- Location
- Peterborough
My father and I bought a 300ac farm interest only in the early 80's which we worried about not long after when interest rates hit 15% . I paid it off a three years ago for a little more than a big combine costs. Then two years ago my son and I have traded up to a bigger farm which will now take his lifetime to fully pay off. He isn't having to buy it off me but the business will have to top up my pension pot.I don't doubt the inflation will get there, £100 used to be a salary.
What I doubt is that the upcoming generation are going to be able to afford to buy out the older generation without some rather large changes in the price of assets versus incomes.
Already the average age of a western farmer is retirement age, which tells you that even their childrens generation aged 40 or so can't afford to buy them out.