A farm accountant is backing the Reserve Bank’s view that a significant drop in milk payouts would leave some highly indebted dairy farmers in trouble. . .
Anyone who’s heavily indebted is in a precarious position if there’s a significant increases in costs or decrease in income.
This season’s payout was a record high one, interest rates have been at record lows.
Anyone but the deluded would know the chances of the payout dropping and interest rates climbing were high.
That some people borrowed heavily in spite of that is inevitable.
Whether or not they can farm their way through higher costs and lower returns is up to them and their banks.