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| My Dad was that way he farmed thru the 80's and saw a lot of guys go broke or get downsized pretty shure that is why he is so conserative, but on the other hand he never expanded went he could have very easily because he didn't want to borrow money either, I have always bought what I wanted as long as it pencils out, clashed with Dad on that topic for many years as he was always afraid I would go broke, obviously I didn't and now that he is retired he just runs my stuff and really likes it, as far as never having an operating loan some people can do it but sometimes having an operating line is more about cash flow than actually needing money, take for instance this fall prepaid a bunch of seed corn and beans, paid for in october there was a 9% discount over paying next spring, I had the grain in the bins (sold for a January delivery) cause that made the most dollars at the time, so would I have been better off selling the grain for less just so I could prepay seed or give up the early pay discount waiting to get the grain check?? No anyway you calculate it out I was better off borrowing money (short term) to sell grain farther out (huge basis improvment) and prepay seed last fall.
Edited by Dennis SEND 11/14/2012 08:39
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cash ?
