Finally finished all the requirements for a short term renewal (six months) of our dairy operating loan with the bank. Unfortunately it took two months to complete the paperwork and appraisals to finalize the loan.
The bank backdated the loan to Sept 30, 2009, so the maturity date is March 31, 2010. I tried to convince the bank the six months should start from the closing date of the loan, November 20th, 2009, but no dice. Bank said I rode for free for two months and would not adjust the maturity date.
Bank suggested that I continue to look for new financing sources during the next four months in case that milk prices don't improve enough to cash flow and generate profit for the business. Without profit the Bank said it would not be interested in renewal the operating loan.
Hoping and praying for the next four months. . .
Friday, November 27, 2009
Saturday, November 7, 2009
Still waiting for the higher milk prices
Saturday November 7th, 12:15pm and thinking about how slow this month seems to be moving along. Last month when by so fast it was amazing! Final milk check for October milk doesn't come another 10 days!
Have several suppliers asking for payment. I explain to them (again) that it's very difficult to pay 100% of current bills with just 60% of milk check. A few more dollars of the current bill moves into the 15-30 day, or 31-45 day, or 46-60 day, etc., etc., etc. column of the statement.
Trouble is that most of them quit shipping (or providing product) after 45 days past due. We really need a 90 day, same as cash arrangement with our suppliers, but I don't think they'll go for that deal.
Last month's $11.15 advance for October milk didn't go very far. Hoping that the final check will be higher than the advance. All the processors are reporting record profits. I would like to see break even milk prices before the year's end.
Cows are getting closer and closer to be 100% forage based ration. Grains and by-products are again climbing in price again. It seems that every little bit we get in the milk price increases the past month or two has been wiped out by the feed cost increases.
Have several suppliers asking for payment. I explain to them (again) that it's very difficult to pay 100% of current bills with just 60% of milk check. A few more dollars of the current bill moves into the 15-30 day, or 31-45 day, or 46-60 day, etc., etc., etc. column of the statement.
Trouble is that most of them quit shipping (or providing product) after 45 days past due. We really need a 90 day, same as cash arrangement with our suppliers, but I don't think they'll go for that deal.
Last month's $11.15 advance for October milk didn't go very far. Hoping that the final check will be higher than the advance. All the processors are reporting record profits. I would like to see break even milk prices before the year's end.
Cows are getting closer and closer to be 100% forage based ration. Grains and by-products are again climbing in price again. It seems that every little bit we get in the milk price increases the past month or two has been wiped out by the feed cost increases.
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