Young Start-Up Farmer

Damo810

This whole CAP debacle got me thinking.

I'm 17, from the lovely west coast (well it's been alright this week now ), looking to head to collage next year (Lc this June) doing a course in agriculture. The plan is a career in Ag consultancy/advisory role.

I pretty much grew up on the Uncles farm, there was a summer there i never went home at all, and have a very strong interest in agriculture, and i'd say a good knowledge of it too. The Uncle, by the looks of it doesn't plan on hanging up the boots just yet and even though I'm doing a fair share of the work and having a sizeable input on the decisions, I have feck all of me own and see little to no reward, other than a few bob at the end of the week.

So..

There are a few places up for sale around me, one that caught my eye was a 32 acre farm, with an 8 bay slatted shed (4 solid, 4 slats iirc). I think they're looking for around the 250K mark, so in terms of loans I'd be needing up towards 275-300K.

Now I know I'l have help from the uncle when it comes to machinery and the like. but otherwise i'd be pretty much starting from scratch. What I need to know is:

1)With the way things are, is there any chance at all of getting money from the beloved banks? What sort of interest rates would I be looking at and over what time periods would I be able to get that sort of loan (if possible at all)..

2)What sorts of grants/subsidies would be available to me? Would I qualify for farm assist?With this new cap, would I get an increased SFP?What sort of figures are we talking?

3)With everything included, baseline farm profit, grants received and bills paid, is there enough money there to cover the loan repayments

You'll all probably think i'm mad, and sure maybe I am, but I just said I'd ask your thoughts/hear your stories (im sure a few of you out there have been in a similar position before)...

epfff

yes you are mad
you would not be able to meet repayments unless you have some other income

LivInt20

1. You'd need a sizeable deposit and only be borrowing 60 - 70% of money required.

2. No grants or subsidies available at present. SFP topup of maybe 25% for young trained farmers possible but not going to make much difference as regards loan repayments.

3. Not going to be enough income from farm to pay loan repayments without off farm income.

20silkcut

You would have some job getting a loan off a bank to buy a farm at 17 years of age in your leaving cert year. Some job. Unless your parents or Uncle backed you to the hilt with collateral well in excess of the loan and a hefty deposit.
Better off to get officially trained as a farmer and run someone else's place for a few years play it cute save a few bob maybe buy a bit of land or marry a woman with a bit, keep your uncle onside as he gets older help him more and more eventually when he gets real old move him into your house give him a seat beside the Stanley in your kitchen keep him warm and sitting there all day and don't let any one else court him and make sure he signs the dotted line.
This is a far more plausible outcome than going to a bank in your leaving cert year. If your lucky this should all fall into place by about age 50-60.

studdlymurphy

20silkcut wrote: »

You would have some job getting a loan off a bank to buy a farm at 17 years of age in your leaving cert year. Some job. Unless your parents or Uncle backed you to the hilt with collateral well in excess of the loan and a hefty deposit.
Better off to get officially trained as a farmer and run someone else's place for a few years play it cute save a few bob maybe buy a bit of land or marry a woman with a bit, keep your uncle onside as he gets older help him more and more eventually when he gets real old move him into your house give him a seat beside the Stanley in your kitchen keep him warm and sitting there all day and don't let any one else court him and make sure he signs the dotted line.
This is a far more plausible outcome than going to a bank in your leaving cert year. If your lucky this should all fall into place by about age 50-60.

Seriously? I was waiting for a punchline.

freedominacup

20silkcut wrote: »

You would have some job getting a loan off a bank to buy a farm at 17 years of age in your leaving cert year. Some job. Unless your parents or Uncle backed you to the hilt with collateral well in excess of the loan and a hefty deposit.
Better off to get officially trained as a farmer and run someone else's place for a few years play it cute save a few bob maybe buy a bit of land or marry a woman with a bit, keep your uncle onside as he gets older help him more and more eventually when he gets real old move him into your house give him a seat beside the Stanley in your kitchen keep him warm and sitting there all day and don't let any one else court him and make sure he signs the dotted line.
This is a far more plausible outcome than going to a bank in your leaving cert year. If your lucky this should all fall into place by about age 50-60.

Though there are plenty of bitter and twisted fellas around the country who tried that tactic and ended up with the price of a few pints after probate.

Username John

Madness...

Do your leaving cert.
Go to college next year, enjoy yourself, enjoy college life.
Get a job, and work hard when you can, to make money when you can...
But make sure to blow some of the money - you can really only do this when you're young...

Don't be worrying about paying off a bank loan, you have time enough left for that...

Get your qualifications, try to travel if you can.

Then, in a few years time, when you have all that done... Look at getting a loan / buying a farm, if you still want to

yellow50HX

Username John wrote: »

Madness...

Do your leaving cert.
Go to college next year, enjoy yourself, enjoy college life.
Get a job, and work hard when you can, to make money when you can...
But make sure to blow some of the money - you can really only do this when you're young...

Don't be worrying about paying off a bank loan, you have time enough left for that...

Get your qualifications, try to travel if you can.

Then, in a few years time, when you have all that done... Look at getting a loan / buying a farm, if you still want to

+1 on that.

get your LC then do a course you really want to in college and get soem qualifications.

your not going to be in a position to be able to borrow money for large loans for a while so dont worry about it. if your still intrested in farming after college then try traveling to see hows it done in other ocuntry's as it might give you a few ideas. you mightnt even want to farm in ireland.

delaval

Damo810 wrote: »

This whole CAP debacle got me thinking.

