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Dairy Chitchat 4, an udder new thread.

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Comments

  • Registered Users, Registered Users 2 Posts: 3,289 ✭✭✭older by the day


    Yes you price the shiit out of everything and everyone that works for you,

    But don't be on about low cost systems in ireland, its a good spell since ireland waslow cost,

    TThis Time last year you were telling us that dairy farmers could produce milk for 20c/l, Jayus help me, for reading your posts in the dairy section, when you don’t have a clue

    It's no harm to protest against more regulations, especially if we are supposed to compete with south America and Australia.



  • Registered Users, Registered Users 2 Posts: 1,204 ✭✭✭daiymann 5


    But sure theres farmers on the boards of all these co ops who approve all that goes on so whats the story there.



  • Registered Users, Registered Users 2, Paid Member Posts: 22,614 ✭✭✭✭Bass Reeves


    The government are not going to solve 5 or 10k euro issues on your farm. Nobody is. The government's priority in the next budget is tax relief for all workers employed or selfemployed. Its going to swallow whatever funds are available.

    I had hoped there would be more put into the TAMS budget. Now I think that is unlikly. In I tbink it was 2023 budget there was a 4-5 year allocation for TAMS we have spend 70-80% of it between 2024&2025. So we are where we are.

    Micheal Healy Rae when he left the government was on about the rainy day fund and that it was pouring now. I got news for you what is happening now is only a light shower. The rain may be coming but its 12-18 months away.

    I run a business I look at my costs I control what I can control. No.point in cribbing about NZ, Australia or Brazil. I gave the point about the cost of production in relation to a question asked if I remember right of an owned farm on good land, with existing infrastructure and very little debt. I stand over what I said and have been told by PM that I was in the ball park figure for such a set up.

    Costs on poorer land, where there is rented ground and borrowing for new infrastructure would be different. If dairy farmers in places are willing to pay 500/acre for to rent land and even with derogation its near enough 10c/L for the extra milk it allows produced.

    Often lads are running around to stand still

    Post edited by Bass Reeves on

    Slava Ukrainii



  • Registered Users, Registered Users 2 Posts: 1,204 ✭✭✭daiymann 5


    You havent a clue of cost of production two costs alone silage and meal alone would be well above 20 cents per ltr.Then youve all ur other costs.1 tonne of meal 400 euro per cow .silage say two round bales a month at 40 euro x 6mth winter 480 .1000 euro per cow now esb labour running parlour tractors machinery slurry list goes on and on and on and on.



  • Registered Users, Registered Users 2, Paid Member Posts: 22,614 ✭✭✭✭Bass Reeves


    If dairy farmers watery bales are costing 40 a bale they would want to look at who they are paying what to. Made first cut here last year 40%DM 75× DMD it cost 32 euro a bale. If for the last 18 minths you were paying 400 a ton for ration you would want to bargain harder. Then again you might be believing the miller fable about the magic mushrooms he puts in it.

    The only way bales cost 40/ bale is if they come off rented ground and again as I stated that was not the question I answered

    Post edited by Bass Reeves on

    Slava Ukrainii



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  • Registered Users, Registered Users 2 Posts: 408 ✭✭Austinbrick


    I enjoy coming on to the dairy thread here. Plenty going on when other threads are quite. Also makes me feel like a dairy farmer without the bean of cows!!



  • Registered Users, Registered Users 2 Posts: 408 ✭✭Austinbrick


    Or ban of cows is it?



  • Registered Users, Registered Users 2 Posts: 1,104 ✭✭✭Sacrolyte


    Bawn



  • Registered Users, Registered Users 2 Posts: 1,431 ✭✭✭Dozer1


    Dairy must be going OK 2.6 million for a dairy farm locally 180 acres at auction best of luck to the purchaser



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  • Registered Users, Registered Users 2, Paid Member Posts: 22,614 ✭✭✭✭Bass Reeves


    With stamp duty and legal fees15500/ acre. Probably bought through a company with significant retained earnings that they could not figure how else to spend

    Slava Ukrainii



  • Registered Users, Registered Users 2 Posts: 879 ✭✭✭Pinsnbushings


    If it had residence and fully equipped parlour and sheds, I'd say it was good value if land was anyway decent quality. Building costs now are astronomical.

    Bare in mind any new semi d across the country are starting in or around 500k now. I know where is rather spend that money if I had it.



  • Registered Users, Registered Users 2 Posts: 12,286 ✭✭✭✭mahoney_j


    Jaysus you’ve an afull bee in your bonnet re dairy farmers …and ltd companies …more power to the purchaser and best of luck to them …pretty good way to spend a ball of money and better still if that person did it through a company …which was down to good tax planning etc



  • Registered Users, Registered Users 2, Paid Member Posts: 6,881 ✭✭✭straight




  • Registered Users, Registered Users 2 Posts: 9,025 ✭✭✭FintanMcluskey


    A local man who expanded a few years ago from 100 acres with dry stock to 300 or 400 acres and dairy cows to stock it, will openly say the dairy enterprise expansion is under a LTD company so the risk to his original set up is minimal should the venture not work.



  • Registered Users, Registered Users 2, Paid Member Posts: 6,881 ✭✭✭straight


    Sure that is what a limited company means. Limited by liability. Hardly anything new there.



