Farm Finance like feedlots to dangerous debt.
Farmer can be fed farm finance loans that become feedlots of dangerous debt in succession plans.
Farmers misled
No! I don’t mean feedlots for livestock run by farmers. I mean farmers being fed lots of garbage by big billionaire banks about the benefit of taking a farm loan as part of a farm succession plan.
Farm Finance
That garbage includes putting the younger generation into interest-bearing farm loan, to buy the farm from their parents, then the parents investing that borrowed money with the bank’s investment or superannuation division for which the bank would charge a substantial annual management fee. With increasingly variable seasons, a farm loan can become dangerous debt in one bad season. The word Mortgage literally means “ death Pledge”.
Bank increases profit by 10,000 times
No wonder one bank now earns 10,000 times in real money terms, what it did before de-regulation and bank CEOs earn up to $1million a month. The younger generation of indebted farmers flounder trying to repay that potentially dangerous debt with interest in good times and bad. Interest rates often increases if payments are late.
Farmers’ Friend
With his grandfather and great-grandfather farmers and Greg’s own sheep and cattle properties,
GBAC (Greg Bloomfield Agribusiness Consultancy) has befriended and helped farmers all over Australia to hand on the farm to the next generation, as it moved from Chartered Accountancy to Agribusiness Consultancy. It has never embraced a new farm loan in the succession plan. Yet both generations have got what they wanted.
Whether it is
Succession Planning, buying an extra block, or adding a new enterprise, there are often better ways to do it than by borrowing money from the bank on mortgage that puts the farm at risk in hard times. Money can be borrowed and repaid in the course of farming as required if there are no better options.
Don’t let the bank run the farm
Don’t get fattened up by the bank so that it can profit from your family’s farming effort. You don’t let the stock run the farm. So, it is best to not to let the bank run it either.
