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 Debt-ridden farmers forced to sell up 

Debt-ridden farmers forced to sell up

17 Nov, 2008 04:10 PM
Forced sales are peppering the rural property market around Australia, as farm operators feel the heat from anxious bankers.

The Australian Financial Review reports Colliers International director of agribusiness Phil Schell saying agents expect more such sales to come.

Mr Schell is marketing the 890-hectare Kingsford Olives property in the Southern Mallee, South Australia, which has gone into receivership with McGrathNichol, even though it has 40,000 olive trees and 700 megalitres of water.

"Banks are saying to farmers, 'You guys have to reduce your debt,'" he said.

Earlier this year insolvency firm PPB estimated there was $1.5 billion worth of farms under various degrees of financial stress because of the drought, overplanting and debt.

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Date: Newest first | Oldest first
There is much worse to come as the full effect of the deregulated wheat market is felt. There will be a disasterous flow on as wheat growers move into livestock pursuits. A rural collapse is immenent unless order is restored in wheat marketing. This collapse will spread to the cities in due course.
Posted by Realist, 18/11/2008 3:04:11 AM
The banks have been quietly pushing farmers over the edge for some time during this huge drought. It is time their actions were highlighted in the media each week. Even viable farmers are stressed by the banks' actions. The banks should be ashamed of their "bullish" actions. They have no concern for the lives of the famers, their health or well being. The only thing they worry about are profits and shareholders. It is time for a weekly release of the forced sales by the banks. They seem above accountability.
Posted by farmers wife, 18/11/2008 3:52:53 AM
This is a follow on from my comment yesterday that Australian agriculture is in a grave situation. The only hope which people put forward is you can make money on the improvement of land prices. This is precisely why we are in this financial situation where there is little reward for hard work in the beef industry. It has little to do with the sub prime global financial crisis so get real Mr Rudd of a so-called farming background and reduce agricultural interest rates to the pro rata situation to profit made from beef sales from Small Farmers.
Posted by Cox and Noble, 18/11/2008 4:49:02 AM
It's hard, isn't it! When you're struggling to make your dream come true and everything you do doesn't quite get there so you think if I borrowed a little it will make things easier and I can get ahead. The banks, in good times are only too willing to lend and even encourage borrowing so you buy something a little bigger or better and you think you've turned the corner but then the crunch comes. You've struggled, your family has suffered and your passion has gone, it's not as though you had big dreams just dreams. So what do you do? What you don't do is give up because there's always something can be done, there are people out here who would jump at the chance to help. Sometimes getting off the farm might just be the best thing that ever happened or perhaps staying there and looking at things from a different angle might be the solution. The point is that no one is a failure, might have made some poor choices but even then you've learned something and that knowledge is valuable. Bulls#/*t you say, I didn't succeed, that's failure, but no. Although you may not have realised your initial dream it doesn't mean you give up on dreaming but now you have the knowledge to use to help others not fall into the same traps and doing so realise other passions.
Posted by Realist, 18/11/2008 5:08:53 AM
Hard for those who lose their jobs in the city as well, but they just have to get on with life. Farmers are the perennial whingers...if you choose to clear fell your land of trees, and farm in an area where there is no rain..it's your own fault. Do farmers ever think that perhaps their land management or lack of good management is why there are droughts? The rest of us don't get the continual handouts from taxpayers like farmers do. I am sick of hearing about how hard life is....especially when you can't buy this year's model BMW! A while ago I read about a campaign to raise funds for hard done by farmers and the money was to be given to farming families so they can have a holiday. I haven't been able to afford a holiday in 14 years nor do my children go to a private school unlike most farmers. Do I get a handout - not likely. Stop moaning and get a life.
Posted by Jeff, 18/11/2008 8:49:19 AM
Are you sure it's the banks forcing sales. In the droughts of the early '80s most of them held on as I remember because it "will rain again" and the cost of money to the banks at the time was double what it was today. Hold on if you can. Better for the banks to write off some interest rather than principal which they will not recover. The world has to eat and they are all getting hungrier. ps your example story is about an olive grove not a farm.
Posted by Will, 18/11/2008 11:38:08 AM
I cannot believe the comments made by Jeff. He is just so out of touch. We are not all rich. We do not all send our children to private schools and we do not all drive BMWs. Maybe Jeff needs a holiday on a real family farm in the drought area. He is so out of touch. You are obvioulsy referring to farms propped by money from investments from other business ventures. Pathetic James. Just the support the average hard working family farmer needs. None. I hope you will enjoy your inferior overseas foods and high prices when the time comes. And it is coming fast.
Posted by farmers wife, 18/11/2008 2:29:34 PM
A word of hope for those contemplating their future outside their "dream". My wife and I chose to leave what was once a life long dream to pursue other things. Originally we moved to be with our children during those important education years. Along the way we found ourselves and today we enjoy several businesses including a first class training business. Guess what: did not do well at school, no university education, 30 years on an isolated property, just passion to learn and be of service. You can do anything if you put your mind to it, including finding a way to be profitable on your dream farm.
Posted by Grahame, 18/11/2008 3:00:57 PM
Jeff I am a farmer and don't ask for or recieve any Government handouts. My world is one of crippling taxation, a $5 cattle tax, a $10 tag tax, a 2% wool tax, $1800 in land protection tax, the list goes on. We pay tax to subsidise your transport, sewerage, first-home buyers and most recently 3b for your inefficient car industry. I am sick of subsidising townies lifestyles. Anyway enjoy your meat and three veg tonight.
Posted by brad, 18/11/2008 3:01:21 PM
Hi, I farm in the UK and we are suffering from low unsustainable prices compared to the cost of inputs. Farmers around the world must present a united front to push up our produce prices! We are just pawns in a global game for big companies which do not worry if we get a sustainable price just as long as they can get their margin. People have to eat as food is their fuel just look at how fuel has gone up, there is no reason why food should not do the same if we stand together.
Posted by paul, 18/11/2008 3:13:51 PM
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