Quote Originally Posted by bigbruce View Post
Farmers are farming capitol gain, requiring Fonterra to provide a high payout to finance the high land values.Fonterra good at removing water from milk, supplying powder which the world has ample.
Not forgetting the tax free cap gains when the cockies sell, imo the dairy industry has kind of shot its in the foot what with the higher and higher ( valuation ) that their farm values up at, sometimes the only purchaser in the guy next door who can make the numbers work by averaging the "numbers " over the combined acreage and this is what is scaring the banks atm.
Speaking of the banks, as most of them are Aust owned they do not want a repeat here of what is happening over there.