Panch18 wrote: » Super stuff Gruller and other lads on here. Really interesting to hear yer stories and changes The big thing in Ireland is tax. With the high rate up at 51% with everything added in people are working a lot of extra hours that are going straight to the government. As Warren Buffet says “As one of the richest men in the world I can buy anything I want, EXCEPT time”. So working all these extra hours and with additional responsibility etc people really need to think to themselves if it’s worth it and are they themselves seeing the benefit of it or is the government the real winner Now of course lads part time farming have a great opportunity to get great farm set ups and offset the losses against the high rate tax from the job. This is probably the easiest way to get a farm well set up nowadays.
Bass Reeves wrote: » I would not be getting into milk in my 50's it's a young man's game. Generally in your 50's you have a huge demand for money as kids go through college and maximising pensions benefits that you can draw when retiring. Anither consideration is drawing down a few hundred k in debt( if banks will lend it) and maybe investing other available cash in an enterprise that will limit options for retirement or for inheritance. I am semi retired and farming 60 ish acres, I can finish 60 stores that will leave a net margin of 15k plus add in GLAS(it small 1700 euro) ANC will bring me well up over 25k. I have an an old farm house done up and rented and another rental. Last year I worked 20 hours a week for 6 months that earned over 10k. Only did half that this year. There is easier ways to retire and farm than being tied to a milking parlour twice a day 6-7 days a week for 10 months of the year.
Green&Red wrote: » The value of a good accountant can’t be underestimated The last couple of years I’ve contracted into a couple of local pharmaceuticals, so had a VAT registered company for that. Accountant set up a farm company which ownes the pharma side. Means I can earn off farm but pay straight off the loan without Paschal seeing a cent of it. Will also allow me to save up in the company at a lower rate of tax with the view to buying any land that comes up around me Stuff I wouldn’t have had a clue about
Pinsnbushings wrote: » Yes I can see where your coming from and fair play you have a great setup there something is like to aim for in the future maybe.. but in terms of it being a young man's game for context my father is 70 and lot of the reason we stayed at milk was because as grueller said the cows are lot safer and easier handle. The other thing we've done is milk the cows oad for last 2 years, so it's worked great for us. Like I say with sfp it'll leave 40kish. On pure financials leasing with the tax benefits would be as profitable or more so, bit its not all about that, dad has his routine which he loves, and Im around to take the pressure off and I enjoy it too, and if land was to come up around us we'd be sorta setup to take it on. Fair play to all the lads starting up or thinking about it and best of luck to all, ]great to see all the different set ups out there not just the 100+ cow setups which is all you see in the journal etc.
Green&Red wrote: » @Siamsa your inbox is full, if you empty it I’ve a message for you
Siamsa Sessions wrote: » In case it’s of any use to anyone, this is my plan: * Start milking 35 cows in 2022, OAD in shoulders of the year, and continue working part-time (5 half-days/week) * Expand to 65-70 in 2024 when we unlease land back from current tenant and give up “day job” Debt starting off will be approx €1.5-2k. I’ll tear into repayments as we can manage the house/kids with just the part-time job. We’ve managed this with the last 2 years as I took no drawings (there weren’t any to take!) from the sheep/calves. I’m tracking how many hours I’m currently working per day and will continue this for the next while to see what kinda hours I’m spending around the yard I’m more than happy to share the good, the bad, and the ugly on here in the hope it might be useful to others and maybe help people avoid some of the mistakes I make. I don’t expect or assume any of our 3 young lads will go farming but I’d like to give them the option and let them see what being a farmer is like. I’ll have nothing to show them from Daddy being an office worker. If it works out then great. If it doesn’t I’ll change things again. I’ve made a few big changes in my 20 years of working so I don’t mind change!
Panch18 wrote: » How’s the once a day going for ye? What type of cow are ye running? Any major problems when you changed over?
Pinsnbushings wrote: » It suits us so far, suppose we were lucky in that neither of us were totally dependent on the farm so could try something different. We would have a fairly British friesain type cow as we would have always kept the calves to 18.month stores, and still do. I was afraid they wouldn't be milky enough and dry off very early and a couple did last year. upside They made 900 in the mart straight out of the parlour which is an advantage of them being in great condition. Couldn't say we had any major problems, this is our 2nd full year now. We were lucky enough we had decent springs and could get them out as we'd be tight enough on cubicle space. Ya need to be on top of your scc and they can leak a bit with big full udders. So prefer to have them out. They go back in milk a fair bit quicker and heifers would have peaked around 14 ltrs. But we had a few cows milking 18 ltrs up to about 10 days ago so I think with bit of tweaking we could be in around coop average for solids per cow.They say it takes about 3 years. Some very impressive oad herds out there that are at it years which kinda gave us inspiration.
Birdnuts wrote: » Would you not need to calculate different scenarios based on different milk prices?? There seems to be alot of assumptions by new Dairy folk that all will be rosy on that front in the future
Panch18 wrote: » Super stuff Interesting that you have a Br Fr base on the cows, that’s what I was wondering myself if that type of cow would suit and it’s very interesting that it seems to be working fine for you I assume you’ll be sticking with the Br Fr then if you’re rearing the calves?
Siamsa Sessions wrote: » Fair point and to be honest I’m working off a base price of 28c. Above that will mean paying off a lump sum against the loan. Below that for more than 12 months and I’ll be selling the cows, selling the milking machine and bulk tank, converting the parlour to a straw house, and getting back into sheep/calves. I’m lucky with the off-farm income paying the bills at home. If it wasn’t for that I doubt I’d be trying to go milking again.
cjpm wrote: » Should be easy but in practice everyone over values their own patch
Markcheese wrote: » How amenable or approachable are most lads to land swaps ? Tractor porn was saying he had 4 blocks away from the home place , 1 block about 12 miles away ... ? You'd know your next door neighbours and who you could deal with , or is it just too akward to do , I suppose as well , a land valuation is only what someone is prepared to pay for it ... If you're offering well drained ,well fenced land , and the other party's ground isn't then there'd be a lot of horse trading ..
Markcheese wrote: » Actually if I had a block 12 miles from the yard , and was considering getting into dairy , I think I'd sell off the distant block ,and use that to start off as near debt free as possible. ...
Tonynewholland wrote: » Sell and buy closer to home would be a better idea or else you’d be paying CGT
wrangler wrote: » Is there still roll over relief available, CGT isn't that much on land, Only paid 12% here on a CPO where the price was 50000/ac so can't be much on €10000/ac Stamp duty and solicitors are probably a bigger pain
Tonynewholland wrote: » Yes still there. Isn’t CGT 33% not sure about CPO rates nowadays.
wrangler wrote: » 33% of the difference between the value the land had when you took it over or paid for it and the price you got for it, CPOs are taxed the same way. As I said It worked out here at 12% of the price, I'd say that at 10 -20000/acre there'd be very little CGT to pay
Tonynewholland wrote: » Don’t you also have to own and farm the land yourself for 10 years if inherited or you pay CGT if you sell.
wrangler wrote: » Maybe you're referring agriculture relief on Capital Aquisition Tax If you're gifted/willed land, your Capital Aquisition Tax is reduced by 90% if you farm or lease it to a qualified farmer for six years, sell it before that and you pay the full tax There's other terms and conditions too
Tonynewholland wrote: » Yes. Most farmers thinking of getting into dairy are young and mightn’t own these outside blocks long enough I think it’s 10 years but I could be wrong. In most cases selling an asset such as land to finance a dairy setup wouldn’t appeal to me
