Originally Posted by
fungus pudding
If a farmer, or any other business operator can see a genuine efficiency increase, or profit increase by spending they are generally in boots and all. Yes, there will be exceptions. But you seem to suggest that farmers deliberately have higher overheads to avoid spending capital. Sensible capital expenditure adds to plant value, so can be depreciated and largely recovered on sale. Worn out, obsolete plant will mean the sale price will suffer. There may be a small degree of not bothering to upgrade due to an impending sale, but that's a business decision applicable to everything in life. Very few home owners would chuck in a new kitchen and bathroom prior to sale, unless it was likely to add more to the sale price than a dollar for every dollar spent. Your challenge to prove it is naive. I have no ability to mind-read every farmer in NZ, to assess his thinking, and neither have you.