What's the best thing to do with 25 top quality acres

digzy

I inherited 25 acres of land. It's top quality in the golden vale. I've a green cert, from a farming family but I don't farm myself. My dad works away on the home farm but is more hobby farming than anything else. There's no entitlements with the land I inherited.

Anyway I'm looking for suggestions for the place. I'm not selling it.
I'm looking at either
1 short term rent ( think rent on it would be 200-250 p/acre
2 the 15 year rent mentioned in the budget
3 stock it myself. An uncle is a dealer and advised buying strong bullocks in spring and leave them to the end of the year.

Advice appreciated.

rangler1

digzy wrote: »

I inherited 25 acres of land. It's top quality in the golden vale. I've a green cert, from a farming family but I don't farm myself. My dad works away on the home farm but is more hobby farming than anything else. There's no entitlements with the land I inherited.

Anyway I'm looking for suggestions for the place. I'm not selling it.
I'm looking at either
1 short term rent ( think rent on it would be 200-250 p/acre
2 the 15 year rent mentioned in the budget
3 stock it myself. An uncle is a dealer and advised buying strong bullocks in spring and leave them to the end of the year.

Advice appreciated.

Unfortunately the best option is no.2, You mightn't have to commit to 15years to get it tax free

Quandary

Just out of curiosity, what exactly is option 2 guys?

rangler1

Quandary wrote: »

Just out of curiosity, what exactly is option 2 guys?

You can get your rent tax free if you lease it for five years or over, of course TERMS AND CONDITIONS APPLY, but I don't think they're too onerous.
If you're able to get 200/ac tax free, what would you have to make farming it:D

HAVE A QUOTE HERE
''tax free thresholds for long term leases of 5 (18, 000) 7 (22,500) and 10 years (30,000) and the introduction of a new 15 year lease tax free threshold of €40,000 for lessors of any age will help increase the level of land on long term leases.''

Connemara Farmer

digzy wrote: »

I inherited 25 acres of land. It's top quality in the golden vale. I've a green cert, from a farming family but I don't farm myself. My dad works away on the home farm but is more hobby farming than anything else. There's no entitlements with the land I inherited.

Anyway I'm looking for suggestions for the place. I'm not selling it.
I'm looking at either
1 short term rent ( think rent on it would be 200-250 p/acre
2 the 15 year rent mentioned in the budget
3 stock it myself. An uncle is a dealer and advised buying strong bullocks in spring and leave them to the end of the year.

Advice appreciated.

What I wouldn't give, can I roll it up and take it home please?

Suggest you contact Teagasc and do one of their Options courses. It'll give food for thought outside of the normal ideas. Doing one here and finding it very informative.

C0N0R

What do you want to do with it? Do you want to farm it or do you want to do whatever makes the most financial sense? If you want to farm it what kind of farming appeals to you? And if you want to make the most amount of money from the least amount of Labour lease it over for five years for as much as you can.

digzy

C0N0R wrote: »

What do you want to do with it? Do you want to farm it or do you want to do whatever makes the most financial sense? If you want to farm it what kind of farming appeals to you? And if you want to make the most amount of money from the least amount of Labour lease it over for five years for as much as you can.

As I said, I'm not a farmer and have enough to do being self employed and having a young family.Just felt that if the going rate for land in the area is 200-250 per acre surely the renter must be making a profit too or wouldn't be doing it? Maybe it's something to do with the single farm payment? Was thinking that for what I imagine is little enough work would I be better off farming it myself. Can you build up an entitlement on land with none on it at the moment?

I'd be paying a fair chunk of tax at the higher rate so the tax free option earlier would merit some consideration. But it appears to only apply to over 40 year olds and incapacitated of which I'm neither

Username John

digzy wrote: »

As I said, I'm not a farmer and have enough to do being self employed and having a young family.Just felt that if the going rate for land in the area is 200-250 per acre surely the renter must be making a profit too or wouldn't be doing it? Maybe it's something to do with the single farm payment? Was thinking that for what I imagine is little enough work would I be better off farming it myself. Can you build up an entitlement on land with none on it at the moment?

I'd be paying a fair chunk of tax at the higher rate so the tax free option earlier would merit some consideration. But it appears to only apply to over 40 year olds and incapacitated of which I'm neither

No, that changed in this budget, you don't have to be over 40 or incapacitated.

I am in the same boat as you (full time job, small family) and am looking at letting a good piece of the farm, and keeping a few acres around the house for 'hobby farming'
I couldn't justify farming it against the rent I could get tax-free (in terms of both time and financial return)

jfh

Connemara Farmer wrote: »

What I wouldn't give, can I roll it up and take it home please?

