Milk Price- Please read Mod note in post #1

Buford T. Justice XIX

Timmaay wrote: »

Will the individual farmer have the choice as to Oct to Dec, or Nov to Feb? If it's Nov to Feb it will hugely suit me as I've ditched all the autumn calvers, and pushed out calving afew days in Feb.

I don't know, Timmay, but there will have to be info in the next week or two so lads and lassies can do their sums.

OverRide

Spoke to a farmer the other day who was told by the representative on the phone,that the bank wouldn't finance his co op debt over 4 or 5 years because it was more than the life of a cow :eek:

I found that funny in an alarming way,it was so ridiculous

Keepgrowing

whelan2 wrote: »

Stan said last year your repayments will be the same if its a good year or bad year . So payments will be met but other things would suffer?

But your repayment amount should be based on the bad year, that way all get paid including yourself

Panch18

There are going to be some very serious problems in dairy in the next few month

Anyone with loans or land leased at stupid money is going to be reaching breaking point very rapidly

Keepgrowing

Panch18 wrote: »

There are going to be some very serious problems in dairy in the next few month

Anyone with loans or land leased at stupid money is going to be reaching breaking point very rapidly

Not forgetting the Revenue

Panch18

Keepgrowing wrote: »

Not forgetting the Revenue

Oh that bill is a couple months away

The big milk cheques are nearly finished for the year, I wonder where it'll end

Buford T. Justice XIX

Keepgrowing wrote: »

Not forgetting the Revenue

The BPS generally gets the revenue bill paid here.

jaymla627

Panch18 wrote: »

Oh that bill is a couple months away

The big milk cheques are nearly finished for the year, I wonder where it'll end

One of the main reasons I don't mind april/may calvers here, and good milky holstein cows, still sending 26 litres a day here and shouldn't drop below 20 litres till the middle of Nov, can't beat having a nice bit of cashflow over the autumn/winter months.....
For all the advantages of the "low cost" grass based cow, they simply don't generate enough cash in low price years, especially when you end up getting low 20's for the peak months of may/June

yewtree

thinking of going company route here to reduce tax bill here, anyone farming in a company on here?
Tax bill is a killer this year, income averaging is grand but you eventually run out of road with it

Mooooo

Income averaging could bite in the ass this year. For the preliminary tax if u get in all this year's figures to the accountant they can use an estimate of this year's for the preliminary instead of the matching last year's figure for it

mahoney_j

Keepgrowing wrote: »

Not forgetting the Revenue

Wonder how many know their tax liability for 2015 yet ???.knew mine in March but I bet a lot won't know or make there business to know till October or just before it has to be paid in November

mahoney_j

yewtree wrote: »

thinking of going company route here to reduce tax bill here, anyone farming in a company on here?
Tax bill is a killer this year, income averaging is grand but you eventually run out of road with it

Think long and hard and have lots of discusion with accountant .accounting bill will be higher but tax liability lower in ltd company .takes months to convert over

MIKEKC

yewtree wrote: »

thinking of going company route here to reduce tax bill here, anyone farming in a company on here?
Tax bill is a killer this year, income averaging is grand but you eventually run out of road with it

Farming as company for over 10 years. Works well here as no debts good BP and low drawings. I think you need to be at least 10 years from retirement to get the best value out of it.

trixi2011

Milk price rising steadily by 1.5 p in Aug and 2 p in sept for manufacturing milk UK brings our base price to a whopping 20p a litter. At least it's moving the right way, works out at about 24 cent in euro.

yewtree

mahoney_j wrote: »

Think long and hard and have lots of discusion with accountant .accounting bill will be higher but tax liability lower in ltd company .takes months to convert over

It's s big step alright and not to be taken lightly, taking money out of company can be quite difficult. saving on our tax bill would far outweigh increased fees though it won't help us this year anyway.
Good point on tax liability aswell lots of guys haven't a clue what they owe. 2015 wasn't that bad a year so likely to be some hefty tax bills where cap allowances are low. Have been putting a bit away from the best milk cheque a to help cover the bill, I got the final bill last month

Keepgrowing

yewtree wrote: »

thinking of going company route here to reduce tax bill here, anyone farming in a company on here?
Tax bill is a killer this year, income averaging is grand but you eventually run out of road with it

A bloody good experienced accountant. Some seem to be taking it as route 1 to reduce tax.
It's a new business structure and must be viewed as such.

blackdog1

Whatever you do don't put land in the company.

darragh_haven

Started farming as a ltd company about 5 years ago. It was when my dad was (on paper) retiring, and when I (on paper) was taking over. During the change over we paid a tax consultant nearly 5 grand plus account fees. Looking back it was money well spent. Best move we made, and there is alway inventive and fun ways of removing money from the company.

whelan2

http://www.agriland.ie/farming-news/ornua-ppi-rises-for-the-first-time-in-16-months/

milkprofit

darragh_haven wrote: »

Started farming as a ltd company about 5 years ago. It was when my dad was (on paper) retiring, and when I (on paper) was taking over. During the change over we paid a tax consultant nearly 5 grand plus account fees. Looking back it was money well spent. Best move we made, and there is alway inventive and fun ways of removing money from the company.

can u pm me with more info on these fun ways

milkprofit

yewtree wrote: »

thinking of going company route here to reduce tax bill here, anyone farming in a company on here?
Tax bill is a killer this year, income averaging is grand but you eventually run out of road with it

co good if u going to have high profits if set up correctly
tAKING MONEY can lead to high tax
the ifac top tax man is very good

MIKEKC

milkprofit wrote: »

can u pm me with more info on these fun ways

Can!t understand what he charged e5,000 for. Our accountant charged nothing extra, just the cost of setting up company

darragh_haven

MIKEKC wrote: »

Can!t understand what he charged e5,000 for. Our accountant charged nothing extra, just the cost of setting up company

It was more to transfer of assets. We had a very complicated set up even before i entered the fray. Siblings getting their share, land transfer, shares etc

whelan2

http://www.agriland.ie/farming-news/lakeland-dairies-increases-milk-price-for-july-supplies/

boggerman1

whelan2 wrote: »

http://www.agriland.ie/farming-news/lakeland-dairies-increases-milk-price-for-july-supplies/

When can I switch to lakelands quickly.glanbia will find some excuse mot to rise for a couple of months.

jaymla627

boggerman1 wrote: »

When can I switch to lakelands quickly.glanbia will find some excuse mot to rise for a couple of months.

If only it was that easy lakeland won't touch glanbia suppliers even ones with no msa signed, nice gentleman's agreement between the two

Buford T. Justice XIX

Fair play to Lakeland!

That should put pressure on the rest to rise as well.

Even in Nigeria:D

whelan2

Buford T. Justice V wrote: »

Fair play to Lakeland!

That should put pressure on the rest to rise as well.

Even in Nigeria:D

Fair play is right. Around here Lakelands used to be known as the poor man's CO-op...

Farmer Ed

whelan2 wrote: »

Fair play is right. Around here Lakelands used to be known as the poor man's CO-op...

Not sure that's the case any longer? Am I right in saying they also have some kind of independent milk testing? They seem to have got better value for money when investing also. They managed to tack on a 7ton per hour drying plant plus a 20ton packaging line to their existing plant in 2010 for 20m. To put that in perspective. Dairygold have spent at the last count 83.5 million on adding a 7.5 ton dryer and a packaging line to Mallow. Spending big money sounds great, but sometimes farmers don't realise they are the ones paying for it.

whelan2

Was talking to Glanbia rep here recently, he reckons Lakelands solids tests aren't as good as Glanbia's and any dual supplier would say Glanbia are better , can any one comment on that? Is it true?