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: 34

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

Ontario Agricultural Conference 2024

FINDING NEW WAYS to be more efficient and net better results is always a priority for Ontario farmers; this is also true of the organizing committee behind the 2024 Ontario Agricultural Conference (OAgC) “From Good to Great”. After three years of experimenting with new ways to deliver agricultural information and extension in the wake of the Covid-19 pandemic — in 2021 and 2022, the Ontario Agricultural Conference was entirely virtual; in 2023, it was a hybrid online and in-person event held at Ridgetown, Kemptville, and Waterloo — this year, farmers will have more options to participate virtually or in-person at events in Ridgetown, Kemptville, or Waterloo. HOW IT STARTED In 2021, the organizers of the Southwest Agriculture Conference (SWAC), the Eastern Ontario Crop Conference (EOCC), and representatives from the Ontario Soil and Crop Improvement Association (who formerly organized an agricultural conference annually in Waterloo and Guelph) joined forces to produce an online confer

Quebec market gardeners are switching to less risky large-scale crops

The threat that climate change poses to Quebec’s food security is no longer theoretical: the Association des producteurs maraîchers du Québec (APMQ) says its members, severely affected by extreme weather events, are producing less and less food for Quebecers. “Producers are reorienting their activities to large-scale cultivation where the capacity to operate a farm and risk management are much less important than for a market garden farm,” says the association’s general manager Patrice Léger Bourgouin. Large-scale cultivation crops include grain corn, soybeans, cereals, forage crops and beans, among others. Article content The torrential rains this summer had a catastrophic effect for a majority of produce farmers growing small fruits, vegetables for processing and root vegetables like potatoes. A survey carried out among 250 producers shows significant production losses, with a majority of crops affected not only by rain, but also by frost or hail. Three-quarters of respondents de

Canadian Foodgrains Bank and Viterra mark working milestone

As the hunger crisis persists in many places around the world, Canadian Foodgrains Bank, Viterra, and its volunteer farmers are celebrating their eighth consecutive year of working together toward ending global hunger. In 2023, about 172 acres of land were provided at Viterra facilities in Balgonie, Grenfell and Raymore in Saskatchewan, as well as Trochu in Alberta. Volunteer farmers working at these terminals gave their time and effort to plant and harvest crops on the acres designated for Foodgrains Bank use, raising funds to help respond to hunger around the world through the Foodgrains Bank network.

Fruit and vegetable producers optimistic as Bill C-280 moves to second reading

A bill that will provide fresh produce sellers in Canada with financial protection in case of buyer bankruptcy has moved to second reading in the Senate. Bill C-280, the Bankruptcy and Insolvency Act and the Companies’ Creditors Arrangement Act was adopted by the House of Commons on Oct. 25, with its first reading in the Senate the next day. Presented to the House with no amendments, the private member’s bill sponsored by York-Simcoe MP Scot Davidson was passed with one vote against by Oakville North-Burlington MP Pam Damoff. Why it matters: The bill offers financial protection to fresh produce sellers similar to that offered to counterparts in the U.S. Bill C-280’s deemed trust emulates the United States Perishable Agricultural Marketing Act’s Trust in providing fresh produce sellers in Canada a way to secure payment in case of buyer bankruptcy with no additional burden on the government. Ottawa-based Fruit and Vegetable Dispute Resolution Corporation (DRC) is a member-based, non

Colostrum has value for sick calves

Now they are pushing the boundaries further on uses for colostrum and finding value in feeding transition milk. Why it matters: Heifers that don’t receive colostrum early in life are at significantly greater risk of being less productive cows. “The single most important thing that you can do is ensure that you give colostrum right away,” says Dr. Dave Renaud, a veterinary epidemiologist at the University of Guelph. “There’s no other magic bullet that’s out there. This is the magic bullet.” Colostrum, the first milk from the mother just after calving, is highly nutritious for calves and also gives them passive immunity. Calves are born with no immunity. In 2004, now-retired Guelph professor Ken Leslie studied 500 calves. About 37 per cent failed passive immunity tests and were in the poor category. In 2019, 1,200 calves were studied and 19 per cent failed a passive immunity test. “We’ve had improvement over time, but there’s still opportunity to improve,” Renaud said at the recen

© 2023   Created by Darren Marsland.   Powered by

Badges  |  Report an Issue  |  Terms of Service