Saving makes more cents than spending

March 5, 2009

Spending our way out of a recession is a theory most farmers have difficulty getting our heads round.

Those of us who survived the ag-sag of the 80s are haunted by memories of interest rates going above 20% and have no intention of jeopardising our businesses and the jobs of our staff  by spending any more than we have to.

We are mindful that when we stop spending the impact is felt beyond the farm gate. The money from the dairy boom flowed into towns and now the white gold rush is over, the people who service and supply us are losing business.

The ODT reports  that Humes in Alexandra have made 15 staff redundant because of a fall in demand for the water troughs and cattle underpasses they make.

That’s a lot of jobs in a small business in a small town but none of the dairy farmers I’ve spoken to are in the mood for the sort of expansion which would generate the demand to provide work for those people.

When money is tight saving makes more cents – and sense – than spending.


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