Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie

Accounts attached - The current reality facing beef farmers - Any advice?

124678

Comments

  • Registered Users, Registered Users 2 Posts: 20,302 ✭✭✭✭Bass Reeves


    OP seems to have a long winter. This has increased his costs. He says that the land while very good and is capable of three cuts of silage changes rapidly and become incapable of keeping stick outside in winter.

    3-4 years ago we had lads advocating straw bedded houses in preference to ATS. He has s in Donegal. He probably gets 60''+ of rain in twelve months. Straw probably costs 10/ bale to transport from tillage areas to where he operates.

    His figures are horrific but his output figures seem ok about 1k/ Suckler weanling. Yes he is stocked low. Calving in January means he will have those cows calved and needing silage and ration for 10-14 weeks.

    It easier to keep a weanling over the winter than a suckker cow feeding a calf.

    Slava Ukrainii



  • Registered Users, Registered Users 2 Posts: 20,302 ✭✭✭✭Bass Reeves


    I would not consider him overstocked. I think it's the length of his winter and the shear costs of the cow over this winter.

    It immaterial how efficient or inefficient an animal is in a grass based system. Watching the marts all this week but the value in yearling for stores is quite clear. Buying yearling Friesians sub 300 kgs for sub 500 euro leaves a 15-18 month margin of 8-900 euro gross.

    Slava Ukrainii



  • Registered Users, Registered Users 2 Posts: 661 ✭✭✭GNWoodd


    You can’t refuse to sell but you can refuse to produce . The OP is getting 40 k per annum to keep the land barely ticking over and yet persists with keeping 70 suckler cows to lose 30 k of it .



  • Registered Users, Registered Users 2 Posts: 20,302 ✭✭✭✭Bass Reeves


    Ya his costs are the issue. He understands that it just trying to figure s way out of the system. You can add 25k on contractors, vet and some other costs bring him to 1 k/ cow

    Slava Ukrainii



  • Registered Users, Registered Users 2 Posts: 8,627 ✭✭✭FintanMcluskey


    Yes he is stocked low.

    He can't be if he has such supplementary fodder requirements, he may be stocked low compared per average across the country, but it sounds like his ground is incapable of supporting the stocking rate he has.

    Spending €11k on fertiliser, €10k on silage and straw & €28k on meal to keep 75 sucklers is not a low stocking enterprise.

    Although OP does say he gets 3 cuts of silage which is impressive for a place with long Winters.



  • Advertisement
  • Registered Users, Registered Users 2 Posts: 4,299 ✭✭✭Hard Knocks


    True but a dry suckler cow can be wintered on poor quality forage while a weanling needs good quality forage maybe with nuts too



  • Registered Users, Registered Users 2 Posts: 2,597 ✭✭✭Dunedin


    Aw well sure everyone cant be as intelligent as your good self. Or maybe you should loosen up a little for once.



  • Posts: 0 [Deleted User]


    I think he is definitely overstocked. The costs look very high to me.

    Buying freisian yearlings and expecting a guaranteed €4 a kilo is leaning on the optimistic side of things.

    Last year was great for beef cattle in many ways. But in a typical year the price isn’t as good but the costs are way lower.

    Extensive farming is the way to keep costs and labour down.

    Id agree with you that the long winter is a killer. Perhaps a shift to lighter stock and to get them out early?

    I finished a few freisian bullocks last year and they out ate anything in terms of ration and silage. Compare a nice suckler bullock off grass at 25 months to a freisian at 30 months after 7 weeks of meal at say an average of 4 kg a day ration.



  • Posts: 0 [Deleted User]


    Doing rough calcs there 11 k last year wouldn’t that have been like nearly 30 ton of fertiliser?

    Seems very high for a beef set up



  • Registered Users, Registered Users 2 Posts: 2,558 ✭✭✭DBK1


    30 ton over 250 acres would be only 2.4 bags/acre over the whole year, I’d consider that to be a very minimal amount, especially for someone taking 3 cuts of silage off some of it.



  • Advertisement
  • Registered Users, Registered Users 2 Posts: 20,302 ✭✭✭✭Bass Reeves


    I have adapted my system 3-4 times over the last 13 years. The present system is the longest I have got and there is another 1-3 left in it. At present I am wondering about an 18-20 month system finishing Friesian bulls off grass and 450-600 kgs of hulls/ barley/ maize. It's would allow you to draw the 100 euro sub 24 month payment that is proposed. I could finish them at 290 kgs O+2+ at a fixed price.

