MOOSE JAW, Sask. – How much shiny iron can a farm have before it’s too much?
That question became a debate during a panel discussion by three members of the board of the Saskatchewan Young Ag-Entrepreneurs.
SYA chair Lynden Butler asked members what they considered to be the two most important agricultural implements. Combines, seeders and sprayers were the answers he received. But Butler told the group’s conference March 14 that his family’s grain farm in Marcelin, Sask., uses older machinery, so the most important implements are the welder and lathe.
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“My dad doesn’t believe in buying machinery, but building it.”
He also noted that the Butler equipment is sized to handle a 2,500 acre farm. So to bring him into the operation, they needed to expand. This year they are farming 3,000 acres but about half of the land is located “170 kilometres and two rivers away.” The advantage of the new site is that seeding and harvest happen two weeks sooner in the southern land so the machinery works that patch first, then moves north. It spread out the capitalization cost, said Butler, and will eventually allow them to farm 5,000 acres with machinery sized for half that.
Darryl Frank of Southey, Sask., also talked about machinery costs in his presentation. He and his dad use a pull-type sprayer because it is cheaper than a high clearance one. They also don’t own a semi truck. Instead, Frank negotiates trucking costs when selling his grain.
“It saves me a lot of time not sitting in lineups for four hours.”
However, he said he does find some use for new ag implements. He spends a lot of time on the computer planning the farm’s operations. He also runs a sideline business doing excavations with a backhoe.
Ryan Anderson, who grain farms with his dad near Fosston, Sask., said machinery is what allowed a dwindling farm population to feed the world. Technology today in the form of computers is what will enable young farmers to succeed, he said. Whether it is buying machinery on EBay or talking with other farmers by website or e-mail, the computer will be tomorrow’s workhorse, he said.
For SYAE delegates, whether farmers should aim at increasing the size of their farms or be content with a smaller, sustainable operation will depend on their management skills and desires just as much as it does on high grain or livestock prices, said panel members
“It’s a comfort zone thing. How much money do you feel comfy borrowing?” said Frank.
Added Butler: “If you can spend a dollar and make $2, why would you stop at $1 as long as the margin is there? Why did Wal-Mart keep building stores?”
But SYA facilitator Daphne Gottselig spoke up for getting away from keeping up with the Joneses.
“Do you need a new skidoo or boat just because the neighbour gets one?” she said.
