Debt

Discussion in 'Livestock & Forage' started by cattleman123, Jun 21, 2019.

  1. cattleman123

    cattleman123 Member

    Location:
    devon
    Hows it all going to end...All I here about everday is the high level of debt within our industry...the feed rep...the haulier...the machinery dealer...in fact everyone in the agricultural industry talks about it,yes most is secured but it cant go on forever...hows it all going to end ...surely for some in tears
     
    TexelBen, Samcowman, Old Tip and 2 others like this.
  2. Still Farming

    Still Farming Member

    Location:
    Glamorgan Wales
    Bills keep coming in.
     
  3. Jameshenry

    Jameshenry Member

    Location:
    Cornwall
    There is a lot of peoples shoes i wouldn't like to be in that's for certain,
     
    Old Tip and Timbo like this.
  4. ridger

    ridger Member

    Beef is no good all year
     
  5. DrWazzock

    DrWazzock Member

    Location:
    Lincolnshire
    I have never been in debt but this time I am getting very close to running out of cash before the lambs start to be sold.

    We will make it through but it really is quite desparate. I have cancelled magazine subscription direct debits and every non essential expense just to keep us afloat so we can buy stuff like fertiliser and vaccines. The price of beef has also severely dented my cashflow. Arable harvest prices are OK but not earth shattering. Expenses rise relentlessly.

    I also don't know for how much longer it can go on. I have no intention of starting an overdraft. If it comes to that, then I will sell up, go live in the south of France and sod the feck in hay and all the rest of the bollox.

    And when all the sales people ring up next year and tell me of their 5% rises and think they have me over a barrel because I'll just keep on soaking up this sh!t, i will tell to sling their hook and find some other other mug to sustain their lifestyle.
     
    former farmer, JHT, st piran and 47 others like this.
  6. Kiwi Pete

    Kiwi Pete Member

    Location:
    Owaka, New Zealand
    As long as the debt can easily be serviced then....

    The main problem is that money is far too cheap, and the main economies are all heading for a recession as the truth catches up with the big spenders - our governments

    .. compared to gov't spending and borrowing, what we do amongst ourselves really is small change.
     
  7. Northeastfarmer

    Location:
    Cleveland
    Better to go to bed supperless than rise in debt
     
    JHT, MF135, DeeGee and 9 others like this.
  8. DrWazzock

    DrWazzock Member

    Location:
    Lincolnshire
    Correction. I won't be moving to the south of France. I'll be moving to lincoln where there is at least some form of social life, something more than just endless manual labour for pennies. I reckon I have been barking up the wrong tree all my life.
     
    Juggler, Kiwi Pete, Kevtherev and 4 others like this.
  9. Can I come and visit please.... I'll be a few miles away, somewhere between the Pyrennes and Med!! :D


    Later: Hmm now the offer is somewher between Lincoln and the North sea?? Maybe not!!
    :cautious:
     
  10. DrWazzock

    DrWazzock Member

    Location:
    Lincolnshire
    But if I move into debt it's a trend that does not bode well. If, after all these years being debt free, I move into debt, then it tells me it's time to stop as I am not holding my own rising expenses.
     
  11. Kidds

    Kidds Member

    Location:
    Warrington
    Well done you if you can recognise that, an awful lot seem not to.
     
  12. Kiwi Pete

    Kiwi Pete Member

    Location:
    Owaka, New Zealand
    It depends what the debt is for.

    In many instances that's correct, but many are simply living off depreciation of "owned assets" which is possibly actually a worse financial position to be in?
    The tail soon wags the dog in that example, as well.

    In an unviable business context, either is digging a hole deeper, but in a viable business debt is simply an input like any other.

    Few get very far using their own money exclusively.
     
    IEM, Clever Dic, lloyd and 8 others like this.
  13. Jackov Altraids

    Location:
    Devon
    It is a mad bad and sad world we now live in.
    The Combination of capitalism and globalisation has enabled the extreme rich and privileged few to take wealth from all in a way that has never before been possible.
    Our futures have been pawned for a slightly easier world today.
    The government have been complicit in allowing private profiteers to get their hands on money streams that shouldn't exist. They've sold off assets to be rented back, opened the safe door to peoples pension funds, allowed the values of homes to be equity released.
    They have effectively borrowed a years tax by moving from paying arrears to immediate collection.
    Borrowing in business is essential for starting, expanding etc but it is not sustainable if a whole sector of industry is being propped up with borrowings.
    Private debt should only be for short term cash flow emergencies and long term major purchases.
     
  14. Forage Trader

    Forage Trader Member

    Location:
    Ceredigion
    Everyone seems to be living from hand to mouth, farmers and those that supply and service them
     
    rob1, s line, DrWazzock and 2 others like this.
  15. Kiwi Pete

    Kiwi Pete Member

    Location:
    Owaka, New Zealand
    Too right they are complicit.

    How our governments behave is both morally and ethically unacceptable, but we must remember that these cretins are actually products of "the system" themselves, so perhaps don't see the problem with this weird mishmash of capitalism and socialism?

    The result is we are getting the worst of both; an enabled underclass with no need to be productive, a struggling working class, and a handful (relatively) of elite walking away with full pockets. It didn't happen by accident, business and banks rule the world.
     
  16. neilo

    neilo Member

    Location:
    Montgomeryshire
    There’s nothing wrong with debt, whatever the size, so long as it’s serviceable. Having debt as a red line is just daft imo, if it means you miss an opportunity. But hey, each to their own.:)
     
  17. Forage Trader

    Forage Trader Member

    Location:
    Ceredigion
    Lot cant

    Dont think many realise how bad it is out there, Dairy being the worst effected.
    I ain't defending it or criticising it , but that's how it is .
     
    Headless chicken likes this.
  18. livestock 1

    livestock 1 Member

    A human being doesn’t live long enough to develop a business from year to year profits without lending unfortunately. Especially considering the best working years of a person
     
    Dkb, Pigken and Lazy Eric like this.
  19. Forage Trader

    Forage Trader Member

    Location:
    Ceredigion
    Are we talking about managed dept or those who cant afford to pay their bills
     
    cattleman123 likes this.
  20. Slightly off topic but I went for a look round some car showrooms last weekend as I was tempted to change. Current car is on a hire purchase as I was fairly frugal through first year of university and decided it was best to put a bit of money into the car to begin with to stay away from the PCP type deals.
    Looking round the showroom and all the sales people want to push me into cars that I know I can't afford but they think I can. To me, the important figure is the "total price payable" one as that's what the car is going to cost you one way or another. "Ahh don't worry about that they preach, you'll never pay it, we'll have you in a new car by then".
     

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