    It is not the fittest or most efficient that survive but those that can adapt

    Slava Ukrainii



  • Registered Users, Registered Users 2 Posts: 7,148 ✭✭✭SafeSurfer


    €9,808 profit on an asset worth, what,

    €1 million?

    No wage for yourself included in that.

    What is your opportunity cost?

    Its the money you could be earning if you weren’t farming, say for example €500 per week, €26,000 per year.

    Plus the money you could rent your land/sheds for. I am guessing here but say €15,000.

    Then disposal of assets and stock you no longer need for farming, say €100,000.

    You could be earning €41,000 per annum and have €100,00 in capital by not farming.

    I know it’s a lifestyle and a passion but if people looked at the hard, cold, figures it doesn’t make a lot of sense.

    Multo autem ad rem magis pertinet quallis tibi vide aris quam allis



  • Registered Users, Registered Users 2 Posts: 20,302 ✭✭✭✭Bass Reeves


    I would not consider myself intelligent, arrogant yes. I try never to ( maybe I have but I am sorry if I did) be sh!tty to new posters ( on f&f) I might not agree with them but I give them a bit of leeway

    It's is often hard to leave an efficient system. OP is 28 he has taken over the place I imagine,.and is shocked at the reality.

    Land can change very fast. Reseeding can make land very soft. I be forgiving of his inexperience. I was 41 when I bought my place I am twice to three times the farmer I was then to now

    Across 250 acres it's about 45/ acres. It's not outlandish. It's is outlandish on a per cow basis. A forum like this should be able to solve this detail.

    It's probably nearer 1.5-1.8 million. 30 years ago it would have been half that. Really it's only a matter of trying to make a sustainable profit

    Post edited by Bass Reeves on

    Slava Ukrainii



  • Registered Users, Registered Users 2 Posts: 20,302 ✭✭✭✭Bass Reeves



    Slava Ukrainii



  • Registered Users, Registered Users 2 Posts: 1,764 ✭✭✭lalababa


    Give the sucklers the gate, buy enough weanlings to fill quota (keep for 2 years). Rent out some land/silage ground. Rent out some of the sheds..Bnb or whatever.

    Your left with almost no work , f**k all expenses, 40k ,plus rent money, plus bnb money, plus whatever you make on the 20/30 weanlings...tis a no brainer from what you're at.

    Or go extensive/organic with the sucklers.



  • Registered Users, Registered Users 2 Posts: 1,764 ✭✭✭lalababa


    Or if you wanted full control of the farm, you could go for 100ish weanlings in a semi extensive set up. Very little work and shouldn't be much expenses.

    BTW your expenses seem waay over the top. I'd have a big look at them and shave them down drastically.



  • Posts: 0 [Deleted User]


    I think spreading 2.5 bags to the acre over the year on moderate land is outlandish in a beef system.

    The OP makes a very important point and that is the increased price in 2022 is quickly being swallowed up and then some by the massive jump in the day to day expenses in a farm of fuel, fertiliser, esb, labour etc.

    You make a very valid point earlier on minerals for cattle. Even on good grassland a shot of minerals to an underperforming animal can work wonders.

    A top tip for any beef farmer suckler or store to finish is improve silage quality and keep numbers handyish



  • Posts: 0 [Deleted User]


    I think it is a lot based on the system I run.

    I often make silage off surplus grass that got no fertiliser.

    On silage ground I’d put out 2 bags of can and slurry for a first cut.

    I think it’s a crazy expense.



  • Registered Users, Registered Users 2 Posts: 95 ✭✭nklc


    To look after 75 cows plus all followers is surely a full time job if it’s to be done well . Must be hard to hold Down a full time job and look after the farm efficiently, maybe that’s partly the problem. I can’t understand how he’s paying €5000 on insurance every year , maybe he’s been screwed on most of the costs as there isn’t the time to get value elsewhere



