Intrest rates re big investments are what's killing the thing, running through a few ideas this morning re a project that I had in my head, and when you realise 100k over 10 years will be costing you 33-38k at an intrest rate between 6 and 7% it really takes the gloss of any big capital expenditure
Teagasc sent a letter today looking for 160euro to do a nutrient management plan. I got one done last year, so that should do. They took 100 last year for Acre's, that's going to be an annual event now that I wasn't told about. Even though they got paid well to do the plan. I give them 350 every year for the contract.
They are getting a bit hungry. ?
Fire out the protected urea now in the snow. Badly needed. What could possibly go wrong
Not really,if they do extra work they should get paid. The big problem is we're not getting paid what we should. Everyone else is upping their bills . Ie contractors etc and our milk price and bank accounts were going in the opposite direction. When this happens and bills bigger than you expect come in the front door it naturally pisses people off
Whatever about the concrete, nitrates and set aside, the organic and forestry is done mostly by farmers is it not, for the money?
What are you rambling about ......make sentences out of your jumble of words please.
The girlfriend mentioned to me about a massive dairy farm for sale in the county for a load of money.
I don't know any of the parties involved at all but with no residence on the farm and @12k per acre with a very small existing parlour then it only makes sense to a neghbour in reality?
I don't know the girl, but are you not a bitteen worried that your girlfriend is checking out local land prices
The buildings are of course better than no buildings at all but IMHO a person would be better off buying a similar amount of land with no buildings on it and being able to start from scratch. A 10 unit parlour is pretty obsolete by today’s standards and as you mentioned there’s no house on it.
I saw this farm for sale lately, a smashing farm altogether. I think they were looking for about €3 million for it https://www.property.ie/commercial-property/Moymet-Dunderry-Co-Meath/18553546/
Apologies.
Kev seemed to be saying that forestry incentives and organic payments are costing farmers.
I however would suggest that farmers who avail of these schemes would be all the richer for it.
Now looking back at the post and realising I am in the dairy thread, what he probably meant was it is costing dairy farmers.
Sounds like the start of a multi unit dairy marriage made in heaven🤣
https://www.youtube.com/watch?v=j6kGUv6Cl-Q&list=PLUpCUR75vVRWlWjNpq8OSCY7RSI9oq0MY
New calf shed by Colm O'Leary.... his Mammy has a column in the comic every week.... no expense spared here either
10 unit parlour is obsolete. Jesus is there any hope at all I wonder....
Not richer at all, in the case of forestry they would be just devaluing their land and basically selling it off at a huge discount and organics is just a dead loss..
just watched a bit of the greenlawn sale with taaffe on livestock live some fancy money been payed but some very classy looking stock on display fair play to the two lads Involved
Savage cows but their use of mogul/mogul sons still in their breeding programs, is madness, he throws lovely vg/ex stock but his daughters have really bad scc issues simply don't last
I would be thinking that this might be a part of a clearance sale the numbers are big for a family type farm them lads late father was a great dairy man died in a freak accident few years back
Drop 2/3 million on a farm and then sink another million into a yard you’d know it was a Kerry man you’re dealing with….
Well the guide price for that farm was €2 million. After paying that much they’d want to be milking 140 cows or so anyway to get a return on their investment. Don’t think many places have 14 rounds of cows coming into their parlour anymore. I see second hand good sized parlours for sale on DoneDeal from time to time and they’re very affordable
Wouldn't fancy paying back 2 million from cows
Big difference between 2&3 million. Below are the daft adverts for both farms
Other than the milking parlour the there is slatted cubicles for 150 cows, another slatted unit and an overground tank admittedly probably a bit dated.Hard to know there repair but they are there. It looks like it needs to be paddocked, a roadway and water to some extent as well. Land is unlikely to be anywhere as good as Meath. Extend the milking parlour to 20 either with a second hand unit or use the grant for a new one. A father and son ( young trained farmer) in a partnership woukd have 180k+vat to spend on infrastructure costing about 50k net. A herd of cows and it turning money straight away
However establishing a dairy operation on a greenfield site is a totally different ballgame. Ya everything will be spanking new, but beteween sheds, parlour, roadways fencing and water you would be looking at another million ++
With the Monoghan farm assuming it was 2million+ SD if you had half that and another 300k, borrowing a million for it might be doable.
The meath farm at million +SD would require you to have most of the price of it up front with thìe amount of infrastructure it needs and it would be 12+ months before you are turning money
Added the difficulty getting planning on a green field site. A neighbour took on a farm and it took a year and a half because of some objector 50 miles away
I wonder would someone be able to make much money out of the 249 acre Meath farm if they just ran it as a drystock farm and fattened cattle on it?
if a guy borrowed a million euro to set up a dairy unit on it I think he’d have his fair share of sleepless nights trying to pay the money back!
You would still needs sheds and paddocks, possibly a roadway on part of it. Again grant would only cover part of it. The Monoghan farm would be preferable again with its sheds. With the cubicles and an milking parlour, cull cows would be a real option. Could you turn 50 culls a month out of the Monoghan farm.
If you had 1.4million it might stack up, borrowing a million paying back 75-80k/ year over 20 years.
Not a chance of milking cows paying for those farms unless there's a considerable other operation helping to pay for it or a serious kitty built up during the good years.the glory days in cows are gone.its road or development money or non farmer will the meath one
Grants are gone for milking equipment over 100 cows now anyway, which is worse overall as there still being a grant there for some means prices will still be higher than they should be
I agree 100% with you. I suppose the thing is that land is such a good way to pass on wealth to the next generation and a lot of wealthy people just buy it for avoiding inheritance tax for their children. If land was only being paid for out of farm profits exclusively there wouldn’t be many places selling for €10K/acre
Just to give an idea of how dairy income has changed.
Load of ready-mixed our way today is 1350 euro including elevater.in 2017 it was 650
I remember getting over 200 pounds for fr bull calves.now I could sell 40 for 1000 euro
You could make a nice twist on a few culls one time if you fleshed them .now with stocking rate you re letting them off into a flush autumn market with very little value.
A drum of round up was always 60 to 100 euro now it's over 200
The winter dry off vacs and doses is running to nearly 50 euro a cow now.one time it was just 4 tubes and a dose
Tagging and testing calves and associated hassle.
Repairs and maintenance. Before a 1000 euro would get alot of repairs and maintenance to equipment,now every bill seems to be 5k
Nevermind fertiliser and ration basically doubling.to a certain extent milk price has risen to equal these buy it's all the extras eating into income and possible repayment capacity which has changed the scene on what was possible 10 or 20 years ago
One way or another I think it's nearly all non farming money around here that's invested in land. As you say kg the good days are gone
Sleepless nights and long days. From what comes up on my Google feeds, it is business men that are investing spare money that are buying up a lot of land.
I know it's a lot of money at 40c a litre, but it's only one or two houses in the right district of a city. Or for a farmer with a few hovels over looking the sea down here.
A million ain't what it used to be unless you are working for it
