Royal Star Farms?

[Blacksandfarmer]

I heard from a guy at work today that Royal Star went under due to a government audit. Apparently it had something to do with double dipping some government program..... I can't say for certain that's the case but its from a good source. This guy farmed an hour or so north of me so its fairly local news here.

Watching this guy go under this year and Illinois Family Farms last year, it really makes me wonder what goes through these guys minds. I couldn't fathom farming 40,000 acres and employing 70 people. The ag industry doesn't help matters any. We give national awards to the biggest every year and call them top producers. This was prestige farming at its finest.... I don't wish bankruptcy on anybody but I don't feel bad for this guy.

[Nebrfarmr]

My point is, the landlord wasn't the one, that broke the contract.

Yes, they need to weigh the risk/benefits, but taking higher rent, hardly means they 'deserve' to not be paid.

[Nebrfarmr]

We have the 'Nebraska Star Farmer Curse' going on, in Nebraska.  IT seems that the 'spotlighted' farmers, tend to be the first to go under in bad times, and sometimes even in the not so bad times.

My dad once said, that the magazine editors seem to have no respect at all, for the guy with 400-500 acres, who fixes up older machinery, and is farming debt free, but swoon at the feet of the guy, who farms 15,000 acres, and is just one hailstorm away from bankrupting themselves, the local co-op, and a few other businesses.

[k-289]

Nebr  - excellant call --- suppose this will  ''sink in'' to the talking hats that didn't do thier homework on the piece they just boasted about of this train wreck  ---  wonder how this picking up by ones bootstraps will work for the folks taken down by this outfit--- guest the word  " royal " and "star" will have to be wordsmithed ---

[smokeyjay]

They would be listed as creditors, but unless they have an agreement with the tenant as a secured creditor, which I doubt, they would have to stand in line after secured creditors have been paid or satisfied.

[OntFarm007]

How much was he paying for rent? Does anyone know how many acres of each crop he was growing?

[sw363535]

I would not say "cutting corners". Probably just "taking a lot of risk".
Why do these "success" oriented guys miss the importance of time. Making it and loosing it in one generation does not appeal to me.
The sharing and goals and opportunity over time builds great strength.
Should a 40k acre farm need "banks" or own one?