Dairy Chitchat 4, an udder new thread.

mahoney_j

https://www.boards.ie/discussion/comment/123213908#Comment_123213908

at 20 k per acre …..no ….land not far from me made over that recently …farmer bought and not development land ….imo that’s stupid money for land but each to there own

mahoney_j

Don’t know ….think high beef and milk prices are driving lads mad ….and giving landlords unrealistic expectations around land rent and sale price ….wether your ltd company or not you need to know your limit

daiymann 5

https://www.boards.ie/discussion/comment/123210935#Comment_123210935

Its to save tax simple to buy land u you need to pay tax on the money to buy the land to meet repaymets

Tonynewholland

https://www.boards.ie/discussion/comment/123213997#Comment_123213997

If a 10 acre field beside you could be bought for 200k I wouldn’t say no.

mahoney_j

https://www.boards.ie/discussion/comment/123214127#Comment_123214127

wouldn’t make economic sense to me ….farmers need to step back and breath and have a think if you ask me .land is a good investement but not at that sort of money

whelan2

https://www.boards.ie/discussion/comment/123214327#Comment_123214327

Indeed there's more to life than killing yourself working to meet repayments, just to be billy big balls with more cows, more land than others.

cute geoge

Just taking to one of the biggest purchaser of land locally a while back and just hopped the ball ,it must be up to the time that they would buy again.

Different Story now he said impossible to find good labour to make it worth while.

mahoney_j

https://www.boards.ie/discussion/comment/123214459#Comment_123214459

exactly …there’s that plus the other big one …cost of compliance

Siamsa Sessions

https://www.boards.ie/discussion/comment/123214573#Comment_123214573

Compliance = concrete and steel.

I'm guessing increasing cow numbers after buying land also means more building. Would you get out of it for €2-3k per cow? So, add that onto the €20k/acre?

ginger22

What started this debate was the once in a lifetime chance of buying the plot next door. Seems to have got sidetracked.

mahoney_j

https://www.boards.ie/discussion/comment/123214865#Comment_123214865

land next door in lot of cases is a once in lifetime opportunity ……but why totally overstretch yourself and have a massive financial commitment every month for the privilege ….i always had an absolute top end figure of 12/15 k per acre for land that’s more less good to go ….at 20 plus whoever wants it and all that goes with it …drive on

awaywithyou

https://www.boards.ie/discussion/comment/123214678#Comment_123214678

Maybe a farmer might have cow numbers and may drop rented land if a purchase was made... I'm a little shocked at the attitudes towards buying land... I would have thought that every sort of a farmer out there would have it in their head to buy some bit of land if it arose...

whelan2

https://www.boards.ie/discussion/comment/123215062#Comment_123215062

Maybe when dealing with the banks wasn't so hard, but they make it so difficult- around here anyway- lads aren't bothering anymore

straight

Alot of it comes down to personal choice and circumstances I guess. My parents left each of us an 80ish acre farm. A bit small going forward as they say. We have all bought land since. I'm up to 140 now and I'd buy another bit if it came up or sell some to buy an adjoining block if the opportunity arose. Not under pressure with payments and not under pressure with nitrates now either. Went from 65 cows plus replacements to 95 plus replacements.

Also, my parents left me a viable farm and to pass on a viable farm it has to be bigger than 80 acres really.

I'm in my mid 40's now so only a few more years to buy more land. No milking in my 60's for me is the plan.

I generally always liked buying property or the idea of it. Something tangible and something I can leave as a legacy or as passive income.

Bass Reeves

https://www.boards.ie/discussion/comment/123215196#Comment_123215196

I was over 60 when I bought the last place. There might be another rodeo in me yet. Never say "never again". From a standing start we have 135 acres. A fort is taking up two acres, there is about 15 acres of marsh/wetland and a hectare of a lake. So about 115 acres of decent land.

Jb1989

https://www.boards.ie/discussion/comment/123215380#Comment_123215380

What land had yous at home place in kerry. Is it still being farmed?

Siamsa Sessions

https://www.boards.ie/discussion/comment/123215062#Comment_123215062

Ah, for all my being cautious, I'd consider land if it came up beside me. And I'd probably bury my head in the sand on the hidden costs like compliance, fees, finding labour ,hassle with loan applications, etc.

