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: 90

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

Hursh: Court documents reveal scope of Monette Farms' financial challenges

As reported on Wednesday, Monette Farms and its many affiliated companies have filed for creditor protection. The court document filed at Court of King's Bench in Calgary provides insight into the size and scope of Monette's operations and the extent of their financial difficulties. According to the court document, the Monette Group forms one of the largest private farming businesses in North America with operations in Alberta, Saskatchewan, Manitoba, B.C., and the states of Montana, Colorado and Arizona. The group owns approximately 274,000 acres of land and leases approximately 218,000 acres. It also has seed processing and produce storage facilities. The restructuring plan is debtor-in-possession financing, because the applicants are insolvent and don’t otherwise have the finances to seed a crop this spring. Monette did recently sell some farmland, most notably about 13,000 acres near Stewart Valley, Saskatchewan for $54 million. Subsequent activity resulted in two more sales t

Removal of non-tariff trade barrier for flaxseed to the EU reflects confidence in Canada’s agricultural exports

Canada is one of the world's largest producers and global exporters of flaxseed. Our high-quality products are enjoyed by millions of people around the world on a daily basis. May 1, 2026, will mark the official termination of the longstanding Sampling and testing protocol for Canadian flaxseed exported to the European Union (the Protocol). Removal of this non-tariff barrier, that has been in place since 2009, is a recognition of the safety, reliability and quality of Canadian agricultural and agri-food exports. This demonstrates the strength of the Canada-EU Strategic Partnership and a shared commitment to resolving long-standing trade irritants through cooperation and dialogue. In July 2009, trace amounts of an unauthorized genetically modified flaxseed called CDC Triffid was detected in a Europe-bound shipment, leading to the immediate and temporary cessation of flaxseed exports. Following the detection, AAFC worked diligently with the Canadian Grain Commission (CGC), industry par

Cereals Canada Releases "Securing Global Markets for Canadian Wheat" Report

Cereals Canada today released its new report, Securing Global Markets for Canadian Wheat, during a webinar that brought together farmers, researchers, plant breeders, and value chain partners from across the sector. The report outlines how targeted market development, technical engagement, and science-based policy advocacy are helping to protect, maintain, and grow global demand for Canadian wheat in an increasingly complex trade environment. Canadian wheat is exported to more than eighty international markets each year, with over twenty-eight million tonnes expected to ship globally in 2025–2026. Canada is the world's number one exporter of durum wheat and oats and is on track to be the third-largest wheat exporter overall, reinforcing the importance of diversified and stable international demand. The Securing Global Markets for Canadian Wheat report provides a snapshot of six international markets that were part of Cereals Canada's 2025 market development activities. These activiti

Monette Farms Seeks Court Protection as Mega-Farm Restructures Amid Financial Pressures

Monette Farms has entered court-supervised restructuring under the Companies’ Creditors Arrangement Act while continuing operations across Canada and the United States.

Removal of non-tariff trade barrier for flaxseed to the EU reflects confidence in Canada's agricultural exports

Canada is one of the world's largest producers and global exporters of flaxseed. Our high-quality products are enjoyed by millions of people around the world on a daily basis.

© 2026   Created by Darren Marsland.   Powered by

Badges  |  Report an Issue  |  Terms of Service