P X Farms

[Chae1]

Imagine what would happen to most of pay monthly generation if interest rates went into double figures.

The country would be fudged.

They say once debt gets past a certain point banks are scared to let you go under, because they have so much to lose.

 

[Mixedupfarmer]

Imagine what would happen to most of pay monthly generation if interest rates went into double figures.

The country would be fudged.

They say once debt gets past a certain point banks are scared to let you go under, because they have so much to lose.

Like Wellgrain? who P X used to haul for!

 

[Christopher Renner]

And one day, owning a lot of land near the edge of the expanding city of Cambridge, the land will be worth considerably more than it is now.

 

[yellow belly]

the problems for indebted ag businesses will be much bigger when or if we Brexit and have free import of grain and no government payment for productive agriculture
land could lose all the gains of the last 10 year and uk grain production fall in half with storage needed at the ports for imports of meat products or feed grains
the farms that weathered the low prices from 2000 to 2007 either had very deep pockets or very low costs or both

imho going forward risk management is the most Important skill to survive till the 2030s

 

[Frodo2]

Imagine what would happen to most of pay monthly generation if interest rates went into double figures.

The country would be fudged.

They say once debt gets past a certain point banks are scared to let you go under, because they have so much to lose.

They say it, but in practice you only have to look at the high street to realise its rubbish, with perhaps the exception of the banks themselves.

 

[fastfish]

Imagine what would happen to most of pay monthly generation if interest rates went into double figures.

The country would be fudged.

They say once debt gets past a certain point banks are scared to let you go under, because they have so much to lose.

You borrow 100 k it’s your problem you borrow 10 million it’s the banks problem

 

[principal skinner]

You borrow 100 k it’s your problem you borrow 10 million it’s the banks problem

Wrong way round? Edit, read it wrong!

 

[David.]

No, you become too big to let fail, in theory at least...
Old boy I remember used to say he didn't lose sleep about paying the bank manager, he let bank manager lose sleep over whether he could pay.
'Spect it was bravado though.

 

[Daniel]

I doubt a £20 million business is anywhere near too big to fail, it would be an annoying day at the office for the bank, but nothing to risk the next all expenses day out at the Lords Test.

 

[No wot]

Right way round , also this - you borrow 100k , you make the appointments with the bank manager , you borrow 10 million he makes them with you

 

[Frodo2]

Also the banks make sure they get paid first.

 

[Frodo2]

Right way round , also this - you borrow 100k , you make the appointments with the bank manager , you borrow 10 million he makes them with you

Only because they think there bonus will be higher and more scope to sell products.

 

[B'o'B]

The bank isn’t going to loose out until the borrowings exceeds the assets. Be that a 100k loan or a 10mil loan. They write off bad debts all the time. If you owe them 10mil and your business isn’t performing as they want, they will come in and tell you how you are going to run the business from now on, charge you for the privilege, force you to manage your business badly and likely make your financial situation worse and then foreclose on you.

P X Farms have obviously put together a compelling business case for the banks to lend them the money and they do run a very impressive business, far far beyond my capacity or desire. If it makes them happy, why shouldn’t they.

 

[Cowcorn]

No, you become too big to let fail, in theory at least...
Old boy I remember used to say he didn't lose sleep about paying the bank manager, he let bank manager lose sleep over whether he could pay.
'Spect it was bravado though.

During the very wet year of 1985 my father met his bank manager at a football match the manager commented that the bad weather must be very worrying for father who replied " not half as fuccking worrying as it should be for you " .

 

[Cowcorn]

A big impressive farming operation around here went bust for something like 15 mill a few years ago against 2mill ish of assets

Banks don’t always get it right

Recent history bears that out !!! In fact monkeys would probably have a better chance of calling it right than bankers !

 

[D14]

And one day, owning a lot of land near the edge of the expanding city of Cambridge, the land will be worth considerably more than it is now.

Not if labour change the rules it won’t. Massive risk buying farmland at today’s prices thinking it’ll be worth £500k/acre in the future.

 

[wellingtonfarmer]

Not if labour change the rules it won’t. Massive risk buying farmland at today’s prices thinking it’ll be worth £500k/acre in the future.

They said it was a massive risk 15/20 years ago when land was 4/5k acre

 

[D14]

They said it was a massive risk 15/20 years ago when land was 4/5k acre

Jeremy Corbyn and that John bloke are the problem now though. Tony Blair wasn’t.

 

[Brisel]

The Blairs made millions in the property boom - they weren’t going to stop that!

 

[Frodo2]

They said it was a massive risk 15/20 years ago when land was 4/5k acre

It was. And still is.