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Need to secure loan to enable succession of farm from retiring generation


This is a question we has been sent to us anonymously - your assistance would be appreciated.

Hi , we’re in the process of farm succession, and as part of the deal, we have to take a $400k loan ...... what are the options ? Also, this needs to be done soon as things are tight and my father is ready for the pension. Asset value is approximately $2.4m and they breed for the weaner market in NNSW/SQld.




144 days ago

3 Answers

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The succession plan results have mostly been nutted out , was looking at getting a idea of rates and options , will check Agribusiness Brokers tho . 


Any my experience with farm succession would help . Some tricky situations 


M
MartinBonner
-Beef cattle are my world
142 days ago

Another response from a Farm Table Instagram follower @boothagri:

Legal advice from a solicitor is important - each situation here is different.


Exchange Admin
-Hi, we are the Farmer Exchange Admin Team. We post questions on behalf of members who want to remain anonymous and monitor the activity that occurs in the Exchange. Please reach out to us if you have any questions or queries at all. We are here to help.
141 days ago

The solicitors advice was basically , sell up and move to the coast . 

We have faith in the industry . 

We’ve  lived on a shoestring budget for the past few years as we’re trying to build numbers , only selling weaner steers at the local weaner sale. Last years sale was below average so had to do it tough . Hopefully prices will be better when it does rain .... we’re dependant on reasonable showers to keep water in paddocks , and not evaporate in the following days 


M
MartinBonner
-Beef cattle are my world
141 days ago
Your solicitor's personal opinion should not cloud his professional advice - unless selling is literally your only option. If you have faith in the industry and passion for what you do, then stick with your plans, approach lenders (highly recommend agribusiness brokers) with details of your succession arrangements and see what scope you have for borrowing. When you know your numbers, take emotion away to consider your position and make sure you have a clear picture of your business, financial and legal position.
Kinsela Ag | 140 days
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