Our farms are not isolated from the economic environment.
What I foresee coming next is not that good!
And it is coming from China!
A similar shock as Lehman Brothers 2008 is coming from China.
A real estate company called Evergrande is on the edge of bankruptcy.
Ok!
You will ask me: What does this have to do with my farm and me?
Let me explain to you!
Evergrande is a big company!
The problem is that this company is massive with a debt of over $300 B (Yes! B from billion).
And many economists speak about a problem for China. In my opinion, it will affect every single person who works on this planet.
Because our economies are interconnected through globalization.
For my MBA program, I analyzed what is happening to my farming business if the Chinese economy contracts with 5%.
The conclusion: when China’s economy sneezes, the entire world has a bad cold.
I will explain it to you as simply as I can:
Evergrande borrowed money from multiple banks in China. These banks will have big problems if they don’t get back these $300 B. These banks are connected with all other companies in China.
These companies are from many economic sectors, like electronic manufacturing, industrial goods, auto industry, chips, chemicals, pharmacy, clothing, and you can add more.
Actually, many of the things we use in everyday life.
These companies will not have access to their money in the bank accounts and they will not be able to borrow any money. No access to money means that they are not able to produce anything.
For my farm and me, the 2008 economic crisis was brutal, and it went better only in late 2010.
What can you do for your farm
I invite you to think:
What did you learn from the 2008 economic crisis?
What would you do differently?
Can you prepare yourself and your farming business in some way?
These are the questions I have prepared for you.
What are your thoughts about this?
What would you do?
Here you find some tips about how to buy the right farming equipment that brings you profit. Because we are in this business to make a profit, to prosper, to have an income for our families and us.