Milk Price III

If derogation was to go you’d see the industrialisation of dairy farming which would suit processors down to the ground large herds in the hundreds in over their necks so they won’t be able to pull the plug and will have to put up with whatever bs the processors throw at them. We could be seeing the last generation of family farms if a lot of what’s mounting against the dairy industry comes to pass.

It's very hard to judge. The country has a record money over budget. Every one we know has gone on foreign holidays and the amount of fresh cars on the road is mad. I pick up the kids in my old Hilux and I'm surrounded by 3l BMW jeeps. Myself and my wife laugh wondering where we are going wrong. An electrician charged me 200 euro for a two and half hours work and I was lucky he came. He is ran off his feet with new houses. A lot with foreign owners here in West cork. I can't see a downturn only for farmers

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How do you get the dairy flex loan is it fixed at 4.96, the boi rep I was chatting on the phone was 7% variable unsecured was looking to refinance my remaining milk-flex loans like yourself, and asked could I fix the 7% and the answer was no

Farmers wouldn't be complaining if they got that rate. All that the tradesman supplies is the van, skills and a bit of equipment. Farmers have millions invested.

Equates to €2600 per week (allowing for 30 minutes travel time) and €120k per year allowing for 46 weeks per year. Fixed costs are all tax deductible. Not bad money if ya can get it.

to put in context, i got my house wired in 2010 for €100 day - (€500 week/€23,000 per year).

the boom is back…..

Comparing prices to the depths of the recession isn't much of a context either

Would you say he'd be better off to sell the van and equipment and go away and buy a farm and try a bit of beef farming instead....

Most beef farmers haven't bought their farms either to be fair.

Done a interesting calculation this morning on what average milk price per cent will be for us in 2023, from January to July I've averaged 47 cent a litre, at 4.32% bf and 3.42pr, looking ahead if milk price stays above 32 cent from Aug to dec, if similar liters and solids are done in 23 as 22, average milk price here will be circa 44 cent a litre.....

Its next year where the real pinch point is going to be on a vast majority of farms, and will leave cashflows in bits if milk prices don't rebound by summer 24

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200 quid for 2.5 hours work in an environment where there is no shortage of jobs. i.e. it wouldn't be that difficult to squeeze in 10 such jobs per week. That has you up to about 100k a year gross and you'd be your own boss. You'd pay for a lot of expenses before you'd be down at the average wage.

Presumably when these lads go to be factory workers that they are also entitled to bill the factory extra for the car that brings them to work?

(You can lease a van for about 300 quid a month which I think includes tax and maintenance but that is besides the point. )

It is hard to justify beef farming for an awful lot of lads on places that they own never mind renting or even buying.

Family history, personal expectations of the place, love of the whole thing.

The cheques in are big, the cheques out are big, the remains are not.

Nothing wrong with buying land to beef farm but no one should pretend it is a good use of the land or money.

Not a dig genuine question why even allowing for accountants advise . Is there so many businesses Investing into agricultural land 🤔. Imo its complete madness