  • Registered Users, Registered Users 2 Posts: 1,431 ✭✭✭Dozer1


    no buildings, just land, the house and old sheds were sold seperate, 2 large scale operators were renting it so I assume one of those purchased it, like I say more power to them.



  • Registered Users, Registered Users 2 Posts: 668 ✭✭✭Danny healy ray


    any ideas who the purchaser is ? north kerry farmer ??



  • Moderators, Society & Culture Moderators Posts: 3,851 Mod ✭✭✭✭K.G.


    When you see Johnny magnier putting on the milking apron in rockwell you know it's s millionaire s game.i believe he said hes sick of them old horses and there's no money in them



  • Registered Users, Registered Users 2, Paid Member Posts: 22,614 ✭✭✭✭Bass Reeves


    Yes straight but most farmers enter corporate structures to avoid tax through lower coporate tax and accelerated depreciation as directors loans that can be drawn out of the company in a shorter term. Few if any think beyond the tax issue.

    Its easiers innother business area to invest to get a return on retained profits. In farming for most unless involved in agri contracting/ plant hire or you set up another dairy unit its hard to find a business you are famar with that will return 10-20% to make investment worth your while especially if ypu are tied down milking cows twice a day 5-6 days a week 10 months of the year.

    You miss understand my point. I was talking to a plant hire/ operator that is running a successful business, he is in a company structure 20+years. He has expanded from a 3-4 employee operator to 20ish employees with probably a couple million tied up in machinery. He has a couple significant high profit contracts.

    He is now as he says planning his retirement structure mid 40's eldest child 12 years he is build up a cash fundbusing investment vehicles returning 6-10% a year. He has significant funds in a pension. He intends to draw a million plus from the company tax free ( spouse a directors as well), a pension fund planned to have a similar amount. His target is he will be semi retired at 60 and fully retires at 65.

    The big thing was he has an investment vehicle for the retained earning. Look around at the amout of small businesses that have used the structure for the last 15-30 years on this way.

    Most farmers go corporate to avoid tax with little else planned

    Slava Ukrainii



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  • Registered Users, Registered Users 2 Posts: 379 ✭✭The Rabbi




  • Registered Users, Registered Users 2 Posts: 7,675 ✭✭✭jaymla627


    Hes a sneering prick at the back of it, raving about his kiwi cows, when not giving the actual story, he done a video of the new owners of his kiwi farm ensiling maize on it, and the lunacy of it...

    When previous season he spent a fortune on bought-in feed as he was droughted out



  • Registered Users, Registered Users 2 Posts: 394 ✭✭ftm2023


    I had guessed myself it would make €3mn+… in my own humble opinion, it was great value at €2.6mn… here in North Kerry fellas would be falling out with one another to pay €20,000/acre for what most people on here would consider little better than forestry ground. Best of luck to the new owners.

    If I had a couple million burning a hole in my back pocket, it’s land I’d buy at this stage. Houses have tripled in value in the last 12/13 years (around here anyway) and farmland in areas like that farm that was sold at auction hasn’t increased by much at all



  • Registered Users, Registered Users 2, Paid Member Posts: 6,881 ✭✭✭straight


    Maybe you should liquidate or lever your houses to buy land. 🤔

    Are you going to the MDPO meeting about the contract?



  • Registered Users, Registered Users 2 Posts: 4,944 ✭✭✭GrasstoMilk


    he kept John gibbons farm in dairy. Guy that had it leased renewed the lease



  • Registered Users, Registered Users 2 Posts: 394 ✭✭ftm2023


    I’d be hoping to do a property deal with the non farming side of the family tree, it would have me fairly tied up for a good few years. Tbh with you, as a farm labourer myself I don’t have much of an incentive to buy land. I’d have to rent it out or probably lose money with dry cattle that I’d have to go out and buy 😂


    Will be in Tenerife when the meeting is going on, would go to it for curiosity sake otherwise. Have a few friends that are involved in it and I wish them the best but I think myself they’re flogging a dead horse. All I’ve to do is look at Newtownsandes next door to me. Nowhere to go with their milk now basically, have issued notice to terminate their contracts with North Cork, they’re looking to join Kerry



  • Registered Users, Registered Users 2, Paid Member Posts: 5,296 ✭✭✭White Clover




  • Registered Users, Registered Users 2, Paid Member Posts: 5,860 ✭✭✭bogman_bass


    you also require a licence for a bull but when have you ever heard of that being enforced either?



  • Registered Users, Registered Users 2, Paid Member Posts: 5,860 ✭✭✭bogman_bass


    https://www.irishstatutebook.ie/eli/1986/si/333/made/en/print



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  • Registered Users, Registered Users 2 Posts: 394 ✭✭ftm2023


    As far as I know they’re staying with North Cork? I haven’t been following it as much lately tbh. I did hear that Feale’s Bridge guys had handed over an average of €10,000 each to North Cork as a sort of “buy in”. Newtownsandes handed over €3.5m in cash to North Cork when they joined up, gave them whatever land they owned, gave them their co-op store. And bear in mind, Newtownsandes only had 60 milk suppliers — the €3.5m they gave away to North Cork was €60,000 each on average. Gone up in smoke



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