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Advisor

Re: Re:Bins, I'm right behind you..

terrible time to have a farm auction. cannot imagine anyone pushing a bid right now.

as far as having more storage than the local elevators did...most of the small elevators are now owned by private farmers, and are only part of their total storage. I probably have more total storage than most elevators did 50 years ago, and it's doubtful if I am not even in the top 50 in my county. My goal was to be able to fully two years of crops and that has been accomplished.

The lesson learned from the grain market crash, or more accurately the market inability to rally, is that you should never assume anything....the assumptions here being that a normal spring rally would occur and that two black swan events would occur in the same couple of months. And spring has just begun...just saying.

And who knows where things will be by fall...a lot has happened in the last couple of months...a lot more can happen in the rest of the year, too.

Last year should have taught us that the crops just don't jump into the bins, right?

Honored Advisor

Re: Re:Bins, I'm right behind you..

since we're sorta talking about farm sub entities.......... I want to quote a line from my favorite movie of the moment....

"He loves that Goat"-- From  movie "Terminal"

https://www.youtube.com/watch?time_continue=24&v=xrTUmYxnNlo&feature=emb_logo

 

My dad taught some important difficult lessons...... one of them was --- when things are most difficult like on the worst of days, tackle the hardest jobs.  

I been afraid of failure for 5 years....... don't have to explain that one to anyone.....   So mid point in the worst of all possible years My sons ask me if it would be possible to divide the farm and presented good reasoning..... (I am the accountant in the business and designed most of the framework we operate with,  I was flattered by the request, because I understood the motivation= stressful but all good)  I had 6 months of difficult deconstructing and reconstructing, tax issues, estate issues , fsa issues. labor issues.  --- when things are at their toughest IMO, it is the best time to make the hard changes.  Lay on top of that when you been looking up at a breakeven point it is a difficult time to make financial changes.... a wonderful opportinity for a lender to lay off risk he is nervous about.  Well this is preaching to the choir,,,,, but we got her done... sort of ... financing sources for two different operations --equipment split, inventory moved and split leases split..... and still neighbors  ..... But smack in the middle of it all we faced the "goats".............

One son is his grandfather and loves the crop in the field with water he can control,  One son loves the livestock,  will raise a good crop too but wanted the cattle and me and the other son agreed with a smile.  Cows are his....truth is we all had more to do than we could get done.......................After two generations of hard work things had broken our way, but this is still 2019 and life is a tough struggle... and the things we want are not necessarily good for us.

Downsizing was not my choice but not everyone has my management desires and background.... and an unforseen super plus appeared.   Enthusiasm to manage and make something of what is mine. is not necessarily greed or envy but rather the thing farms run on when the tank is low.  I saw a spark that told me this was not a bad move..... two were happy, with no idea of how it will turn out there were smiles.

And finally we faced my GOAT----- Grain storage...I never realized until that day how much I liked it and cherished it.... I protected it.... the other thing lost money or cost too much but the grain storage always made money in my mind. (and believe me I know how to analyze financial activity----even accountants have bias)  I grew up envious of the advantage that established farms had getting that extra 20 cents a bushel direct to feedlots or dairies or Flour Mills...(think what 20 cents means when corn sells for $1 to 1.25.  )   When we finally had a chance to do it we did it to my standards and for the ones who didn't love that Goat, its lots of work and more "accounting".

Point is do the sub accounting...... does that asset pay?  Do you make it pay?   Do you treat it fairly?  

I remember going home with some friends to Hunter Ks for a weekend and they had dairy cows no one liked except the lady of the house and son who milked twice a day.... Does it make money?  "I love to do it, reminds me of my dad"

There is some serious value there.   But------- my advice ..... always know your Goat.   And never favor your goat and starve your chickens

Main point...... Find your Goat...... Loving what you do is still most important..... and always most important when it is difficult times.

 

 

Advisor

Re: Re:Bins, I'm right behind you..

I recall an old saying to me a number of years back “Have you noticed that these guys are building the new generation of HarveStore silos?”.

Veteran Advisor

Re: Re:Bins, I'm right behind you..

Been calling them blue silos "tombstones" for many years.

Only know of 1 in our area that is still being used for high moisture corn,

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Advisor

Re: Re:Bins, I'm right behind you..

virtually every farm with a harvestore around here experienced bankruptcy or financial distress in the 1980's. I believe that the same mentality that was sold one of them also got sold a lot of other non-productive assets, or under productive ones.

Great example of Tom Hanks at his finest in the movie clip...he might be out to lunch politically, but the guy can act. And who knows what he personally believes....he married that liberal Rita Wilson from the Pacific NW and has to toe the line or find the curb like a lot of guys. Once he went all gaga over her and left his first wife and kids, his die was cast.

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Honored Advisor

Re: Re:Bins, I'm right behind you..

 

Bruce,

-----Great analogy......one of the worst problems of time..   We are always fixing problems we had 30 years ago because now we got the money or the borrowing power.  Which can easily be spun off into a discussion of the ills of locking down interest rates at the federal level... We could probably do a long thread on "not so" wise purchases because of that policy.

rsbs,

there is a great expression he did at the golden globes that I consider the "face" of 2019...... He's not my favorite actor, but he is smart and knows how to survive in the field  where he is planted.  Deserves credit for some terrific work.  May be a better actor in public than in front of the camera, but sure knows a great story...... One of the few entertainment leaders that is wiser than his emotions....  I can't tell how he felt at that moment, what a great expression...

 

I felt like that all of 2019I felt like that all of 2019

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