I’ve just got an anecdote to add.
Mrs Piper’s father, Andy, was a farmer. Farming is one of the most uncertain businesses, since there are so many variables utterly beyond your control.
In the late eighties and on through the nineties, lots of farmers in Saskatchewan were in trouble, with high foreclosure and bankruptcy rates. (One lawyer I know who specialised in acting for farmers against the banks mentioned that having boxes of kleenex in her office had become a necessary business expense, because of the number of clients in tears.)
However, Andy was never in financial trouble. Money might have been tight from time to time, but the farm was never in jeopardy. I asked Mrs Piper how Andy did it, when so many other farmers were on the edge of financial disaster.
Her answer was that Andy always paid cash as much as possible, especially for farm machinery. That usually meant buying second- or third-hand used machinery, rather than new, since the prices for used machinery were much lower. As well, new machinery had the highest depreciation rates, just like cars, so by buying used machinery, Andy reduced his depreciation costs if he wanted to sell a piece of nachinery.
Andy avoided debt at all costs, because servicing the debt during downturns was usually what got most farmers into financial trouble.
I remember taking a drive with Andy in the country around the family farm. As we drove past different plots of land, he would mention who used to own each one. It was depressing to hear all the changes and farmers who had been forced out.
Andy, on the other hand, sold his farm as a going concern to his son, and moved into town. His son is still farming it, just like Andy did.
