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Real-Life Activities

Real-Life Decision Making -- Solution

You wait until you're sure you can afford the additional debt.

This is the real-life decision that small farm owner Craig Rogers would make. He warns that small farms often fail because they take on too much debt.

"Unfortunately, there's a lot of risk in farming, which means that you can't be taking the risk," says Rogers. "You have to manage the risks that come to you. So taking out big loans is always problematic.

"You have to be particularly cautious on your debts, on the loans, and try to do as much on a cash basis as you can," Rogers adds. "It might be a slower growth, but it's probably a more sustainable growth."