Don’t tell people what you know, KEEP THEM POOR!

[True Grit Farms]

I just can't see taking on any debt just to be able to farm. I can see acquiring debt for some commercial rental property but to farm makes no sense at all to me.

 

[CattleMan1920]

I just can't see taking on any debt just to be able to farm. I can see acquiring debt for some commercial rental property but to farm makes no sense at all to me.

Depends on what you are farming. If you are Connealy or SAV then capital investment is a must, if you have a hobby farm or have cattle just to mow the farm,with no regard to quality, then by all means refrain from spending and keep expenses rock bottom.

I like the commercial rental property comment, warehouses and industrial space makes sense to me.

 

[greybeard]

I just can't see taking on any debt just to be able to farm. I can see acquiring debt for some commercial rental property but to farm makes no sense at all to me.

I can see some as short term capital improvements being justified, just as I can see a house mortgage or truck note being justified. There are 'some' advantages to using Other People's Cash instead of your own, even with interest cost but there has to be an end game, and not just re-rolled over and over again year after year where one is always indebted..

Even the largest and most profitable companies in the nation have short term debt. Look at companies' annual report and it is plainly stated. Exxon, Microsoft, Dow Agra et al..

 

[herofan]

I'll just totally revamp all my ways and do what the guy prescribed in the video. No more discussion needed. It's that simple. .

 

[TennesseeTuxedo]

Cheap, old, versus new and expensive are opposite ends of the same heavy and cumbersome stick.
Some of these comments are really good and I think shows some posters understand that.
Those that think it is just one way or the highway need to read up on the principles of increasing, decreasing, diminishing returns.

I remember the time when there was good money in farming and the prevailing advice was expand and plant fence row to fence row.
Lenders were throwing money at farmers and they were buying new and expensive equipment.
I remember a picture I saw of an old farmer puttering along with his small, older, paid for tractor.
His neighbors had the latest in new equipment and their production certainly dwarfed his.
He was just an ignorant, old fashioned farmer. Or so the smart hot shots thought.

The next scene was of the "modern" farmers losing all that land and equipment at a bankruptcy sale. Suicides were up. They were devastated.
The old farmer on his small, old, paid for tractor, on his smaller farm. was still operating and making money.

My point is it is not just rich Dad or poor Dad--but sometimes frugality and common sense.

One thing is for sure, nobody has thrown money in our direction. If anything the local bankers cracked jokes about what we were doing and lent to the Amish instead. That's not looking like too good of a bet now that dairy has collapsed and tariffs have set in. What looked like a sure thing is looking shaky now for the local lenders. I'm seeing more and more Amish at Angus sales, and they are bidding. It appears they see Angus as a better bet than Holstein.

Nothing we buy here at Branded is for frivolity, everything is paying off. If it cannot be used, and used to make more money, it's not purchased. Plain and simple.

A few years back we were chatting with a lender at Farm Credit, he was a genius in his own mind, he rolled his eyes and said that our plan to AI 50 cows was overly ambitious, now that number seems easy. Will I ever ask for his help again, h.ll no! I viewed him then as a piker, and now I am sure of my views.

Disclaimer, there were some gals at Farm Credit that did take us seriously and helped us immensely in the beginning. They will always be remembered and appreciated for what they did, and will get our future business when we need funding.

That was sort of my point about gouging neighbors on hay. People remember, good and bad.

 

[CattleMan1920]

I'll just totally revamp all my ways and do what the guy prescribed in the video. No more discussion needed. It's that simple. .

There are some good points in the video. Small changes can have drastic effects later, in a good way.

 

[Lucky]

I just can't see taking on any debt just to be able to farm. I can see acquiring debt for some commercial rental property but to farm makes no sense at all to me.

Are you saying it's not smart to borrow any money at all for farming or ranching? No money for land, equipment, cattle....nothing? I borrow as little as possible but definitely don't have 200k for a cattle deal or 500-800k for a land deal laying around.

 

[CattleMan1920]

I just can't see taking on any debt just to be able to farm. I can see acquiring debt for some commercial rental property but to farm makes no sense at all to me.

Are you saying it's not smart to borrow any money at all for farming or ranching? No money for land, equipment, cattle....nothing? I borrow as little as possible but definitely don't have 200k for a cattle deal or 500-800k for a land deal laying around.

Ask any truly successful businessman or businesswoman and they will tell you that leverage is a tool to use wisely, and if done so will increase your returns.

Leverage has demolished a lot of people and businesses, just look at what happened to Windstream lately. But if you use it wisely, you can exploit it, not the other way around.

To just make a blanket statement that all borrowing is bad is to not truly understand the power of leverage when it works in your favor.

If a bank will lend you money at 6% and you make a 15% return with that money, you win! You allocated that capital better than the lending institution could.

I'm sure there are many on here that if the funds were available that they could make that money work for them.

The real estate business is built on leverage, take it away and hardly anything would move.

 

[TennesseeTuxedo]

I always get my financial and life advice off the internet. Thanks brook!

Me too, particularly from people more successful than I am.

 

[Bestoutwest]

I'm not going to read all 8 pages. Here's what this thread is about: Branded is rich. Everyone else is stupid. Poor people suck. They're losers. Rich people are better, even if they were born into it. Grit still hates liberals.

You're all welcome, I saved you some time.

 

[ALACOWMAN]

I'm not going to read all 8 pages. Here's what this thread is about: Branded is rich. Everyone else is stupid. Poor people suck. They're losers. Rich people are better, even if they were born into it. Grit still hates liberals.

