Farmer Ed wrote: » There has been a lot of talk on here about big vs small or high input vs low input. IMO the most vulnerable are the ones with to much borrowings. huge pressure if payments are difficult to meet. Very hard to go broke if you don't owe anyone money. It's certainly one lesson I'm firmly taking from this year anyway. Maybe it's just me getting old?
Buford T. Justice V wrote: » There are discussions about a topup to the 11m euro and the sum will be 14c/l, presumably with a reduction in that for any excess liters. The sting in the tail is it will be paid in March if the 3 month reduction is Oct to Dec and April if the 3 month reduction is Nov to Feb. There will be a big hit to cash flow for any farmer qualifying for this.
jaymla627 wrote: » Is the 30k been averaged across the entire supply base scary figure if true some guys must have collasel bills built - up
Farmer Ed wrote: » Is the figure for merchant credit just for Kerry or a national figure? I'd hate to be a agri sales man at the moment.
Buford T. Justice V wrote: » From last night again. There is a large merchant credit bill outstanding, some 30k/farmer and that's outside of other money owed. The bill will come down but won't be cleared by all. Secure your money needed for next spring now as it will get scarce very quickly! Some stuff on the milk reduction scheme. Closing date 19th Sept and the quantity reduced has to be decided for that and has to be processed and in Europe on the 26th!! Now that's going to take manpower from everywhere else to meet that deadline so any BPS problems will be parked for that week at least. There are discussions about a topup to the 11m euro and the sum will be 14c/l, presumably with a reduction in that for any excess liters. The sting in the tail is it will be paid in March if the 3 month reduction is Oct to Dec and April if the 3 month reduction is Nov to Feb. There will be a big hit to cash flow for any farmer qualifying for this.
Farmer Ed wrote: » Futures markets points to another major rise in Global Dairy Trade @agrilandIreland http://www.agriland.ie/farming-news/futures-markets-pointing-to-another-major-rise-in-global-dairy-trade/
kevthegaff wrote: » Have a feeling this could be a double dip, hope I'm wrong..
Mooooo wrote: » But how resilient is a system longterm if it can't support borrowings??
Timmaay wrote: » but I'm happy enough I've my house in order, once I can remain relatively lowly borrowed I should have a resilient enough system.
Timmaay wrote: » Keepgrowing wrote: » Why? Stockpiles of grain in the USA also, the Chinese not really buying much either. 2bh I've given up worrying about the world market by now, it's all still going to be race to the bottom no matter what, but I'm happy enough I've my house in order, once I can remain relatively lowly borrowed I should have a resilient enough system.
Keepgrowing wrote: » Why?
Farmer Ed wrote: Futures markets points to another major rise in Global Dairy Trade @agrilandIreland
kevthegaff wrote: » Maybe if subsidies come in, anaerobic digesters for the large units
Brown Podzol wrote: Contract rearing and or export slurry.
Mooooo wrote: » Nitrates could be the next thing the EU could come out with to hit that system, obviously one can only play by the rules in front of you but if N limits are cut back what way do u think you'll go?
Keepgrowing wrote: » How are you managing 500 per space? Is this with slurry storage? Doing a job here expected in at 585 per cubicle with slurry storage. The storage will be 30% larger than cubicle numbers.
visatorro wrote: » Africans export gold, diamonds, oil and loads of mined resources. The money just doesn't go to Africans.
mf240 wrote: » Or sell the single payment and work away.
Farmer Ed wrote: » Judging by some of the profit figures released by some of the dairy based business the Irish dairy farmer has a lot in common with the Africans
kowtow wrote: » probably a year or two back As someone alluded to above, we are in a fix because we pay expensive labour in an expensive country for services, but we sell at the global (low) commodity price. We are un-competitive (in the pure sense) in terms of scale and in terms of labour cost, the baler repair above being an example of both. We have small farms, very high costs for everything from land to groceries, and an awful lot more machinery per acre (as a result of small farms) than is economically efficient. Or, more crudely, as the editor of an African daily newspaper once said to me "our problem is, we are a country which wants to buy Mercedes, but we can only export T shirts to pay for it"
Farmer Ed wrote: » I get your point but no matter who owns the baler the cow still has to pay to fix it. If the cow is making less in real terms at what point do you reach a point where is just no longer viable?
Timmaay wrote: » Agreed, which is why I'm always open to other potential silage suppliers ha. Looking at the tillage sector at the minute I'm fully open to more maize or whole crop also however, in general it comes down to a c/kgDM for me. One reason why I'm changing my tune to expansion moving forward is a large part of the jigsaw is just slotting into place, that being the extra winter accommodation, going on the typical grand spec department costings I had assumed extra cubicles would be coming in at the likes of 1200+/cow (or say 800 after grand), however I'm just after pricing up a job, I should be able to get it for alot closer to 500/cow if I go non grant, or as low as 250/cow if I can get over the line with the 60% grant. It's only a 5year payback at that that sort of cost, which let's me remain nicely on the fence ha.