  • Registered Users, Registered Users 2 Posts: 4,299 ✭✭✭Hard Knocks


    OP I gather you’ve recently taken over, you’re reseeding, possibly fencing, tidying up allot of loose ends. It takes a good 3-5 years to get your bearings and possibly the same again to get a system to suit both you and your farm. You’re proactive and got a good head, lose the weight of expectation, just do your best. Shop around on your costs, like insurance play Axa, Zurich & FBD against each other and don’t be afraid to walk if you’re not happy. There’s been some comments to do this and that, but nobody knows your farm like you, don’t be afraid to make mistakes. I’ve been tidying up too, money spent on sheds, reseeding or fencing is a once off and you’ll have the benefit for many years, it’s best doing this now and hopefully you’ll reap the benefits when little ones come. Ideally sell weanlings as the come ready (keep an eye on market), if keeping over the winter do you need to meal when on the cow (will you be paid)? Test soil & silage to get as good as you can (remember you have to feed the ground for the cow to feed you) Work on your grass & cow management skills and if you think of condensing the calving is there an option for hired labor to calve when you’re working. Don’t be afraid to cut grazing that’s getting too strong (might save on 3rd cut)

    Best of luck



  • Advertisement
  • Registered Users, Registered Users 2 Posts: 2,597 ✭✭✭Dunedin


    Hi James,

    Suppose I better give you my serious response seeing as a bit of light-hearted input is not welcome!!!

    I’m actually not going to get into the farming side of things as this has been well covered by many posters. I work off farm in a well-paying job at management level but like yourself, it’s an area that if I dropped out of, I’d get it very hard to get back in, especially near the level I’m at now. You are 28 years old on a salary of €75k. That is exceptionally high at your age and will probably increase incrementally year on year – well done you but please look after that in the first instance. 250 acres is a big farm and if you continue to farm it progressively, it will eat a lot of time. You will, no doubt, end up leaving work a little early to attend to things and your work will suffer. And that will not go unnoticed either at work. Reducing to 4 day week is only an option if your employer hires someone for 1 day per week to cover you and as you’ve said yourself, you will still be expected to get the job done in 4 and it will only increase your stress and ultimately take from your performance.  Salaries of €75k are fantastic but I’d imagine that you are working damn hard at that as it comes with the territory at that level. Management won’t be interested in your farm but only what you can give to them. I’m going to assume you’re in the private sector so job protection is not as strong as in the public sector!!!

    Factor down the line with wife and kids, something will have to give.

    I farm 20 sucklers on 60 acres finishing all stock. I clear about 10-12K on the cattle and have about 16k on subs and I easily do it on average of 10 hours a week. Albeit I have a family member and good Neighbor to keep an eye during calving season. The job doesn’t suffer and apart from the missus giving out now and again, it’s all within reason. But calving 75 cows would be a huge challenge whilst working full time and in my view is not sustainable or safe. Health is your wealth and work-life balance feeds this so don’t forget about your own health in all of this.

    Best of luck at whatever you decide.



  • Registered Users, Registered Users 2 Posts: 1,171 ✭✭✭minerleague


    Think we've been had, the figures make no sense, 5k for diesel own tractor with that contractor bill? 25k feed while selling weanlings, 5k insurance ( sorry if I'm wrong



  • Registered Users, Registered Users 2 Posts: 9,783 ✭✭✭893bet


    If you read down a few posts from the OP they clarify that 5k included loads of stuff that’s not diesel like tyres, repairs to a quad etc.


    I suspect the same can be said for all the top level categories.



  • Registered Users, Registered Users 2 Posts: 1,171 ✭✭✭minerleague


    Go to OP, 7800 tractor running expenses ( includes insurance !), 5k diesel, 1225 tractorrepairs, ( 5 k repairs also)

    Just realised 7800 for farm jeep? sorry maybe I'm wrong so 😏 Still I cant get head round expenses



  • Posts: 0 [Deleted User]


    This is it the farm needs to be manageable if you are working

    No point killing yourself on top of a job just to be sending money to the coop or revenue



  • Registered Users, Registered Users 2 Posts: 3,347 ✭✭✭cute geoge


    It is the dream for any farmer really to have his problem which can be so easily solved with a few changes .Like not too many farmers in the whole country have 250 acres in one block!!

    The one thing which would be a sin would to be to put any of it in forestry ,I would rather have rough grazing in some wet spots



  • Registered Users, Registered Users 2 Posts: 124 ✭✭James2020App


    Yeah in fairness maybe €15k of those costs could be split across a few years. Yeah you are correct in the decent capital allowances available, just at the minute don't really have that much that needs improved in the sheds. Maybe actually new chutes and handling equipment come to think of it, but nothing major needed. Yeah good point regarding more focus on profit than output.

    Yup suckers are inherently unprofitable as I am noticing. To be honest even in prior years when I did the accounts for the farm they were not profitable then neither.

