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Honored Advisor

Re: heres one link

Well, they say if it walks like a duck, and quacks like a duck....

 

Thanks for the link.  His connection to the bank that he owes $15 million to will be interesting to examine.   Makes you wonder how many more of those big shots will be found out, eventually. 

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Senior Contributor

Re: Illinois Family Farms -- anybody affected?

I would imagine they were the mid teens on acreage.  I remember reading a while back when they were featured on some magazine.  2000 acres to like 13,000 acres in 10 years or something.  At that size even loosing $50 an acre is a chunk of money!  And just speculating when we hear rumblings locally of "Guys in Illinois and Iowa are paying $400, $500 or more in rent on a multi year contracts" this would be the truth to the rumors.  They had an impressive website though!  Lots of new green equipment.  Going broke in style!  

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Senior Contributor

Re: Illinois Family Farms -- anybody affected?

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Veteran Contributor

Re: Illinois Family Farms -- anybody affected?

 But the repo guys that picked up all that pretty stuff stated that the only payment made was the down payment and from then on they were farming for free. 

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Senior Contributor

Re: Illinois Family Farms -- anybody affected?

I don't want to be nosy and don't really think a magazine should be running an article specifically on a guy's failure. But it is just intriguing because of the size of the farm! Anyone who has ever been bumped by a larger farmer or even by this operation is reading this and smiling. I would like to hear firsthand from a landlord, equipment salesman, employee, or neighbor on the specifics so we all can learn from this situation. Lesson #1- never judge a farm's financial health by the equipment in the field!
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Re: Illinois Family Farms -- anybody affected?

They had a bunch of Sangamon River bottom ground that barely got planted in 2009. Even wose than a lot of places you couldn't get that stuff into shape following that rough harvest. 

 

140 yields with a budget for 200, two years running, gets pretty serious. A lot more serious if you try to trade your way around it.

 

When you are at the center of weather hits it is darn hard to see the whole picture. Been there, done that.

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Re: Illinois Family Farms -- anybody affected?

Hi Bruce,

 

Sometimes I'm right, sometimes I'm wrong. I'll plead guilty to having a pretty jaded worldview.

 

But I never cease to be amazed at the smart people who seem to buy each one of these "new and better paradigm" stories.

 

The thing about crop farming, in general, is that you can end up on the short end of the stick for multiple successive years. "Young Tigers" can be defined as people whose timing and luck didn't include any of those. Yet.

 

There is a neighborhood near me that is blessed with very good soils and throughout my life, always caught a rain when they needed it. A lot of good farmers there- who are for the most part pretty darn proud of themselves.

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Senior Contributor

Re: Illinois Family Farms -- anybody affected?

I read an article that said they had 30,000 acres.  Maybe that was stretched a bit, but why would their bank keep lending them money with assets and liabilites like that.  I guess they showed they had the cash flow. 

It proves you can't run forever losing money.  There is a guy around home here that cash rents everything above and beyond what you can ever make off the the acre, there is another young guy that stepped up and out bid him this fall.  So far he can't lock in a break even on that 280 acres yet. 

Weather can break you but if he was that good of a manger and bought and sold the crop on the board he should have bought bushels to match what he couldn't get planted.  

I'm not for sure who owens the ground here he was at, retired farmer or investors but I'm not forsure how it works in Illinois but if they signed a contract for 5 years and the guy went bankrupt can the landowner legally rent that ground to someone else?  

If a landowner would have sold that ground he would of had to honor the contract. 

Not to mention the John Deere dealership, one bank I read was still owned 15 million!!   

How about the guys employees?   

what a mess. 

 

 

Its been 15 years ago now but there was a guy here that rented ground, rent ground, bought machinery, and what not, then one morning a neighbor drove by and John Deere and Case IH where in his shed loading up equipment that hadnt' had a payment made in 2 years.  

 

Learn from someone else's mistakes.  

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Veteran Advisor

Re: Illinois Family Farms -- anybody affected?

This whole story probably reminds all of us of somebody in there neck of the woods. I know this story reminds me of a guy in the next county over who started small and has since done everything under the sun to acquire thousands of acres .... Even if it means screwing over excavating companies for tile work, taking advantage of elderly landowners in regards to land improvements and paying land rents the biggest of BTO's can't touch.... All in the name of becoming a BTO..... And then in the end before they lose the whole thing or end up in prison we will give them a prize.... TOP PRODUCER OF THE YEAR!!!!!!!!

 

 

Stories like this show wholesale greed by not only the farmer but the landowners as well.

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Senior Contributor

Re: Illinois Family Farms -- anybody affected?

Your from Michigan correct?   If so do you still use 8row38 planters in that area.  We still have one and someone told me they go back east to Michigan and Pennsylvania.   Just thought I'd check it out.  

 

kinda of off subject

 

 

 

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