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: 70

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

Scrap to Steiger: Teen’s Metal Tractor Turns Heads at County Fair

At this year’s Dodge County Fair, one youth exhibit is sparking curiosity and admiration: a hand-built metal tractor crafted from 120 recycled parts by Columbus FFA member Jack Yelk.

Sustainability and productivity the focus of Manitoba 4R Day

Implementing 4R practices improves agricultural productivity and minimizes impact on the environment, helping farmers grow food in a sustainable way. EMILI hosted nearly 100 people at Innovation Farms on August 6 for Manitoba 4R Day, where attendees learned first-hand from industry experts about how to put the 4Rs – Right Source, Right Rate, Right Time, Right Place – into action. The morning began with a panel discussion between Bryce Geisel from Koch Fertilizer, Lyle Cowell from Nutrien and Marla Riekman from Manitoba Agriculture, moderated by Wendy McDonald from Manitoba Pulse and Soybean Growers, on real-world examples of 4R stewardship practices, common barriers to 4R adoption and use cases of enhanced efficiency fertilizers on farms in western Canada. The audience then rotated between three stations in the field. At the Managing 4R Stewardship with Innovative Technologies station, the audience dove into innovative technologies being tested, validated and demonstrated at EMILI’s

Young Innovators: USask researchers giving canola producers never-before-seen insight into their crops

To get a bigger picture of canola’s growth cycle, University of Saskatchewan (USask) graduate student Hansanee Fernando is turning her attention towards the sky, past the whips of cotton clouds, and into space, where she is harnessing satellite imagery to help canola producers monitor and grow healthy crops. “My PhD work aims to support farmers by identifying key growth stages and estimating yields, or how much the crop will produce, early on,” said Fernando. “I’m hoping to empower farmers to make informed decisions and optimize their management practices while potentially reducing costs, within the growing season.” To achieve this, Fernando is collecting images from open-source satellites and using these to map large scales sections of farmland across Western Canada. While optical satellite imaging is a commonly used technique that captures clear, crisp pictures of the Earth below—like you’d see on an online map—there are certain limitations that prevent researchers from collecting

Shokupan: Baking an Icon

Shokupan bread is just one example of how strong trade relationships can cross oceans, bridge knowledge gaps, and help maintain equitable market access for years to come. Also known as Hokkaido milk bread or Japanese milk bread, Shokupan is a staple food in Japan. Found in convenience stores and bakeries across the country, the iconic, pillowy-soft white bread reflects the fast-paced Japanese lifestyle—where quality and convenience intersect. Shokupan has a complex baking process which is the result of careful refinement of traditional processes and recipes. To achieve the signature fluffy texture and comforting flavour that Japanese customers expect, skilled bakers require ingredients that they can count on. The choice of many Japanese millers and bakers is Canada Western Red Spring wheat, known for its quality and functionality. “The exacting nature of Shokupan production, with its long fermentation process and minimal use of additives, requires wheat with a perfect balance of str

Growing and diversifying ag research

Alberta’s agriculture sector has a well-earned reputation for making the world’s best agri-food products, from high-quality honey to top-shelf triticale. That reputation is owed in part to innovative research the province’s two crop diversification centres (CDC) have been conducting for decades, that directly benefits farmers. With that in mind, Budget 2025 earmarked a total of $5.2 million for repairs, upgrades, replacements and operational support at both CDC North in northeast Edmonton and CDC South, southeast of Brooks. “Alberta’s farmers are the best in the world, driven by a tradition of constant innovation. Investing in our crop diversification centres ensures world-class research continues to deliver practical solutions that help our producers stay competitive.” Danielle Smith, Premier of Alberta The funding supports upgrades and replacements to greenhouses, labs and administrative buildings at both sites. It also funds essentials that have increased in cost, like fertilizer

© 2025   Created by Darren Marsland.   Powered by

Badges  |  Report an Issue  |  Terms of Service