    The one thing that will be maximised going into the future is paddocking.

    This is a very valid point that I have never thought off before. Plus the heavy subsidies from the government make the problem was. And hands up I am definitely in the batch that somewhat waste their subs.

    Cheers, yeah step one is figuring out where I am at, and have already done that so now to search for where to go from here. Again I do need to focus more on paddocks.

    Oh yeah in genomics scheme so have a very good idea of genomics and ICBF records. This will assist in figuring which cows to keep etc. Already have an easy calving bull, thank God. Better having living calves than impressive hard calving calves.

    Not fully sold on the forestry, although there is maybe 30/35 acres marginal which I would give it consideration for.

    Organics scares me in a way because unless dedicate the whole farm to organics or to split it half organic half not. Can just imagine would be very difficult to manage records and manage everything, like not spreading fertiliser in certain fields etc.

    This is true and would be a few thousand less here too as in GLAS.

    From a rational viewpoint the short answer is definitely yes.



  • Registered Users, Registered Users 2 Posts: 2,220 ✭✭✭Who2


    hes an accountant with 250 acres, everyone’s telling him he’s not going to be able to run it part time and that’s pure bull-sh1t.

    a well set up place with a part time labour unit and everything invested back into the farm for a few years. He’s 28 mortgage and other commitments are more than likely a few years off so he has time to develop and set it up so by the time he’s 40 he should have everything streamlined and in top spec.

    he can of course just kick the can down the road and take the easy option, rent it out partially, go organic and let the wild flowers grow. When he hits forty he can consider whether he wants to fix everything back up properly, but it’ll probably take a crazy amount of investment and the thoughts and enthusiasm will have weaned enough at that stage to just let it all go.

    he’s an accountant that should be able to work out how far he can use the farm for tax and investment. I’d push to have everything ready and in top condition.

    after a couple more years working in an accounting role and I’d say he will appreciate going farming and maybe doing a few books as the part time hobby.

    but it’s each to their own, the decision he makes now will determine where he’s at years down the line.

    for me it would be•

    sort out your costs

    sort out the calving spread

    breed the right type whether he goes the weanling route or finishing

    invest everything back in until you’ve everything perfect.

    re-assess in three years time and decide then.

    youve a60k cushion more than likely rising to give you the opportunity to get going right.



  • Registered Users, Registered Users 2 Posts: 124 ✭✭James2020App


    A new John Deere? Nah if going to that extreme would go Fendt, really make a statement there 🤣. Wouldn't want to get any muck on it then though, although would look well outside the house. (Thinking about it would probably cost as much as the house itself....)

    There is a good degree of truth in this. Jumping from one system to another doesn't always make the most sense over the long term. No point in getting years of experience in one area to drop it with a view to making money in another area that may be a short term profit opportunity.

    The main breeds are charolaois and limosines. The beasts on the farm and all those leaving it are generally pretty good. I am thinking off staying moreso with the LM, because they are easier calving and although sometimes a bit mad are pretty good mothers from what I have seen of them.

    Finishing them all is an option. To an extent bringing them to decent weanlings and then selling oftentimes is giving the man buying them in the mart the main cut of what is a two year process.

    Totally willing to tweak current system, just trying to brainstorm really here how best to tweak.

    I do not feel as if I am overstocked when you divide the no. of cows to the amount of land available. However I do feel as if I am overstocked if you divide the no. of cows to the labour units that I have available, if that makes any sense?

    Yeah long story short, I have not been keeping a good enough eye on cost control.

    Trying to increase output on a suckler farm does not always seem to be the best way to increase profitability as have found out.

    Think 30 may be a bit on the low side for the size of the farm. If went to 30 part would have to be leased or something along those lines. Totally appreciate it is a more manageable number though and could yield to a better work/farm life balance too.



  • Advertisement
  • Registered Users, Registered Users 2 Posts: 124 ✭✭James2020App


    Yeah it is indeed a long winter. No too ways about it and the main enemy up here is the rain. It is just pretty consistent and there is the battle that is had every Spring. Spring to early Autumn is no problem but any other time not near possible to keep animals out so longer winter in really.

    Yeah agree with you on the not so much overstocking more the length of the winter does drive up the input costs a bit.

    Yup this is the crux of the problem that I am currently grabbling with and trying to find a way out to make it better.

    Yeah going to be a hell of a lot more concerned with costs going forward and properly cut them down.



Advertisement