Farm debt and borrowing

kevthegaff

The main reason i paid off loans quickly is im single, low living expenses. If i have a family in years to come i dont want to be crippled with debt. Its a cache 22, i probably neglected certain areas of the business to pay back debt quickly. A lad that does contracting for me was telling me in the beginning to get out additional loans to finance a total upgrade of the roadways buildings etc, this guy is gone bankrupt since. Its what suits the system, i have been lucky milking cows with no superlevy the last 5 yrs(prob not this yr), reps payments and an ok sfp.

keep going

bob charles wrote: »

I never like repaying capital at all, hence I like stocking loans and credit lines, but the major problem I have with these is the insistence with banks having to redo them every 12 months:mad:. Revolving stocking loans also dont suit ag businesses. Actually the Irish bank offer no product that is suitable for someone that wants continuous credit. There other option that they will fire at customers is a medium term loan where you start repaying capital from day 1, again not suitable for livestock. I have no problem paying interest aslong as there is enough credit available which there should be considering the security that farmers can bring to a banks balance sheet.

Along with low grain prices, low interest rates arnt good for full time farmers who want to get on with the job

Just out curiousity what rate would you pay on stock loans?.anytime I enquired it seemed to be daftstuff around 8 or 9 percent

bob charles

keep going wrote: »

Just out curiousity what rate would you pay on stock loans?.anytime I enquired it seemed to be daftstuff around 8 or 9 percent

few precent lower than that, would have to double check for certain

Toplink

kevthegaff wrote: »

The main reason i paid off loans quickly is im single, low living expenses. If i have a family in years to come i dont want to be crippled with debt.

Your dead right lad. Having a big chunk of your debt cleared by the time you get around to having a family is a great move.

whelan1

Toplink wrote: »

Your dead right lad. Having a big chunk of your debt cleared by the time you get around to having a family is a great move.

in some ways it would be. But its no harm for smalkies to realise that money doesnt grow on trees either. When we where young money was very scarce and we learnt no to flitter it away. WOuld like to think my kids realise the value of money and to spend it wisely. Theres alot of kids out there get everything handed to them

hugo29

whelan1 wrote: »

in some ways it would be. But its no harm for smalkies to realise that money doesnt grow on trees either. When we where young money was very scarce and we learnt no to flitter it away. WOuld like to think my kids realise the value of money and to spend it wisely. Theres alot of kids out there get everything handed to them

thats a very good point whelan1 and kids nowadays have no value on money, but thats a lot to do with upbringing and not how much money family has

Timmaay

Whatever about that Whelan ha, I don't think its a case of the parent actually having money that is the problem, I think it would be more the way you spend it on the kids, I know parents who don't have much money, and still hand kids almost everything on a plate to them. Hell I suppose when I think back as well, I did largely have everything handed to me on a plate, but thankfully I still very much so know the value of money, and was always driven to succeed in College etc!

But anyways, back on topic about paying off loans quickly ha, I'd be of the opinion that I'd like to blow money now, while I'm still able to (being shy a family :P), the farm isn't setup right yet, but I'd rather do things like to take more holidays and travel and see the world more over the next few years, rather than being fairly skint all the time pushing the boat too much with the farm.

mf240

Timmaay wrote: »

I did largely have everything handed to me on a plate, but thankfully I still very much so know the value of money,

, I'd be of the opinion that I'd like to blow money now,

:rolleyes::rolleyes:

Timmaay

mf240 wrote: »

:rolleyes::rolleyes:

Yeh, ironic, esp when my idea of blowing money would be spending 10k on a weekend in Vegas on gambling and hookers!

bob charles

Timmaay wrote: »

Yeh, ironic, esp when my idea of blowing money would be spending 10k on a weekend in Vegas on gambling and hookers!

you wouldnt get very far on 10K;)

mf240

Timmaay wrote: »

Yeh, ironic, esp when my idea of blowing money would be spending 10k on a weekend in Vegas on gambling and hookers!

Ya Know what fcuk it your only young once. Maybe your right.

Enjoy it while your able.

hugo29

bob charles wrote: »

you wouldnt get very far on 10K;)

jayus bob she must have been some bird if she cost you more than 10k

bob charles

hugo29 wrote: »

jayus bob she must have been some bird if she cost you more than 10k

plural

hugo29

bob charles wrote: »

plural

why didnt ya get the lad who was helping you to split the costs, you hardly managed more than one:P

whelan1

Timmaay wrote: »

Yeh, ironic, esp when my idea of blowing money would be spending 10k on a weekend in Vegas on gambling and hookers!

:eek::eek::eek: i'm here with my mammy hat on going, do you know how much i could do with 10k

hugo29

whelan1 wrote: »

:eek::eek::eek: i'm here with my mammy hat on going, do you know how much i could do with 10k

you could buy some clothes, seeing as you are always in pyjamas:D

Bactidiaryl

whelan1 wrote: »

:eek::eek::eek: i'm here with my mammy hat on going, do you know how much i could do with 10k

Shure them hookers will make great use of 10 k. They might extend their slutted unit.

Farmer Pudsey

delaval wrote: »

Not saying anything wrong but what ever way you slice it's inroduced capital that could be making a return elsewhere.

There is a paronia about interest. It's only the fee charged for the use of some elses money. I will never compromise my cashflow by tryin to repay too quickly. I will also never miss a deadline. Some with compromised cash flow miss payments when the problem was caused by trying to repay too quick or doing capital projects from cashflow

I borrowed for land at a seriously good rate I be slow paying back early. I put up shed and bought tractor and machinery from cashflow.A few years back was under pressure and was sorry I borrowed so much now if they would give me more money at same rate I would Take it.