I have been self employed since the ripe old age of 21. Just on 50 years. The first 20 years in the motor industry in Armidale then as a farmer.
I can recall 4 recessions and some pretty tough times. For some reason it seems harder today than I recall.
Commodity prices are good but the season is border line drought and the input cost are crazy. Most farmers input is a very high % of their income.
In fact, often it is 95 cents of every dollar you make except in a drought then it is over a dollar in costs.
I started with no capital and have always highly geared my business. Paying interest to banks has been normal. That is a great way to accumulate assets but when droughts occur it makes it hard.
I can recall paying 22% interest rates during Paul Keating recession we had to have. So the 6% today should be easy. It’s not.
With fertiliser near $1,000 a ton, plus a rapid increase in insurance cost, it is certainly challenging. The cost of machinery is through the roof and parts worse.
My daughter said to me recently you have enough equity sell up and move down the coast. I reckon after a week of organising my wife’s cutlery in the drawer she would pack up and leave me.
Unfortunately with my hyperactivity I will keep on farming so I had better shut up whinging and enjoy it.
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