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Honored Advisor
Posts: 5,329
Registered: ‎01-10-2012
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One local

High flyer is having his stuff marketed by the sheriff

 

$1,668978.90 + 6% interest from 1/20/17 until satisfied.

 

Most of his Machinery has already found a new home.

 

You can go bid on about 200 acres of pasture quality land, fly in the ointment is you only get his interest in it most has very little paid down so is subject to the first mortgage/land contract.

 

Date of sale 3/14/17 east steps inside of court house.

Honored Advisor
Posts: 5,329
Registered: ‎01-10-2012
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Re: One local

Gonna leave a really big red mark on that banks balance sheet. After what that bank tried to do to my wife several yeas ago, justice was served with a #14 scoop shovel. 

 

I could not have picked a better bank to hold that bag...

Honored Advisor
Posts: 5,329
Registered: ‎01-10-2012
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Re: One local

Wonder how that sized loan went by the bank examiners so long?

 

Freed up quite a few rented acres.

 

 

Veteran Advisor
Posts: 1,237
Registered: ‎06-30-2010
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Re: One local

Back in 1980's, it seemed like the local coops, dealers, banks and PCA's that got hit the hardest, were mostly as a consequence of 1 or a few big customers.  Funny thing, at the time, and now, those customers seem to be the preferred customers for those places, some are even the same ones.

Honored Advisor
Posts: 7,659
Registered: ‎07-18-2011
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Re: One local

It is a different world that it was in the 80's 

Businesses then could say no to any customer and still have enough sales to get by.... now there aren't enough smaller businesses or smaller paytronage to carry the boat just as the farmer can't count on getting a good off farm job to get him by...

Honored Advisor
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Re: One local

[ Edited ]

http://www.agweek.com/news/north-dakota/4218601-high-value-north-dakota-farm-liquidates#.WKSjuSfLA9Q... 

 

ST. THOMAS, N.D. — One of North Dakota's largest high-value crop farms has filed for Chapter 7 bankruptcy in U.S. Bankruptcy Court in Fargo.

McM, Inc., based in St. Thomas, N.D., north of Grand Forks, on Feb. 10 filed a voluntary petition for bankruptcy. The farm is one of the largest farms of high-value specialty crops in the region, including about 39,000 acres, with about 2,000 acres of sugar beets and about 4,200 acres of non-irrigated potatoes in 2016.

President Ron McMartin Jr., 50, lives in Grand Forks. On Nov. 14, McMartin — a large producer of red potatoes and once the largest sugar beet producer in the region — was the subject of a cover story in Agweek magazine and on AgweekTV in which he indicated he was simply down-scaling his operation and had no plans to exit the field. McMartin didn't immediately return phone messages left with him and with colleagues. His attorney, Jon R. Brakke, declined comment.

McMartin had farmed up to 59,000 acres in 2012 and at one time was the No. 1 sugar beet farmer in the region with a total of 11,000 acres. He also raises dry beans, corn, soybeans and spring wheat. In November, he said the farm had grossed about $35 million in crops, which was down from a peak of $45 million in crops during the high commodity prices about five years ago.

McMartin's rise

McMartin grew his farm in the 1990s when farmers ran into problems with fusarium head blight in wheat and some sought to expand into sugar beets and other crops. Other acres came to him when sugar beet producers near the Red River shifted their acres to him in joint ventures in the late 1990s during flood times. Since 2003, McMartin had shifted away from beets and into red table stock potatoes. In 2007, he also rented 5,000 acres of land in the Kindred, N.D., area that became available in a land rental auction. The company recently had shifted its beet acres to a farm centered in the Grand Forks area, where he grew about 2,000 acres of beets, which is not a large figure.

McMartin in late October interviews was upbeat about the future of the farm but alarmed at what he said were incorrect rumors about his demise in farming.

Weather conditions were horrible in the northern Red River Valley in 2016, and McMartin said returns for sugar beets were poor but returns for some other crops were better than he'd expected.