Suggest you contact Teagasc and do one of their Options courses. It'll give food for thought outside of the normal ideas. Doing one here and finding it very informative.

went along to the one in Limerick, just the first night with Brendan, nice guy.
where's the one in galway run?

Connemara Farmer

jfh wrote: »

went along to the one in Limerick, just the first night with Brendan, nice guy.
where's the one in galway run?

Letterfrack in Connemara, only two nights left and the final one will be about succession. Find it good for generating ideas, when I go Googling then they often lead to other things.

Brendan has his head well screwed on alright.

Reggie.

Connemara Farmer wrote: »

What I wouldn't give, can I roll it up and take it home .

You ain't the only one con. Someday someone will leave me land




:rolleyes: I wish

Bullocks

Connemara Farmer wrote: »

Letterfrack in Connemara, only two nights left and the final one will be about succession. Find it good for generating ideas, when I go Googling then they often lead to other things.

Brendan has his head well screwed on alright.

Have ye a 75 year old on the course back there ? He told me he was doing it to try and make a few more quid instead of buying bullocks He doesnt intend giving up anytime soon thats for sure

Connemara Farmer

Bullocks wrote: »

Have ye a 75 year old on the course back there ? He told me he was doing it to try and make a few more quid instead of buying bullocks He doesnt intend giving up anytime soon thats for sure

We could have, I'm not entirely sure to be honest! I'll keep an eye out Wednesday night.

Muckit

Reggie. wrote: »

You ain't the only one con. Someday someone will leave me land




:rolleyes: I wish

Your stuck to that FIL like flies on a cow ****e!

sh1tstirrer

Connemara Farmer wrote: »

Letterfrack in Connemara, only two nights left and the final one will be about succession. Find it good for generating ideas, when I go Googling then they often lead to other things.

Brendan has his head well screwed on alright.

I went to two of them options courses over the years nothing came out of it. Any of the ideas I could do ended up non runners. One was tourism but to get in with board failte I would need 5 star accomadtiom wheelchair access and all that. With hotels giving great offers now agri self catering is dead.

Markcheese

Op take the money and run ... Just stipulate in the lease how you want it kept , (Ie, be prepared to take a few quid less to get a guy who'll keep the place in good heart - so fertilizer-lime, organic matter , possibly fences... Basically if the place is in better condition when lease is up and you've had a few quid in yr pocket you'll be doing well ..
On the tax front if you invest the land income into a pension you wouldn't get flaa'd on tax... Ie. One assets income would be buying you a second asset..

Reggie.

Muckit wrote: »

Your stuck to that FIL like flies on a cow ****e!

That's what you think my boy

ellewood

digzy wrote: »

I inherited 25 acres of land. It's top quality in the golden vale. I've a green cert, from a farming family but I don't farm myself. My dad works away on the home farm but is more hobby farming than anything else. There's no entitlements with the land I inherited.

Anyway I'm looking for suggestions for the place. I'm not selling it.
I'm looking at either
1 short term rent ( think rent on it would be 200-250 p/acre
2 the 15 year rent mentioned in the budget
3 stock it myself. An uncle is a dealer and advised buying strong bullocks in spring and leave them to the end of the year.

Advice appreciated.

If ya really want to farm it...

If theres any sort of housing suitable to winter weanlings and if you are in an area with dairy lads Id see about contract rearing heifers - its the least risky, theres still work with them but there easier managed than buying cattle or sucklers.

If ya had 25 calves/weanlings and 25 maiden/incalf heifers on the 25 acres youre looking at E5500 or E6000 a year

Markcheese

ellewood wrote: »

If ya really want to farm it...

If theres any sort of housing suitable to winter weanlings and if you are in an area with dairy lads Id see about contract rearing heifers - its the least risky, theres still work with them but there easier managed than buying cattle or sucklers.

If ya had 25 calves/weanlings and 25 maiden/incalf heifers on the 25 acres youre looking at E5500 or E6000 a year

Income ?? Out of that take your costs , pay tax on profits as well as do the work ? I think I'd rather develop a good long term lease with a local who won't wreck the joint , get less cash in and focus on the day job ...

ellewood

Markcheese wrote: »

Income ?? Out of that take your costs , pay tax on profits as well as do the work ? I think I'd rather develop a good long term lease with a local who won't wreck the joint , get less cash in and focus on the day job ...

Thats after costs - thats youre margin for labour/land.

digzy

Cheers lads, thanks for the replies.

I think the broad thrust of the advice is to rent the thing, esp if there's a tax free option.

I was thinking of going thru an auctioneer for peace of mind. How much would you be looking at in terms of a fee?