Total Debt to Gross Worth ratio

[jackrussell101]

Hope you don't mind @Bossfarmer but thought this might be a different take on it, and would be interesting to see if the spread of results is alot closer in correlation compared to the monetary values on your thread.

 

[jackrussell101]

@Bossfarmer

 

[Bossfarmer]

Most owner occupier farmers are likely to be in the same bracket though as land is worth so much

 

[organicguy]

When I visited Denmark with our dairy group 15 years ago it was considered normal to have a gearing of 80-90%!!!

 

[SilliamWhale]

When I visited Denmark with our dairy group 15 years ago it was considered normal to have a gearing of 80-90%!!!

Seems a lot to pay for the privilege of milking cows

 

[Pennine Ploughing]

There is no option to vote for money in the bank

 

[7610 super q]

What's next........ " I'm considerably richer than yaaaawww " poll ?

 

[Clive]

Most owner occupier farmers are likely to be in the same bracket though as land is worth so much

same goes for many tennant - borrowed money usually buy assets

 

[Bald Rick]

When my bank manager does the calculations...

 

[Tarw Coch]

There is no option to vote for money in the bank

Or under the mattress

 

[jamesy]

I read somewhere that average gearing of UK farms was 11% I think. With tenants being in the high 20%s

 

[smallholder99]

where do the banks get the money from to lend to farmers

 

[unlacedgecko]

where do the banks get the money from to lend to farmers

Fractional reserve banking

 

[unlacedgecko]

Did this calculation last month. 2020 started ok, picked up brilliantly in the middle and finished fücking awful. Now in a worse position than 12 months ago.

Next 12 months should be good though.

 

[steveR]

where do the banks get the money from to lend to farmers

You can ask @Oxbury Bank and see what they say...

 

[Still Farming]

Assets rich ,penny poor common senario's

 

[unlacedgecko]

Assets rich ,penny poor common senario's

Sounds sh!t tbh

 

[Steevo]

Did this calculation last month. 2020 started ok, picked up brilliantly in the middle and finished fücking awful. Now in a worse position than 12 months ago.

Next 12 months should be good though.

Sounds like pretty standard farmer thinking to me....!

 

[Nithsdale]

I read somewhere that average gearing of UK farms was 11% I think. With tenants being in the high 20%s

WTF why would tenants be running 20%+ debt?

0%. Anything over that is stupidity

 

[BELOWAVERAGE]

WTF why would tenants be running 20%+ debt?

0%. Anything over that is stupidity

Am I missing some thing ?