There's two blocks bounds-ing me (60-ish acres) that were part of the original farm before my grandfather divided it up. If they come up for sale (or rent), I'd seriously look into it.

I just need to start getting milk collected first!!!

green daries

https://www.boards.ie/discussion/comment/123214865#Comment_123214865

But is it really side tracked...... if he buys the has to do as other lads say spend another ball on cows sheds etc etc etc. I'm not saying don't buy it and your 100% correct it's once in a lifetime on that ground anyway... but it must stack up in some form or another 🤔 providing the money isn't going moldy in the attic...

Tonynewholland

https://www.boards.ie/discussion/comment/123214875#Comment_123214875

10 or 20 acres isn’t going to put massive pressure on most farmers to buy. I think if you let the likes of that go you would regret it after. Different story buying 100 acres unless you have something to offload somewhere else.

stanflt

https://www.boards.ie/discussion/comment/123215905#Comment_123215905

there’s 119 acres in it

stanflt

I’ve been thinking in overdrive for the last couple of days- my heart says buy it but my head says no- accountant pointed out that all repayments on principal will be subject to tax as it won’t be bought in a limited company- interest can be written off thou- no tax allowance like building or buying machinery to hide profits as cash flow would be tight- will need to spend 1 million plus just to double cow numbers and find more rented ground to make winter feed on

Could sell properties how these have a net monthly income and serious positive rquity- as the accountant said 119 acres at 25000 an acre would buy 9-10 properties in Drogheda with an income of 2000 per property per month

mahoney_j

https://www.boards.ie/discussion/comment/123215905#Comment_123215905

20 acres at 20 k is 400 k …you need deposit …stamp duty and solicitor fees …that’s before you do anything with the land like reseeding /fencing etc …..400 k plus above …no sense to it for me

dmakc

I've bought a few 20ac blocks adjacent to the home farm in past few years. The "land beside you" mantra is fine but without limits it'll quickly sink a farmer.

129ac in one block is significant but I suppose it depends on the capacity of the farming enterprise, age, additional workload, slurry storage for increased stock, next generation potential come to mind. Also looking at someone else farm it for the rest of your life. At least you have a middle option in the half block which might be a happy middle ground.

The biggest thing to put me off that would be the 200k stamp duty to the bollix's in the Dail to waste with OPW, but somebody's going to give that anyway

cute geoge

https://www.boards.ie/discussion/comment/123216058#Comment_123216058

400k would buy 2 semi-d in local town ,rent out easy at 1500 /month returns 36k/,annum without losing sweat.

What return would 20 acres out farm return on investment .Land investment does not look too attractive at the current time

straight

If the head ruled the heart there wouldn't be too many people farming imo. Alot of nice jobs available like. 20k is expensive alright. I bought 2 years ago for 9k.. more like 10 or 15 around here I'd say now.

GrasstoMilk

https://www.boards.ie/discussion/comment/123215380#Comment_123215380

how are you funding the purchasing of land or how did you get your start ?

GrasstoMilk

My parents bought 115 acres 21 years ago this year after selling a 40ac farm they bought off my grandmother back in the 80s.
It was tough on them trying to pay it for the 1st ten years it’s no issue now, we could pay double the yearly repayments on it and we wouldn’t feel it. They’ve given me a great start. My plan would be to buy the amount of land we’re leasing /renting yearly over the course of my farming career to leave a farm big enough for 200+ cows on owned land for who ever farms it after me.
We’ve everything here that has been mentioned not to do but when you’re starting from a low base you have to take any opportunity available to progress and catch up with the lads that inherited land/machinery/infastructure

whelan2

https://www.boards.ie/discussion/comment/123216006#Comment_123216006

You'd still have to update your milking parlour

stanflt

https://www.boards.ie/discussion/comment/123216611#Comment_123216611

definitely and I’d also need another labour unit which is very hard to get and keep

My wife is a teacher and she thinks I’m utterly bonkers for potentially risking the current life we have -she thinks I only want it to keep up with the jones

straight

https://www.boards.ie/discussion/comment/123216679#Comment_123216679

Ah she's too used to the soft life in school. Don't mind her.