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paying for land

  • 05-07-2010 9:38pm
    #1
    dar31
    Registered Users, Registered Users 2 Posts: 1,704 ✭✭✭


    how many years should it take for 1 acre of land to pay for its self from farming.
    or in other words
    how many year would you farm a piece of land to make it pay for its self
    doing some figures here. and just wondering:confused:


Comments

  • #2
    haybob
    Registered Users, Registered Users 2 Posts: 347 ✭✭haybob


    sure it depends on the price you pay
    dar31 wrote: »
    how many years should it take for 1 acre of land to pay for its self from farming.
    or in other words
    how many year would you farm a piece of land to make it pay for its self
    doing some figures here. and just wondering:confused:


  • #3
    maidhc
    Registered Users, Registered Users 2 Posts: 7,722 ✭✭✭maidhc


    IIRC it was well over 40 years in the good times, but less than 8 in the 1970's. Teagasc did some research on it last year.

    Most farms in Ireland however make a loss if you exclude the SFP. As such I think it is fair to say you will never be able to repay the capital outlay!


  • #4
    Tora Bora
    Closed Accounts Posts: 1,258 ✭✭✭Tora Bora


    maidhc wrote: »
    IIRC it was well over 40 years in the good times, but less than 8 in the 1970's. Teagasc did some research on it last year.

    Most farms in Ireland however make a loss if you exclude the SFP. As such I think it is fair to say you will never be able to repay the capital outlay!

    Then theres the "better farmer", in the Journal, who can make a net margin of a couple of hundred euros an acre, and religiously invest 100% of the SFP in another profitable investment:rolleyes::rolleyes:


  • #5
    zetorman
    Registered Users, Registered Users 2 Posts: 157 ✭✭zetorman


    Can someone explain the logic in prices for pure non development ag land ?? Bit beside me on market at present and price is now up as high as €7000 per acre.....I just cannot understand it. ????????????
    If you are "lucky" enough to generate a profit of €200 an acre each year it will still take 35 years to pay back the principal not even to mention the interest payments.
    Only one it makes any sense for is someone with "old snow" to invest and even at that it makes no economic sense.


  • #6
    ellewood
    Registered Users, Registered Users 2 Posts: 950 ✭✭✭ellewood


    i agree 35 acres of poor land - youd be luckeyto get 3-4 mths grazing from it on a good dry year id say last few years verylittle was got from it - it is renowned fattening land but at 10k/acre twould want to fecking gold plate any cattle left on it the better farms aim for a gross of 1000/hec but net maybe 600 this leaves 240/year to pay youreself and pay repayments i cant see any logic in it maybe im stupid or someting because lads seem v keen on it and looks like it will hit 10k/acre cause even a "better" farm would take near 40 years to pay 350k off with 8500 net/ year even if they paid all profit to bank with no wages for themselves??


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