In attending the Canadian Association of Ag Retailers Icebreaker Reception in Saskatoon, Saskatchewan recently, I got the feeling there’s optimism in the air.
Several people told me it’s not near as negative as some make it out to be. One person in the hotel elevator told me farmers are the eternal optimists – they’ll make it happen.
Yes, that is all fine and good. However, while also being an optimist, I’m also a realist and recognize when farmers get ready to head to the fields, their attitudes change. This year, it all depends how the banker views their finances.
One farmer at Morris, MB told me a few banks are telling some farmers – thanks but no thanks. You’re in fine shape, but two years of poor crops and no inventory, and low commodity prices are make it difficult to pencil out a profit, we don’t need your business. Case closed.
How many of those cases are there, I’m not sure, probably not very many. For a group that’s shrinking in numbers, and for the most part those few are most likely the younger set, two or three is too many. Yes, another bank may look at their case, and may indeed finance their operating loan, but in some cases, no one will. What happens to that farmer and to his land? Someone will farm it, but the mix gets smaller.
For those who are left, who have the finances, and who look for the small niches and little positives, the excitement level rises because ingenuity, new crop prospects, a support industry ready to lend that helping hand, it’s a brand new year. It’s simply, “time to get at her,” as they say . . .