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Why wean calves?
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<blockquote data-quote="Lucky" data-source="post: 1712092" data-attributes="member: 32659"><p>I think it depends on the relationship with your banker and how much you owe him. </p><p></p><p>My banker offered to set me up with a pretty big chunk last year and told me to use the money however I wanted and all I owed every year was the interest. I hope I would never have to do something like that but if you did have a $23,000 payment due like in my example above and the market was down it could save you. You could just pay the $4,000 interest and keep the calves for a few months until the market went up. At that time you sell them and make a loan reduction payment or just keep the money and use it how you want. They resign the loan every year so it's not a term note. Guys joke about it being an evergreen because they pay the interest every year and use the banks money to roll on and hopefully make more than the interest cost them. Not sure if any of that makes sense.</p></blockquote><p></p>
[QUOTE="Lucky, post: 1712092, member: 32659"] I think it depends on the relationship with your banker and how much you owe him. My banker offered to set me up with a pretty big chunk last year and told me to use the money however I wanted and all I owed every year was the interest. I hope I would never have to do something like that but if you did have a $23,000 payment due like in my example above and the market was down it could save you. You could just pay the $4,000 interest and keep the calves for a few months until the market went up. At that time you sell them and make a loan reduction payment or just keep the money and use it how you want. They resign the loan every year so it’s not a term note. Guys joke about it being an evergreen because they pay the interest every year and use the banks money to roll on and hopefully make more than the interest cost them. Not sure if any of that makes sense. [/QUOTE]
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