I agree. I've done that once and it wasn't a very good thing
Bought a McMansion????
Australia's political middle ground?
- Thread starter topcropper
- Start date
Bought a McMansion????
The good farm managers will adapt and maintain their comparative advantage. The poor farmers will blame the government/global oil/the international Jewish bankning conspiracy/the banks/foreigners and stick their hand out in the time-honoured fashion.
TF,
You forgot to mention the real reason for most of the "poor farmers", that being drought.
Despite TC's excellent threads about his property and what happens there, the general population has no ideas of the risks in many farming operations, especially those in more marginal areas. The 'economic' reasoning would have us all believe that those who farm in marginal areas are poor farmers, because they have had poor crops for years now. Yet the same farmers were often very good farmers in times of plenty (ie rainfall).
bye
You forgot to mention the real reason for most of the "poor farmers", that being drought.
Despite TC's excellent threads about his property and what happens there, the general population has no ideas of the risks in many farming operations, especially those in more marginal areas. The 'economic' reasoning would have us all believe that those who farm in marginal areas are poor farmers, because they have had poor crops for years now. Yet the same farmers were often very good farmers in times of plenty (ie rainfall).
bye
Business is all about risk. There is no sound reason why a farmer farming marginal land (having paid less for that land than would be the case for more consistent holdings) should expect to receive taxpayer support when the predictable outcomes occur. The ability to prepare and manage your business through normal cyclical events is the difference between a good business person and not.
Should the supermarket owner who buys in a marginal suburb receive interest rate support because that suburb is more prone to economic downturns?
I dunno Bill - I would have thought that if farm land is that susceptible to drought and these natural cycles can't be managed by the farmer at hand, needing perpetual bailouts, then perhaps it shouldn't be farmed? There's plenty of "marginal" farm land that deserves to be be put back to native vegetation. IMO back in the day land clearing went far further than necessary or desirable, particularly in the WA Wheatbelt regions I'm familiar with. But getting many farmers to view drought in these areas as the natural state instead of regular rainfall can be difficult.
And I agree with TC, Australia is far better than most developed countries in terms of agricultural socialism. Worse than most developing countries though, who couldn't afford all the support we give our rural sector...
Unfortunately those farmers sitting behind special subsidies and tariff walls in the developed countries TC speaks of are the main impediment to people in developing countries trading their way out of poverty.
Agreed, but I have found that the majority of farmers I have come into contact with do not strictly treat it like a professional business.
You've got this troika of emotions going on with family home / inherited family heirloom / business. Family heritage completes outranks any notion of business rationalisation.
Typically the grandfather cleared the land, handed it to the father who improved it enormously and finally the guy you are talking to has control of it, and is keeping it for the son/s.
Grandma tended the vege patch until just a few years ago, and is now the family's pride and joy. They won 2nd prize in the pumpkin competition last year.
Barry and Geoffrey are both doing well in the local footy team. Barry's got a good head on his shoulders, we have high hopes for him and will probably be an engineer if he plays his cards right. Geoffrey will probably be the one who eventually stays and works the farm. Jenny is currently top in the region with her showjumping, and if she eventually marries one of the Ferguson boys, she'll be set for life.
The wife is vice president of the CWA and enjoys the social interactions with the other wives.
We held the parent's 25th wedding anniversary in the shearing shed last September.
Sorry...what's that darl ?? There's some city slicker in a suit who's just driven up the driveway in some pooncy little Hyundai wanting to talk about debt reduction, efficient employment of capital and risk mitigation measures.
Christ, I hate these clowns. Righto, let's tell this galah whatever he wants to hear and then get him the hell off my farm.
....and so help me God, if he mentions again that we'd be better to just sell the farm and walk away, or that the bl00dy bank reckons they know more about farming than I do, I'm gonna get the shotgun out this time.
Pretty funny that Dazz. You seem to know a bit about how it all works then? Sounds like just the names have been changed? Were you Barry? Who went off to do engineering and made it big in the oil and drilling industry? Then saw what no one else could in dirt and sheds?
Well done anyway.
See ya's.
No, but I've been around a bit and know how real life works, compared to this unrealistic high falootin' business / risk ether world that we are discussing this subject in.
Real life cuts thru all that HS that previous posters were pontificating about.
CGT exemption is only useful if the house goes up in value
Plus you make it sound liek it's money for jam... however the higher the purchase prie the higher the mortgage, council rates, land rates, insurance bills etc
