Farm Takeover

SxS

Hi Lads,

Long time reader first time poster,

I will be finished in college this time next year. I have studied Ag Science. I have an elderly relative who farms 100 acres of land. I have worked with this relative over the years on and off. I hope to be in a position to rent the farm in the next few years. I have at present no capital to speak off. My idea is to go and work for a few years to build up capital. The farm is very modern and is ready to go as regards dairy or beef project. The main block is 70 acres with a 30 acre out farm.

What would I expect to pay in rent alone per annum?

Asides from rent how much capital would I require to get the farm up and running as a suckler herd?

I farm at home also so tractor etc is not needed and machinery I have at home also.

Regards, SxS.

Timmaay

Hmm before you go that far at all, how sure are you that you'll even get the farm? Have you specify been told that by the relative? And if so, can you get anything in writing/official to say you will get it. I'm just asking this because I know of cases where say a nephew spent years working on a farm, expecting to get it, only for another family member to step in, or for a will to say elsewise etc, no point having 5/10yrs of your life revolve around definitely renting it down the line and it then not happening.

SxS

I do not expect to receive the farm at all. I am talking about renting it due to my relative retiring. The farm is not being utilised to its full potential at present. The plan would be to rent it same as renting it from a complete stranger. There is no plan for me to inherit it at all. My main concern is, is it financially viable for me to rent and run this farm? How much capital will I need to raise to get it off the ground?

I am curious if anybody here has done something similar?

1chippy

100 acres stoccked with saay 70 cows your looking at 80-90k min for stock. a couple of k on paper work, soliciterss, teagasc advisor, etc.
a good 15-20k probably just for a float for silage, straaw, creep, esb, water and the list goes on.
insurance another 1k. then probably a heap of little bits and pieces that are very hard to account for.
if you have got that far you will be hoping you have enough to throw him the rent at the end of the year. then there will be the losses that will be inevitable with starting out from scratch.
After a couple of years you will be wisshing you were back at college, drinking too much and not getting laid as much as you wished..

Head off travelling and enjoy yourself for a few years and if its for you it wont pass you.

benjydagg

It doesn't say much about our education system if you need to come on boards to ask that question.
Rental should be approx €150/acre WITHOUT single farm payment. You will need to get entitlements,whether you buy them or lease them or get them for free as a new entrant. You cannot make a profit at dry stock without single farm payment income. ANYONE that says otherwise is demented. In 2014 I predict the market for entitlements will overheat, as farmers realize it is the only guaranteed income they will ever get from farming from here to 2019. It's the first question a bank will ask you. "how much is your SFP" the second question is "does your wife work?".. then they will analyse your accounts and tell you the obvious, "your only profit is the SFP"!!!

Get your education finished. Maybe do an add on module in dairy management, or forestry. Get a couple of years work under your belt, and then if you still want to farm, look to share farm with a non relative. Build up capital, and set out on your own.

Best of luck whatever you decide on. I'm 48 still not sure what i want to do with my life.., farming all my life and hoping to go down the share farming route with a young couple, if possible in the next 3 years.

But it will be dairying. NOT drystock.

kerryjack

Its nice to see your interested in farming and the industry needs young farmers like yourself that is well educated in the business of farming. If you have the right drive and work ethic I think you can make it in dairying. We are in dairying here since 1962 and still at it, some good years some bad still making a living out of it, I think the future in dairying is about partnerships, dairying is a hard game on your own , so maybe you could go into partnership with your dad or your brother and rent the 100 acres and see how it goes everyone had to start somewhere.

littlevillage

1chippy wrote: »

....After a couple of years you will be wishing you were back at college, drinking too much and not getting laid as much as you wished..

Head off travelling and enjoy yourself for a few years and if its for you it wont pass you.

SXS start small, maybe rent the 30 Acre piece of the farm off him and see if you can make a go of it as a kind of a part time enterprise while you are also working ... it is possible to make a few quid of out Dry Stock without the SFP, but you need to be as clever as a fox and watch the outgoings .. and be prepared to spend a lot of time at marts trying to 'get lucky' buying/selling

If this doesn't sound like you, then take the advice of the above poster :-)