Payout drop threat to indebted

Stating the obvious:

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.

2 Responses to Payout drop threat to indebted

  1. Judge Holden says:

    It’s OK, the taxpayer will provide a bailout and chuck some goodies like irrigation schemes and dams at you guys to prop up property values. You’re the backbone of the nation!

  2. Mr E says:

    What a silly article. Banks have not lent on budgets over 6.50. Farmers that fail I’m the current market are likely to be due to skill rather than aggressive lending. Banks have not doubt tempered their approach.
    Scaremongering or playing the victim card that fails in my eyes.
    Judge. Good call regarding the backbone comment. The reality is the irrigation schemes benefit the country economics I reckon.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: