Reply
Honored Advisor
Posts: 11,091
Registered: ‎05-13-2010

Re: Debt free farming operations

I watched my father farm debt free all my life, until he retired.  He did so largely by farrowing enough sows to keep hogs going to market almost every week of the year.  That also allowed him to add value to cheap corn, with supplement his only real purchased input.   

 

That largely explains why Mike and I ended up in the hog business to start with, and are still up in it at this late stage in the game.  We know that direct deposit from our contract is going to be there on time, every time.  It is steady money. 

 

The arrival at a debtfree life is so liberating.  I used to worry about money, even though we really didn't have to worry, just because we owed some to someone.  Now, being able to say it is all free and clear lets me sleep more easily. 

 

I think cheap interest is lulling some people into thinking that debt is not all bad...it isn't, but none is better, even at 3% interest.  Some people see the low rates and get sloppy with noticing the principle.  It all comes due....