Friday, May 1, 2015

I CONTINUE TO BE AMUSED

by the financial illiteracy continually demonstrated by the Labour Party and it's spokesthingys.   Case in point the latest sprukings by their financial wizzo, Grant Roberston, rabbiting on about the economic black hole caused by the reduction in the dairy payout.

For ch*****kes Grant, any farmer worth his/her salt knows that the very nature of the business is cyclical.     There will be good years and there will be bad years.   There will be external factors (demand and supply) and internal factors (weather/cost of borrowings).  The trick is to leverage your borrowings based on that certain knowledge.    Any dairy farmer who leveraged themselves based on a continuing payout of $8.75 was not a very good businessman.

The reduction in the dairy payout is balanced to a degree by the very high price being achieved by beef farmers. After years of just breaking even my s-i-l is enjoying a record season from their Wairarapa operation.

But then, what has the dark side of politics ever known about farming.


2 comments:

Adolf Fiinkensein said...

Absolutely nothing!

Anonymous said...

Lol Adolf, that's a first!

Marc