Advice for a friend - 20 acre purchase

lakill Farm

Advice for a friend - 20 acre purchase
i have a frien who is 40 y/o and a teacher from a farming background

He is lokig at 20 acres of ok-to good land ad going to buy 50 ewes.

He is going to borrow for the landand before he hits the bank he wants to know what info he can give the manager

This lad knows one end of a ewe from the other and i told him a quick discription of vat reclaim for crush and fencing. and also asoes .

I suggested about the "disadvantaged area" and he is checking same.

He has a few quid and sees it as a pension, fun and investment.

Is there anything else apart from Aseos & Disadvantaged area available?
(the land is on the westmeath/Longford border) Not bog land either

How many years could be borrow the money over and what up front amount would he need to have for the purchase

What would be need to pay for the land. 5 - 7.5 k?

any other points.

I told him about stamp duty and he is on the ball with legal fees

thank you. I will print this off for him when i get a few replies.

reilig

To be honest, and please don't take this as being critical, but if he doesn't have a farm business plan drawn up for the bank manager, he hasn't a hope of borrowing €100k to €125k for 20 acres of land. His business will need to go into great detail about his farming experience, how the entreprise will make enough money to make the repayments. Banks have gone very strict on who they will give out money to and how much they will give. People who are already running profitable farms are struggleing to get money out of banks for expansion. A new start up farm might be much harder!!

lakill Farm wrote: »

Advice for a friend - 20 acre purchase
i have a frien who is 40 y/o and a teacher from a farming background

He is lokig at 20 acres of ok-to good land ad going to buy 50 ewes.

He is going to borrow for the landand before he hits the bank he wants to know what info he can give the manager

This lad knows one end of a ewe from the other and i told him a quick discription of vat reclaim for crush and fencing. and also asoes .

I suggested about the "disadvantaged area" and he is checking same.

He has a few quid and sees it as a pension, fun and investment.

Is there anything else apart from Aseos & Disadvantaged area available?
(the land is on the westmeath/Longford border) Not bog land either

How many years could be borrow the money over and what up front amount would he need to have for the purchase

What would be need to pay for the land. 5 - 7.5 k?

any other points.

I told him about stamp duty and he is on the ball with legal fees

thank you. I will print this off for him when i get a few replies.

lakill Farm

Thanks Reilig.

Apologises for typos (the keyboard is acting up)

He asked me these questions so we can put a plan together for the bank. He has other land (10 acres) mortgage free and could use as collateral
And he is on god money as secondary shol teacher

rancher

Good sheep farmers with good land are only achieving 40 to 50 euro net profit per ewe,,,, can't see how you can come up with any plan that would service the repayments