Tuesday, January 26, 2010

'Rich Prick Farmers'

A familiar vocal refrain we hear from the opposition wanting to implement land taxes on top of current exorbitant local body taxes. Then on top of that, CGT for sales.

Not so rich it would seem. The local accountants have 10 years of benchmarking data to prove otherwise in tonight's Bush Telegraph (not online). It shows that the the last decade gave an average return of under 5% based on capital invested in land, plant and stock. You could get better returns putting your money in the bank and skipping the 0430 starts along with the 12 hour days.

The amount of capital tied up in farms in this benchmarked data has gone from $1M to $4.3M. An expensive option to be your own boss, the work is physically hard and you are always fighting the weather. Tons of readies via super-mortgages required to get into your chosen lifestyle, for absolutely piss poor returns.

And all the time on the outside, local councils regularly taking $10,000 a year or more in rates delivering zero services to the rural sector but wanting ever more. Outfits like the local Horizons Regional Council thieves wanting their extra cut with their 'One Plan', nothing but a 'consent to farm' about to hit farmers in the region but that's another story.

Along with all sorts of other vocal collectivists/progressives wanting more land taxes off the backbone of the economy for no input or risk, all the while screaming 'rich prick farmers'.

1 comment:

KG said...

It's time he leeches--especially the local and regional council leeches--got a swift kick up the arse and told to get a productive job.