of the most significant tax changes in decades, expanding immediate write-offs for business investments.

Agtech innovators to share validation insights at Agriculture Enlightened 2026

Testing and validating new technologies is an essential part of scaling an agtech business. This work being done at EMILI’s Innovation Farms and AIVA Network’s Validation Hubs helps innovators commercialize their products and increases the adoption of their solutions.  During Agriculture Enlightened, Canada’s Agtech Conference, hear from Marcel Kringe, founder and CEO of BranValt, and Katie Friesen, founder and CEO of FarmerTitan, about their experience validating their technologies through the AIVA Network this season. The pair will be joined by Peter Frey, CEO of Spade Technologies, and Darren Anderson, CEO of Vive Crop Protection for a discussion around what they have learned through the validation process in this panel moderated by Chelsea Platzke, board chair of BioTalent.  Marcel Kringe grew up on a family farm in Germany, where he pursued an ag engineering degree. Work and travel studies in Canada, Russia and Brazil led him to move to Canada. He learned English on the go while

Selling grain to an unlicensed buyer: Approval and sampling requirements

Before selling grain to an unlicensed buyer, producers with AFSC production insurance should understand the requirements that apply and the steps they need to take to protect their coverage. Agriculture Financial Services (AFSC) defines a licensed buyer as a grain buyer licensed by the Canadian Grain Commission (CGC) as either a primary elevator or terminal elevator. AFSC only accepts receipted grades on sales from buyers holding one of these licence types. The Commission offers several classes of licences, each with different requirements. Primary and terminal elevator are the only licence classes required to sample grain upon receipt and resolve grade and dockage issues through the CGC. If grain is sold to a grain dealer, private buyer or process elevator before a post-harvest inspection is completed, AFSC may use the client’s samples. However, clients must contact their preferred branch office before moving any grain and obtain approval to collect samples for grading purposes. I

© 2026   Created by Darren Marsland.   Powered by

Badges  |  Report an Issue  |  Terms of Service