No local branch near me
Why would I lose it - resigned 3 blocks this year for 7 years- all well below 250 acre
Maybe it's time I relooked at land purchase.i was just wondering how you handled the finance side of thing s .is it through bridging or savings because you ve just said you have very little debt.also you were very lucky to have so much land come for sale convient to you without travelling big distances.my problem is any land that comes for sale locally is being bought up by non farmer so you were equally lucky that your area didn't attract that type of interest.you really hit the the jack pot.cheap land,nearby,little borrowing,and very little outside interest or locall interest for that matter.in those type of circumstances who wouldn't buy
Fair point but we don’t have any extra labour so that’s senario is irrelevant for our circumstances
but defo if renting extra land and taking on extra labour to do so is pointless- but so would buying extra land and taking on extra labour
I bought two houses off receivers. Its a normal business transaction where those that over borrow/extend and fail to make loan repayments suffer the conquences. If it dose not happen and banks fails to recover non preforming loans then its gets harder to borrow money and we suffer higher interest rates.
Farmers have no problem buying repossessed cars, diggers, track machines, trailers etc what is special about tractors or land.
If it look at the cast majority of cases it was bad business decision making tgat caused the problem. I had upwards of half a million borrowed at one stage it all got paid back. It was not easy from 2008 th 2012 it was tough going but you make decisions to work through it.
People who buy land are those that look longer term business decisions. The numbers are not that much different to leasing if you look at it long-term.
Take a lease at 400/ acre or land at 14k/ acre Inc stamp duty through a company structure. Most buyers will have build up a cash reserve of retained profits.
40 acres leased at 400/year cost 16k/ year in a company structure the tax benefits are 12.5% or 2k/ year on that bill. However in 20 years time that rental will probably have increased by 50% (An approximate rise of 2%/ year compounded) so when the borrower has probably paid off the loan the lessor is facing continual costs of 24k/ year.
Now I am assuming the buyers has retained profits of 160k ( even if the money is outside the company structure he can put it in and remove it again tax efficiently simililar with repayments) so he borrows 400k@5% average over 20 years repayments are approx 30k/ year.
In the first year the company tax rate make net payments after tax of about 27500.
The difference in repayments V leasing is about 13-14 k in a company structure dropping to about 8k by year 15 and a positive cash flow of 24k in year 21 along with any capital increase land value. Tge capital increase will probably more than cover the business value of the 160k in equity orginally invested assuming the land increases in value by 2-3% a year.
You also have to factor in any investment in the land is totally recouped which with leased land may not be the case
Nothing wrong with leasing either if tge numbers are right however at a 3% leasing V buying if I had the capital reserves to buy I perfer to buy.
Im asking a question but u wont answer i asked IF you lose it your all your rented ground.
pot kettle black comes to mind
land is either poor or your getting no maps... or the land owner is a simpleton or he/she has severe dementia.. which is it...??
A good tenant is worth more than a massive rent, between 200 and 250 and keeping theyre sfp and a tenant minding and improving the land is worth an awful lot.
I’ve replied loads of time- I won’t lose it as I have all leases in long term
None of the above- everyone is talking this high rent that was in the journal last year
but I don’t know anybody paying huge money over 300 acre or is it just the area that I’m in where rent is controlled by tillage farmers
Jesus you won't like ginger get away with anything.
If you lose it please answer the question
Money talk lad if u were leasing out 100 acres at 200 v 400 that 20k per year difference to landlord.Alot of landlords are elderly and with inflation you cant blame them for looking for high rent they c dairy farmers with big tractors jeep just remember there wasa serious amount of sheep beef farmers put off land by dairy famer since 2015
What was that snotty remark about.
I see you choose not to bother answering the only question I asked you gas man, all you want to say is dairy farmers greedy renting blah blah blah to every single post anyone puts up about anything clear as day you aren’t related to a dairy farmer
Over 500 given by spud man beside me Stan. 7 Yr lease.
2 dairy men given over 400 for 100 plus blocks aswell. One will be milked on, the other won't. I was doubting the big rents being quoted but they are being paid rightly or otherwise
If I lose it I look for other ground- simple
Leases also carry a 2 year notification of end of tenancy
On a different note- since switching to lower ebi bulls I’m consistently getting higher ebi calves
Many a farmer left cork and moved up the country for cheaper land like you say. MC milking it has a YouTube video of the farm history. They're from Cork originally, made the move to Tipp. Absolutely disastrous move really but they could never have bought such land with their budget in cork.
Or there d be nothing wrong with downsizing abit every now and again too.also you can strategically manage your possible exits from blocks.it does seem people seem to have a mental block about renting.it does require a certain mindset much like retail where you have to look after your customers.
Thats not my question it looks like ur not going to answer yud make a gd politican
And if u cant find other ground then what
56% reliability
But ground is readily available around here
what question am I not answering to say I’m like a politician
That’s genomics for you and what’s worse is that he is a proven bull
Why was it a disaster? Don't know the man but seems to be tipping away alright?
Where do u farm cus ground countrywide is very scarce where is all this cheap readily available land for rent located.
Leaving cork for tipp like. Serious backwards move. That's the price you pay for cheap land
