Re Belview: a man said to me when they started building it a few years ago that milk could come in as well as go out thru the port in a few years.
Strange times
Al processors need to stop this soft selling of product and demand higher prices from their customers and pass it back to farmers or they will all be short of milk. And they need to do it now. Waiting until next year will be too late to stop the rot.
From others?
Milk lorry driver told me this morning that Tirlan are now taking in milk to fill the Wexford plant, not to mind this new one in Belview.
They're matching my other supplier for prices and the quality of the nuts has been good like for like in fairness, it's a serious saving for anyone feeding a good bit of meal, works out at 1.5 cent a litre here for them 2 months
Actually they are very competitive on feed prices atm. For once
Tirlan must be getting nervous about winter supply. Pay an extra few cents be more in their line.
Have no idea how it was funded I just presume a fair hand was given to son as can’t see him having taken out all that money, mother would work outside of farm wouldn’t be involved in the farm to much extent. I’m sure sister will be looked after in other ways…
Very unfair by the parents if everything gone into the farm
One sister just graduated university this year
Has he any siblings
The thing is that we ll end up spending the money anyway.whether you borrow at the start or pay as you go you will work out much the same as the interest will equal the inflation in cost down the line.the brutal truth is milking cows is very capital intensive and while putting it up front sounds scary we ve allvspent the same or will have by the time we re up to spec
as said... you wont get money without life cover in place... and i would have thought that borrowing to build a shed or pour concrete is more tax efficient than paying for it out of cashflow.... we have done it both ways... and i would borrow.. as you will cut corners paying from cashflow... cutting corners on capital expenditure usually comes back to bite you
If no other debt and land base there, putting in that from the start I wouldn't be against tbh. The hours saved by having good facilities aren't to be dismissed either, can take a lot of pressure off a person. Looking at my own setup here If I had 10, 100 or 200 cows the whole lot needs replacing, would prefer to do the whole lot in one go but will likely have to fcuk around bit by bit with it over the next number of years. Each to their own but if someone is going for it best thing to do is wish them the best of luck imo.
More than likely his father gave him a big hand but 100k would have went an awful long way to additional cubicles and a few extra units to get up and running for the numbers he says he wants to operate. Could have used tams etc for calf shed and feeders if he wanted to in time. This was no wreck of a place like.
We have a 10 unit parlour milking 12 rows this year no automation bar the feeders and bulk tank simple system and I’d hardly call it hardship, if you ever wanted to expand could add on up to 6 more units for handy money compared to a greenfield project.
Wont be asking my parents for anything when it’s my time and they wouldn’t give it to me anyway.
Financially the best thing they could do is give it to him. If they do need nursing home care then it would come out of that pot under the fair deal, if they don't then its just their pension
Usually never ends well doing the above, that money should of been left to them for their retirement, down the line if/when they need nursing homecare/money to top-up their pensions etc, their will be expectation that the chap in question takes care of them financially.....
In my opinion money should only be borrowed for appreciating assets like land or investment property.
Famous last words
On the positive side, at least you can depreciate the likes of sheds.
You won't get borrowings without serious illness/ life cover in place
his parents had a right nest of it gathered up and he obviously spent it... best of luck to him.. im sure he'll be grand... tbf he has the land base and the cows were there.. all he did was added the facilities.. shure he has the building work done now and he has the rest of his life to pay for it...
The only trouble is if borrowing big money for farm buildings, what if something goes wrong like health problems, mental or physical. The sheds cant be sold. At least if borrowing for machinery or land purchase the asset can be sold to pay off the loan.
If you're going to milk cows for the rest of your days you might as well have some comfort doing it. Who are we to judge what other lads at at. Let them at it
At 400k borrowed on a 15 year term at 7% intrest he's looking at repayments of 3400 a month without anything else added in put in a tractor and jeep on the drip aswell and your up to 5k, so basically 500 a cow in intrest and capital repayments a year, our in cent per litre terms 9-12 cent depending on cow yields, if he ever has to go for a mortgage on a house, start a family etc and pull a good weekly wage out of the place in a year like this year he'll be under savage pressure
About 200 acres that would be mixed, any time I’ve talked to him he maintains he’ll never milk over 100 milking 70 this year will have the 100 next year with heifers he has bought.
Are the caps not a bit higher now? 90k maybe?
(Presuming there is still a 60% rate for young qualified and he is qualified)
Perhaps there are also tax reasons if the parents had a big ball of cash and want to put that into assets to pass it on.
Sounds like he might have the landbase to expand, even with existing restrictions.
Still is that really justified for that number of cows? Genuinely
Partnership with parents and €80k tams refunded too maybe.
Round roof cubicle shed with lean-to’s and automatic scrapers into an easy feed slatted tank and old 8 unit parlour and the usual hay barns old stone buildings you’d find in most yards for calving and calves. Now has state of the art 20 unit parlour room for 24, new calving shed, new calf shed with automatic feeders and 125 cubicle shed. No expense spared a lot of galvanized pillars in sheds etc.
What was there before might have an impact too. The previous setup might have been struggling with the 60 cows. The 60 could have been 30 or 40 before quotas were lifted.
Might have been an old small 4-unit parlour and old sheds etc. Straw bedded, stone floors....just waiting for an inspector to drop in
