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<blockquote data-quote="midlandslad" data-source="post: 7004463" data-attributes="member: 5349"><p>I think that longer term, the change of support will be a positive move for the industry and lead to greater returns.</p><p></p><p>In the short term though there are going to be lots of farms that are going to really struggle and potentially have to restructure. It is only those that have a truly lean business that are going to survive.</p><p></p><p>There are a lot of farm businesses that rely on the bank to keep going, which is ok whilst that support is there, but it won't last forever.</p><p></p><p>I think that there will be pressure on land prices in the short term as we go through the period of change.</p><p></p><p>I know that you think that value is not relevant to value, however, it must come into it a some point, as the majority of purchasers are farmers borrowing to buy in my experience and they are reliant on the returns to convince the bank to support them.</p></blockquote><p></p>
[QUOTE="midlandslad, post: 7004463, member: 5349"] I think that longer term, the change of support will be a positive move for the industry and lead to greater returns. In the short term though there are going to be lots of farms that are going to really struggle and potentially have to restructure. It is only those that have a truly lean business that are going to survive. There are a lot of farm businesses that rely on the bank to keep going, which is ok whilst that support is there, but it won't last forever. I think that there will be pressure on land prices in the short term as we go through the period of change. I know that you think that value is not relevant to value, however, it must come into it a some point, as the majority of purchasers are farmers borrowing to buy in my experience and they are reliant on the returns to convince the bank to support them. [/QUOTE]
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