Farm partnership

Rover198

first time poster go easy..

Currently have a small calf to beef farm buying in 50-60 calves a year. One block of land. Maxed stocking rate without going into derogation.

Over drink over the weekend me and friend discussed potential of partnering, only talk but would like opinion on it.

He has approx 50acres 45 min drive from me. He currently has cattle on it but also 45 minute drive from him and is considering getting out of stock due to distance etc.

What would ye think if he grew beet/barely on his land to use for finishing cattle on mine. I would have access to his maps and potential to get expand. Maybe buying in more cattle for winter finishing.

We compliment each other nicely, he’s mechanic by trade, very handy in general. I’m good at records, stock management.

Both working full time.

funkey_monkey

How is your own business going at the minute? Are you making anything at the calf to beef or are you happy doing as you are?

For the other fella, does he have any pull to that specific land block - presume it is inherited, does he not want to sell it for something closer? Is it suitable for barley and crops?

Rover198

going reasonable, happy enough with the system as a whole but feel limited in any growth without access to more land/maps.

Ua inheritaned land, not willing to sell maybe rent it out and rent somewhere closer if it arose. Some wet and some hilly parts only suited grazing.

Fine Day

Keep friendship and business separate. Daft idea. Stick to your own bit. Growing crops is no walk in the park. You have to know what you are doing and if you are paying someone to do the work then you are at a money loss. You are working full time already. Why do you want to add to your work load particularly in the winter chopping and rolling barley. Have you a wife/family?? Life is not all about working either you have to enjoy living too.

Deub

Do a napkin cost calculation of what would be his inputs, what would be his outputs and the same for you.

As another poster said, also includes the extra work that would be needed to make it work.

Friendship and business don’t usually go together. What would happen if it was a bad year for his crops but a good year for you or vice versa?

KAMG

From an accountants point of view, I wouldn't be a fan of friends going into a partnership. I have seen it many times over the years and seldom has it worked out well.

Rover198

all good points. More I think about it the worse the idea becomes.