You're all welcome, I saved you some time.

What I get from it is ,Branded is not rich, but wants too be...and the lib's ain't gave Grit a reason too even start liking em.. :lol2:

 

[ALACOWMAN]

I always get my financial and life advice off the internet. Thanks brook!

Me too, particularly from people more successful than I am.

thanks to my grandmaw for showing me the way to be successful..

 

[jehosofat]

I'm not going to read all 8 pages. Here's what this thread is about: Branded is rich. Everyone else is stupid. Poor people suck. They're losers. Rich people are better, even if they were born into it. Grit still hates liberals.

You're all welcome, I saved you some time.

I'm with Grit. :lol:

 

[True Grit Farms]

I just can't see taking on any debt just to be able to farm. I can see acquiring debt for some commercial rental property but to farm makes no sense at all to me.

Are you saying it's not smart to borrow any money at all for farming or ranching? No money for land, equipment, cattle....nothing? I borrow as little as possible but definitely don't have 200k for a cattle deal or 500-800k for a land deal laying around.

I worked 35 years to become debt free and I sure don't want to screw it up trying to expand my farming operation.

 

[Bestoutwest]

I'm not going to read all 8 pages. Here's what this thread is about: Branded is rich. Everyone else is stupid. Poor people suck. They're losers. Rich people are better, even if they were born into it. Grit still hates liberals.

You're all welcome, I saved you some time.

What I get from it is ,Branded is not rich, but wants too be...and the lib's ain't gave Grit a reason too even start liking em.. :lol2:

Must be someone's rich if he's throwing out 4 year old equipment.

 

[ALACOWMAN]

My eguipment was built before he was born...id be like the Amish to him..
........except for the 100 dollars a bale part......... not giving a hundred dollars for a bale of hay.. :cowboy:

 

[True Grit Farms]

I just can't see taking on any debt just to be able to farm. I can see acquiring debt for some commercial rental property but to farm makes no sense at all to me.

Are you saying it's not smart to borrow any money at all for farming or ranching? No money for land, equipment, cattle....nothing? I borrow as little as possible but definitely don't have 200k for a cattle deal or 500-800k for a land deal laying around.

Ask any truly successful businessman or businesswoman and they will tell you that leverage is a tool to use wisely, and if done so will increase your returns.

Leverage has demolished a lot of people and businesses, just look at what happened to Windstream lately. But if you use it wisely, you can exploit it, not the other way around.

To just make a blanket statement that all borrowing is bad is to not truly understand the power of leverage when it works in your favor.

If a bank will lend you money at 6% and you make a 15% return with that money, you win! You allocated that capital better than the lending institution could.

I'm sure there are many on here that if the funds were available that they could make that money work for them.

The real estate business is built on leverage, take it away and hardly anything would move.

We had a couple of chances to make things right in this country and the government bailed the crooks out. I paid 15% interest on my first house and 20% down. I'm hoping for interest rates to get back to 15%, it would definitely separate the men from the boys.

 

[jehosofat]

Are you saying it's not smart to borrow any money at all for farming or ranching? No money for land, equipment, cattle....nothing? I borrow as little as possible but definitely don't have 200k for a cattle deal or 500-800k for a land deal laying around.

Ask any truly successful businessman or businesswoman and they will tell you that leverage is a tool to use wisely, and if done so will increase your returns.

Leverage has demolished a lot of people and businesses, just look at what happened to Windstream lately. But if you use it wisely, you can exploit it, not the other way around.

To just make a blanket statement that all borrowing is bad is to not truly understand the power of leverage when it works in your favor.

If a bank will lend you money at 6% and you make a 15% return with that money, you win! You allocated that capital better than the lending institution could.

I'm sure there are many on here that if the funds were available that they could make that money work for them.

The real estate business is built on leverage, take it away and hardly anything would move.

We had a couple of chances to make things right in this country and the government bailed the crooks out. I paid 15% interest on my first house and 20% down. I'm hoping for interest rates to get back to 15%, it would definitely separate the men from the boys.

Yep, I'd sell all my paid of stuff and finance it to em.

 

[ALACOWMAN]

Are you saying it's not smart to borrow any money at all for farming or ranching? No money for land, equipment, cattle....nothing? I borrow as little as possible but definitely don't have 200k for a cattle deal or 500-800k for a land deal laying around.

Ask any truly successful businessman or businesswoman and they will tell you that leverage is a tool to use wisely, and if done so will increase your returns.

Leverage has demolished a lot of people and businesses, just look at what happened to Windstream lately. But if you use it wisely, you can exploit it, not the other way around.

To just make a blanket statement that all borrowing is bad is to not truly understand the power of leverage when it works in your favor.

If a bank will lend you money at 6% and you make a 15% return with that money, you win! You allocated that capital better than the lending institution could.

I'm sure there are many on here that if the funds were available that they could make that money work for them.

The real estate business is built on leverage, take it away and hardly anything would move.

We had a couple of chances to make things right in this country and the government bailed the crooks out. I paid 15% interest on my first house and 20% down. I'm hoping for interest rates to get back to 15%, it would definitely separate the men from the boys.

that would put me around puberty then...

 

[Caustic Burno]

If your wishing for 15% interest rates again you need an aspirin. Or you didn't live in the real world but a bubble.
The unemployment rates of the late 70's made 2008 look like a picnic.
You actually had a majority of the country that wanted to work then.