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Operations - management

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  • Operations - management

    In Dairy discussion, talk of record keeping has brought into the conversation of farm size and profit.
    Really is having twice as many acre/cows/sows and enough machinery all under debt service worth the same profit. It happens everywhere in farm country young guys get big fast find they can't quite make it at that size need to get bigger faster and run over everyone else. In the end do they make any more profit than the guy who decided to manage the little bit that he had keeping debt load low and being able to do most of work himself.
    Don't get tripped by what's behind you

  • #2
    yupe, and ever so often, those getting bigger faster including shiny equipment hit a snag, and ooopps, bank doesn't want the keys, but FDIC says someone needs more collateral, so loan
    the bigger faster enough to rent some more at a NOT for profit number and everything is roses, until the repair bill comes in, or the loan agent has to do the "dirty work" and the adjustment
    time comes around.

    moral, you cannot borrow yourself rich.

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    • #3
      I bet it is easier to borrow yourself rich than you think. I have seen some start with 0. Talk a good game with the banker and get big. All borrowed money. Banker sells them out. Bank is thrilled they end up with .50 on the dollar. They guy then starts over on a small scale, all paid for. I wonder how he got the cash to pay for the small scale?

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      • #4
        You can borrow yourself rich but it takes some luck or skill.

        In the capital intensive business of ag production, those paying masses of interest have to be much more skilled (or lucky or both skilled and lucky) than the guy with lots of paid for assets.
        “Democracy is the worst form of government, -------------------------------except for all the others.”

        ― Winston S. Churchill

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        • #5
          does skilled include the wavy bottom line and lucky no hic-ups? I admit to back in the day, the IF word was sacred and the devil's advocate in decisions with big balls...

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          • #6
            fkn k

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            • #7
              Don't get tripped by what's behind you

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              • #8
                Invalid Redirect URL (http://discussions.agweb.com/).

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                • #9
                  Don't get tripped by what's behind you

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