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Price of Meadows?

  • 12-06-2012 8:17am
    #1
    msbrobe
    Registered Users, Registered Users 2 Posts: 53 ✭✭


    Hi, apologies if this has been covered but I'm just wondering if anyone can give me an idea of the price of meadows this year. The land was well manured and has a heavy crop of grass now - ready for cutting weather permitting.
    Thanks


Comments

  • #2
    JohnBoy
    Registered Users, Registered Users 2 Posts: 2,342 ✭✭✭JohnBoy


    Here's my formula:

    Price of fertiliser
    +cost of spreading
    +5-10% markup
    +one third to a half of a year's rental value.


    that's how I'd arrive at an asking price, for good silage ground, but supply and demand is a factor.

    last year we had a deal done by 11am on the morning the local paper came out and a line of other potential customers. This year it took three weeks, and advertising in the paper and donedeal.

    Only for the slow spring we'd have had no buyer I'd say this year as there was loads of silage left in pits after the winter.


  • #3
    Muckit
    Registered Users, Registered Users 2 Posts: 11,174 ✭✭✭✭Muckit


    JohnBoy wrote: »
    Here's my formula:

    Price of fertiliser
    +cost of spreading
    +5-10% markup
    +one third to a half of a year's rental value.

    What did that total per acre John when you stuck the calculator on it? Thanks


  • #4
    Username John
    Closed Accounts Posts: 4,237 ✭✭✭Username John


    Muckit wrote: »
    What did that total per acre John when you stuck the calculator on it? Thanks

    I guess that would depend on the amount of fertiliser applied, plus what land rental in your area is making.

    But at a guess, my calculations would be

    €67.5 - 3 bags / acre @ 450/ton
    + €6 / acre spreading (€40 / ton)
    + €80 (One third - half yearly rent)
    + 5% - 10%
    = €160 - €170 / acre


  • #5
    JohnBoy
    Registered Users, Registered Users 2 Posts: 2,342 ✭✭✭JohnBoy


    4 bags cut sward, inc spreading €102
    Markup €10
    Rental €73

    gives an asking of €175


    Didnt get that, but that's how I figured out what I wanted to get.



    In any business I think you have to know how much things should cost. Whether the market will bear more or less than what things should cost is a different story, but I can never understand people running businesses that work purely based on what the market will or wont pay.


    That rental figure has to cover a portion the other costs such as periodic reseeding, spraying, lime, and of course that gutter that was hit by the first trailer into the yard :)



    actually.... Just cos I'm in excel mode.

    lets say you reseed and lime as per teagasc reccomendations, once every seven years.

    Lime €50 an acre and reseeding €250
    €300 an acre, over seven years €42/acre/annum

    So if you allow 1/3 of those costs to first cut silage it comes to €14 per acre of silage per annum.


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