Dairy Chitchat 4, an udder new thread.

Should have given it to the dealer be some craic after a couple of years 😀

I disagree

im paying more than that for land and capital repayments every year. That farm will build alot of cash for the guy leasing it

it’s the usual case of those that can’t won’t and those that can do

One year though MJ

you have to look at it in the length of the lease

Aware of that but too many lads lost the run of themselves last year and are going to overextend themselves this year to continue only with nitrates just so they won’t have to milk less cows etc …..lads got greedy because they bought into the hype …….Tegasc and a lot of so called advisors have gotten away very lightly amidst all this nitrates /dero /banding crap …..they with a very blinkered view tried to copy and paste a kiwi system into here since quotas went….load on the cows ..worry about everything else down the road …just get the cow in calf ,calve early to easy calving short gestation bulls and leave beef man worry about calves ….this advice and more has is where we are

It's fine to go farming in your 40's if your semi-retired. On the other hand if you've a family to look after and develop a farm that has been run down at the same time it's a different story.

you will own your land when your finished paying for it...... the young man renting this farm wont.. like anyone renting a farm you dont know when landowner will issue you with your P45... i cannot get my head around paying out nearly 1million quid in rent over 10 yrs and may have to walk away from farm if the landowners son who is a teenager wants to go farming... i would much prefer to do like you and buy the land.... at least your not reseeding it building up soil fertility fencing it etc etc for someone else...

The problem with trying to buy land at present is schemes bought in to support the dairy industry are making it unviable for many.

Get rid of tax relief on leasing, inheritance relief related to farming and limit the ability to buy farmland within a company setup (I am not sure how you would manage that maybe a substantially higher stamp duty) and the price of land in dairy area would half

Too many established dairy farmers with cash stashed in companies and a bit of land come up locally and all they see is that the money used to purchase it is money they might have to pay tax on if the pay it out as a dividend.

Tax free leasing is another land inflationary tool. First cousin of my better half bought land lately in a strong dairy area in the south east. He had a small farm already which allowed him to access tax free leasing. He plans on leasing the land he purchased for five years at least.

Look at the leasing rules in regarding to inheritance as well. If you inherit land and will have an inheritance tax bill the way around is to lease it put for is it 10 years. If you do not need the money after ten years you can sell it on and only pay tax on any increasing value. Business people are buying land to leave to inheritors as a way of avoiding a tax bill. I think you access the increased inheritance allowance as well

You could have been waiting another 30 years for that bit next door to come up for sale you’ll be glad of the outfarm. How many around the country are waiting their whole lives for that bit over the ditch that will never come up or be swept away from them when it does.

Just something to keep in mind.... I think you mentioned recently you were considering going Ltd Company? You should consider doing that before buying the land as if you buy it in your own name, then form a company, the repayments will be classed as money coming from your company to cover a private debt and will deplete your directors loan account.

If there is a margin in it at that like you say to build up a position to purchase land would these fellas not be better off going from it from day one. Know of a local multi unit guy paid 400 per acre this year for a 160 acre farm with sfp paid back surely you’d be better off trying to buy a place at that money if as you say there’s still a margin at that outlay?

Current interest rates at circa 6% on secured borrowing, for a 2 million euro 160 acre dairy farm, you'll be paying 120k a year in interest alone year one , and another 100k in principal repayments on a 20 year term...

Unless daddy has a war chest to back his son/daughter of a couple of hundred of a deposit to finance the above you'll be laughed out of the bank trying to get a loan for the above

High prices cure high prices.

The number of farms coming on the market now isn't sustainable.

In the 1980s I saw farms being sold two or three times in the decade, starting at 3000/acre early in the decade down to 1000/acre for the sameland at the end of the decade.

My leases finish 2026/27 and I'd be very suprised if the same demand is around then,

If there is I'll be very tempted

Either way if you have backing you’re talking mid 50s by the time you have it paid off if in mid 20s when taking it on and if you’ve no backing you’re talking retirement age before you’d have it paid back by leasing a farm for 10 years forst to build up cash reserves as people have suggested here. Get to retirement age in both cases your whole working life would have been spent with no disposable income granted you’d have an asset built up at the end but then no guarantee it would be carried on after that. But each to their own…

Or indeed you could go to France. www.quatour-transactions.com

I’d never in a million years go farming out in Australia or NZ. I’ll have 3 years of experience built up in the MNC I’m in at the end of next year relevant to my degree. Im in the process of being approved for mortgage on farmhouse on outfarm, lucky to have parents who will put collateral against it but deposit and payments will be all coming from me. Once that is complete I will go to Australia for a year or two. My first cousin is manager in a quarry north of Perth so I would have work there straight away, I’d try to build up as much as saving as possible out there and when I come home I will either go back to working as an engineer in the house or continue to let it out and go farming on the home farm. That house would be what I plan on disposing of if I ever wanted to buy land it was appraised 3 times the value of the mortgage I’m applying for once work will be completed. Very lucky it’s in an extremely sought after suburb.

I have a first cousin. Herself and the fella bought a suckler farm in France. They're out there a few years now. Running limousins. Hard work and the neighbours can be interesting. But between here and there. Out there does allow you to buy a lot more land for your euro. Usually on farms too over there there can be accommodation besides the main house for guests,workers.

You'd really want to like farming though with the undertaking and change.

Fair play to them, farming at la forge on YouTube have made a good go at it too out in France since moving over. Saying that it’s a totally different culture and you’d really want to love farming and something tells me there might not be a whole pile to do outside of farming if you were to make such a change of scenery. Horses for courses.

Could it be forestry. Amazed that our area of north Kerry is out, one of the most intensive dairy areas in the country.

Could be maybe.

Own feeling is they were told draw up a map that gets the 220 across the line and accepted by the farming unions.

For all the talk of farming representation on this forum this map to me says officialdom still takes reactions of farm unions into play.

There's no science to me in the map just a way of getting 220 accepted.

It looked good too to show European ministers who'd be clueless.

Nothing to do with me

Supplying Dublin drinking water to the likes of Leo and cabbage head Ryan. No other reason

France looking more attractive to buy to farm.

C'mon lads we can do it. We'll name it Ireland with grapes.

Spreading slurry in wrong conditions is a symptom of a shortage of storage.