"We're trying to do what every farmer in the Red River Valley is trying to do: trying to make sense with a very challenging time," he said. "We're changing crop mix, land base, input resources, changing everything we can to make things perform better," he said. "Whether we're going to have success, I can't say, but all I can do is try."

More to come

The initial bankruptcy filing indicates there are fewer than 50 creditors, estimated assets of less than $50,000 and liabilities of $500,000 to $1 million, but it is a partial filing. In its filing, McM Inc., indicated it owns property that needs immediate attention. The filing indicated the company has non-insured cattle located in the rural Inkster, N.D., area and potato seed in the Crystal, N.D., area. More detailed filings — likely involving more dollars — are expected by early to mid-March, according to typical bankruptcy schedules.  

Others in financial and legal positions in the region declined to comment publicly, as did landowners who may be affected by the filing.

Copied on case

Among the lenders and suppliers copied on the filing were

Agassiz Drain Tile, Buxton, N.D.;  Agri Financial Services, Inc., Louisville, Ky.; Airgas USA, LLC, Independence, Ohio; BMO Harris Bank, Carol Stream, Ill.; Choice Financial, Walhalla, N.D.; CNH Capital, Phoenix, Ariz.; CNH Capital-America, LLC, Philadelphia, Pa., Crop Production Services, Grand Forks, N.D.; Deere & Company, Moline, Ill.; Deere Credit, Inc., Carol Stream, Ill; Eide Bailly, Fargo; Farm Credit Leasing Co., Minneapolis, Ford Credit Detroit, Detroit, Mich.; General Equipment and Supplies, Fargo, GW & Sons, Construction, Inc.; Hansons Auto & Implement, Inc., Grafton, N.D.; Ironhide Equipment Co., Grand Forks; Johnson Potato Company Inc., Walhalla, N.D.; Kenny Johnson, Walhalla, N.D.; Kinetic Leasing, Fargo, N.D.; Mack Financial Services, Philadelphia, Pa.; Merchant Bank Equipment, Minneapolis, Minn.; Merchants Capital Resources Inc., Winona, Minn.; Metlife Insurance Co., Fargo, N.D.; Midway Seed, Cavalier, N.D.; MW Cornheads, Inc., Hillsboro, N.D.; Narloch Trucking LLP, Grand Forks, N.D.; Nationwide Agribusiness, Des Moines, Iowa; North Valley Equipment, Grafton, N.D.; Northdale Oil, East Grand Forks, N.D.; Pro Ag Equipment Grand Forks, N.D.; RCIS Rural Community Insurance Service, Anoka, Minn.; Reliable Door & Supply, LLC, Grand Forks, N.D.; Stone's Mobile Radio, Inc., Grand Forks, N.D.; T.E. O'Toole Farm Seed, Crystal, N.D.; Thomson and Sons, Inc., Grafton, N.D.; Trinity Trailers Mfg., Inc., Boise, Idaho; Wells Fargo Credit, Carol Steam, Ill.; and Wilbur-Ellis Company LLC, Dallas, Texas

Honored Advisor
Posts: 7,659
Registered: ‎07-18-2011
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Re: One local

No area in the US was hammered by unexplainably negative basis as hard as the dakota's the last two years..  It is unexplainable the basis change in the short distance between eastern North dakota and northern Iowa....

Veteran Advisor
Posts: 2,990
Registered: ‎02-11-2013
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Re: One local

the unexplainable.........greed

 

Honored Advisor
Posts: 5,329
Registered: ‎01-10-2012
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Re: One local

# of problems

 

Wet weather 

 

High variability of value of those specialty crops from year to year

 

Paying more rent than anyone else

 

No storage.

Honored Advisor
Posts: 7,659
Registered: ‎07-18-2011
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Re: One local

Your right hobby...

It is doubling down in vegas.

potatoes, sugar beats, etc are high dollar , high risk , high reward crops...

instead of 200to 500 an acre in costs it becomes $1,800 or more per acre to put in the crop.

 

Couple of years ago we saw a circle of potatoes plowed under for $0 return because it rained and harvest got delayed a few days.  The contractor inspected and they were too big to fit the contract so they were plowed in and could not be harvested because they were under contract.