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Real World/Real life Financials Course 102
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Deere6
Posted 1/25/2023 06:16 (#10058431 - in reply to #10058300)
Subject: RE: Real World/Real life Financials Course 102


SE IL
LawrenceWelk - 1/24/2023 23:15

Reality speaks - 1/24/2023 09:25

your on to it. some can digest a 40 ac and some can digest 160 ac. Some can digest 400 ac.


Background info: I farm a little bit, and also help with the books for 23 local farmers.

Working capital is a farce. I work with 9 beginning farmers age 17 to 34. A couple of these farmers are on year 9 and 10 of the "beginning farmer" status. Still have hardly zero working capital. But yet they are successful, very competitive, and top performing farms. They do and can repay their debt and obligations every year. Working capital is just a cushion for the bankers.[/

What happens when they have a year they lose money, now at the bank asking to borrow MORE than it takes to put the crop out that year because they couldn’t repay last years? Where do they come up with money for down payment on land? Equity doesn’t pay bills cash does. How much “help” do they guys have from and off farm job, wife’s job, or generation before them? If what you say is true I’m guess the answer lies in my last question.
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