The dairy boom.Can we officially say its over

On the 60 cow set up..... Here's my story for what it's worth.

Quit the job 6 years ago. Paid my parents 130k for 65 cows plus replacements. Borrowed it, but had no mortgage or other borrowings apart from buy to let's which kinda look after themselves financially speaking. My parents had alot of the heavy lifting done here, modern parlour, facilities and most roadways. Bit by bit I spent about 100k out of cashflow on more slurry storage, silage pit, calf house, calf feeder. Got 60% grant being a young farmer. Also spent about 100k out of cashflow on tractor, mower, tank, agitator, bale handler, fertiliser spinner and a few other bits and pieces. Upgraded water troughs and piping, extended and added more roadways while working on building up soil fertility. Actively reseeding now and the place is well set up. Got the place right within 5 years and debt paid off too. Took last year's profits and bought 13 Ha to protect myself from the nitrates regs. It's costing me 18k per year now in repayments for 20 years and they are my only repayments. Milking 80 cows currently and will probably let them build up to 90ish.

Biggest problem with the dairying is how tied you are to it but that's my own weakness. I enjoy it in general and get to spend plenty time with the children. Couldn't imagine going back to the job now and missing for 10 hours a day.

My advice to people has always been milk cows if you like the lifestyle but don't do it for the money and I'd give the same advice to someone thinking of any other career I guess. I've no interest in going over 100 cows and will be investing further profits outside the farm gate with an eye to hanging up the clusters at 60ish. Life is short as they say.

Welllllll interesting is right 😄😄😉😉👍

The sense of entitlement is amazing.

An inflation/cost of living crises and they're going to pay out big money to make food more expensive? Hard to see how that would pass.

If dairy farmers never have to go through a downturn without the taxpayer bailing them out, how will they ever learn not to make stupid decisions like borrowing heavily to milk cows or bidding up the price of land?

Sweet Jesus christ 🙄

Directors loans are usually the result of transferring assets into the company at startup. Therefore such a company would have assets. One of the major reasons behind migration to a company structure was also to purchase land. Lots of farmers would have done it for that reason.

If a debt is not paid by a company, the person owed money can petition to have it wound up. If the company is loss making and not worth anything then the owners can walk away with no personal liability. That's a fair bit away from someone overpaying for an extra 10 acres.

It would be more difficult to do what you are saying in a typical, say. large dairy farm. If assets are siphoned off to defraud creditors, then the directors can be sued and held liable too.

480 for 22 acres in conacre and you can do nothing with 2.5 acres of it

At least you are not locked into it

Just to add that the directors are ob the hook for everything anymore no such thing as a free lunch anymore

The facts are that your away with the fairy's. 😉🤔🤔

In farming( well in any attempt to move to an LTD structure) directors loans are really attempt as much as possible to unused capital allowances into the company structure so they can be drawn down in future in the form of tax free income. You do not want to leave unused allowances behind you. It often creates a search for rusty equipment or scrap that can be given a value above it real worth.

This creates a significant tax free sum that can be drawn down without paying tax on it at a future date. The movement to LTD structure have different functions. In many situations it's to limit the liability of the directors or investors as there may be significant risk and upside in the investment.

In a farming or small business situation the company structure is really to solve a long-term tax liability and maybe allow long-term investment. However it's important to remember any investments ( especially land or houses) are not yours

A business man I know considered the option but on further investigation decided against it even though his accountant was advising different.

Another stupid reply. I will take it that you agree with me as for the second time you have failed to supply an explanation

Back in 2005 Roadstone would not sell lime to a LTD Company even though the directors were doing business with them for years before incorporating .

Previous personal dealings with directors is irrelevant. The limited company has separate legal personality. Selling to the director is not the same as selling to the company of which the person is a director.

Try gluten free oats. Might not be the milk

I understand that but normally a LTD Company is formed by people whose profits are high. I'm sure that the likes of Roadstone are dealing with many companies for supply of parts etc . I presume their policy has changed by now otherwise they would loose lot of business