I'm 17, from the lovely west coast (well it's been alright this week now ), looking to head to collage next year (Lc this June) doing a course in agriculture. The plan is a career in Ag consultancy/advisory role.

I pretty much grew up on the Uncles farm, there was a summer there i never went home at all, and have a very strong interest in agriculture, and i'd say a good knowledge of it too. The Uncle, by the looks of it doesn't plan on hanging up the boots just yet and even though I'm doing a fair share of the work and having a sizeable input on the decisions, I have feck all of me own and see little to no reward, other than a few bob at the end of the week.

So..

There are a few places up for sale around me, one that caught my eye was a 32 acre farm, with an 8 bay slatted shed (4 solid, 4 slats iirc). I think they're looking for around the 250K mark, so in terms of loans I'd be needing up towards 275-300K.

Now I know I'l have help from the uncle when it comes to machinery and the like. but otherwise i'd be pretty much starting from scratch. What I need to know is:

1)With the way things are, is there any chance at all of getting money from the beloved banks? What sort of interest rates would I be looking at and over what time periods would I be able to get that sort of loan (if possible at all)..

2)What sorts of grants/subsidies would be available to me? Would I qualify for farm assist?With this new cap, would I get an increased SFP?What sort of figures are we talking?

3)With everything included, baseline farm profit, grants received and bills paid, is there enough money there to cover the loan repayments

You'll all probably think i'm mad, and sure maybe I am, but I just said I'd ask your thoughts/hear your stories (im sure a few of you out there have been in a similar position before)...

Jesus you are a breath of fresh air!!
The answer to your question is no you will not get the loan.
Make an appointment with your local manager because for a Pre leaving cert you do ask the right questions. Better still get your Ag science teacher to invite a local bank manager to the school and quiz them there.
I started with no land and after many years milking others cows I finally got finance from the bank. That was probably the proudest day of my life when someone else believed in me. I have no doubt that day will come for you but you should live life to the full now and do not waste time courting your uncle as he will see in time that you are worthy. By all means continue to help him it is he who is nurturing your love of agriculture.
Above all enjoy your youth and get life's experiences
All the best

Damo810

Username John wrote: »

Madness...

Do your leaving cert.
Go to college next year, enjoy yourself, enjoy college life.
Get a job, and work hard when you can, to make money when you can...
But make sure to blow some of the money - you can really only do this when you're young...

Don't be worrying about paying off a bank loan, you have time enough left for that...

Get your qualifications, try to travel if you can.

Then, in a few years time, when you have all that done... Look at getting a loan / buying a farm, if you still want to

I' definitely be doing the leaving, otherwise i'l never hear the end of it here at home, and you do need that piece of paper for everything nowadays..

As for collage, that too is almost a definite, if I get in of course, not sure what the plan is otherwise, repeat or do a lower level course..

delaval wrote: »

Jesus you are a breath of fresh air!!
The answer to your question is no you will not get the loan.
Make an appointment with your local manager because for a Pre leaving cert you do ask the right questions. Better still get your Ag science teacher to invite a local bank manager to the school and quiz them there.
I started with no land and after many years milking others cows I finally got finance from the bank. That was probably the proudest day of my life when someone else believed in me. I have no doubt that day will come for you but you should live life to the full now and do not waste time courting your uncle as he will see in time that you are worthy. By all means continue to help him it is he who is nurturing your love of agriculture.
Above all enjoy your youth and get life's experiences
All the best

Thanks,

Thats what I thought alright. What would be the advantage of meeting the bank manager? Just get to know him? Also I doubt the Ag teacher would be too keen on that idea

Good to hear others stories and I hope it's going well for ya!

Ps, I probably worded the first post a bit poorly, I don't mean to just go out and buy a farm/Land now. More something based over the next 5 years or so. Something after collage if I get in, or maybe a bit sooner if I don't go for the current Level 7's/8's. Thanks.

kowtow

delaval wrote: »

Jesus you are a breath of fresh air!!
The answer to your question is no you will not get the loan.
Make an appointment with your local manager because for a Pre leaving cert you do ask the right questions. Better still get your Ag science teacher to invite a local bank manager to the school and quiz them there.
I started with no land and after many years milking others cows I finally got finance from the bank. That was probably the proudest day of my life when someone else believed in me. I have no doubt that day will come for you but you should live life to the full now and do not waste time courting your uncle as he will see in time that you are worthy. By all means continue to help him it is he who is nurturing your love of agriculture.
Above all enjoy your youth and get life's experiences
All the best

Read every word of that advice at least three times.

It's the most comprehensive and common sense career advice I've ever seen. And every word of it is right.

I'll add one thought of my own - it is absolutely right and proper that you should be asking that most basic of questions "what will it take to buy a small farm which - with hard work and experience - will support me?". If new entrants (young or old) don't keep asking that question, over and over and over - and if we, as an industry and a country, don't somehow find an answer to it then there is precious little hope that we can prosper in a world which simply will no longer tolerate the cosy anti-competitive quangocracy which European agriculture has become for the last several decades.

The very best of luck.

P