22 acres - what to do?

|8-)

Hello,
I would really appreciate any advice. Yesterday I got a herd number, I have absolutely no farming experience but need to activate herd number soon. I know I won't make money really with small amount of land but wouldn't mind being a poor farmer! I'm wondering what would be the best thing for me to do?

leg wax

rent it to a local farmer for 1800e cash a year and walk away.

pathway33

Ease into it. Have you any machinery? Not worth buying anything I'd say for 22 acres although a small tractor/quad may be useful in the winter for lifting bales if you can only get round bales. Better off getting contractors to spread any fertiliser etc. Have you much capital to invest in it? If not buy a few calfs and leave them on grass till October. You can sell them then or keep them over the winter if you have silage/hay in store.


Buy the farmers Journal every thursday. What sort of land is it? Good grazing or rough? Make sure the fields are well fenced so that stock aren't causing you problems by escaping. If you are getting into sheep you need even better fencing but cattle are better for starting off as sheep require more attention and are more prone to lameness etc.


Under the Nitrates Directive which tries to stop pollution from dung going into the water you can stock at 170 N kg/ha. A dairy cow is counted as 85 N kg/ha, a suckler 65 and cattle under 1 year old are 26 I think. So you have nearly 9 hectares so you could keep maybe 50 calves until they are 1 year old. Teagasc will give you clear advice on this. You could also buy yearlings now and keep less, maybe 30. I suppose you could keep maybe 80 sheep


Are you going to take silage off the fields? Will it be round bale? If you are keeping stock over the winter you also need to have storage for dung for between 16 and 22 weeks I think depending on which county you are in. Are you going into REPS? Other posts here will show you that you may have missed the boat on that one for the time being at least.


What about a single farm payment? Are you entitled to anything there? Is this a part-time venture? It may be worth your while even if you are working to enquire from social welfare about 'Farm Assist'. That's all a bit jumbled above but I just threw down some stuff for you to mull over. I'd say there's people here who can give better advice than me but that's a start.

Finally, when you are happy with the loss you have made you can rent another 20 acres next year . Watch Corrigans Farm on tuesday evenings on RTE. Might get some tips


Best of luck.

|8-)

Thanks guys,

Had land rented to local farmer but had to opt out of that.

Pathway33 - loads of info there to think about. land not the best about half of it boggy. Am in Offaly. Have tractor - 50 years old apx but still goes! I'm not working at the moment but husband is and is taxed at 42%so if by some stroke of fate we did make a profit from farm I presume that too would be taxed at that rate?

Will probably get calves for summer time, have electric fence so that should keep them in? Have lots to learn.......

pathway33

|8-) wrote: »

Thanks guys,

Had land rented to local farmer but had to opt out of that.

Pathway33 - loads of info there to think about. land not the best about half of it boggy. Am in Offaly. Have tractor - 50 years old apx but still goes! I'm not working at the moment but husband is and is taxed at 42%so if by some stroke of fate we did make a profit from farm I presume that too would be taxed at that rate?

Will probably get calves for summer time, have electric fence so that should keep them in? Have lots to learn.......

i'm no expert but isn't boggy land perfect for growing vegetables? people would be very glad of food in recessionary times. check out www.allotments.ie for tips

tax wise your best bet is to 'break even' so you reinvest profits in the farm each year for the rainy day

ki

I started on 10 acres 4 years ago with 25 sheep,
I've now got 40 acres(50 sheep and 20 steers).

So my advice would be get in to teagasc, join reps and slowly build up. Like me unless you find gold digging a gate post, It won't make you a millionare but it will get you out and about.

|8-)

Thanks,

Appreciate replies.

Think it'll be more of a hobby than a money maker.
Have contacted REPS planner so just getting the ball rolling there.

Wondering here if we bought new tractor or any thing for farming purposes, can my husband claim tax back in any shape or form? also, is it possible to do your own tax returns etc.?

pathway33

|8-) wrote: »

is it possible to do your own tax returns etc.?

yes. I believe it may be the same FORM 11 as for self-employed people but best to confirm with revenue.

pathway33

|8-) wrote: »

Wondering here if we bought new tractor or any thing for farming purposes, can my husband claim tax back in any shape or form?

if your husband is employed as a paye worker I would say not.

If he is self-employed I would say probably not. I'm not sure if you can write off an expense in one trade against a non-related trade. I wouldn't think so but maybe I'm wrong

Bitten & Hisses

pathway33 wrote: »

I'm not sure if you can write off an expense in one trade against a non-related trade. I wouldn't think so but maybe I'm wrong

Check with your accountant. There is a scheme whereby (assuming your farming enterprise is loss-making) you can offset the loss against your PAYE liability, which means you'll get a tax refund. However, this can only be used for the first few years of operation. Any accountant who deals with farm accounts will be familiar with this.

Driseog

I'd say put forest on it if its suitable and maybe keep a bit for vegetables for yourself. I don't want to be negative but the EU will end up opening its food markets within the next 20 years and only super-farms will be able to compete with the cheap stuff coming from south america and other places.
You won't make a greatt living from forestry but if ya get the right manager in you'll be able to get a consistent income. Sawlog prices are on the floor now but timber products will become more valuable in the future with the whole 'green' thing being promoted.

FarmerBarleymow

Driseog wrote: »

I'd say put forest on it if its suitable and maybe keep a bit for vegetables for yourself. I don't want to be negative but the EU will end up opening its food markets within the next 20 years and only super-farms will be able to compete with the cheap stuff coming from south america and other places.
You won't make a greatt living from forestry but if ya get the right manager in you'll be able to get a consistent income. Sawlog prices are on the floor now but timber products will become more valuable in the future with the whole 'green' thing being promoted.

That's pretty much what i was going to say

Turbury

|8-) wrote: »

Wondering here if we bought new tractor or any thing for farming purposes, can my husband claim tax back in any shape or form? also, is it possible to do your own tax returns etc.?

Yes, on both counts -talk to a good accountant with farm accounts experience for advise.

|8-)

Cheers guys,

I don't have an accountant - really starting from scratch here! I know I'd get good advice from one but with farm being so small it probably wouldn't be worth the fees. Trying to get all the info i can myself and that's not easy - it's all over the place.

Thinking of forrestry for some of the land, maybe half and having done a little research found out about FEPS. I reckon trees, being a renewable energy source, are a good route to go. Also through my research found that FEPS payments (and REPS payments) have been cut somewhat - very short sighted decision I think. The government should be encouraging use of all natural resources rather than discouraging it and we know we can grow trees, in Ireland. I wonder how many little pockets of land, like mine, are just left as is because there is no incentive to do any thing with them.....

I could go on but I won't.

barbersfort

FEPS is still a good bet as the returns are good compared to other agric schemes (esp. for the first 5 years), its tax free and very good for wildlife/environment