Should I Invest in Farm Management as lots of people earning through this?
How many cows we need to start for that and managing a farm is good or going for dairy production would be more better?
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Investing in Farm Management?
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- Lemon Quarter
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Re: Investing in Farm Management?
HBEN wrote:Should I Invest in Farm Management as lots of people earning through this?
How many cows we need to start for that and managing a farm is good or going for dairy production would be more better?
What do you guys suggest?
Although I trained in farm management I'm somewhat out of date...
Farmland ownership has advantages for those seeking to avoid IHT but otherwise:
Over the past 100 years average England farmland values have returned 6 per cent per annum. In real terms, this equates to just over 1 per cent compound annual growth rate over the same period.
https://www.savills.co.uk/property-valu ... alues.aspx
Farmland costs between £5 000-10 000 per acre, or roughly £12 000-25 000 per Ha (from previous link).
Since Brexit, the outlook is very unclear for farming in the UK due to changes in subsidies and incentives.
If you are considering dairy production then a herd size of 250 would provide sufficient scale for profitability, depending on the above. It might be worth considering adding value by turning milk into cheese but that requires more time and investment, labour, marketing etc. 250 dairy cattle would need approximately 100 Ha of land depending on land and management techniques. Each dairy cow would cost approximately £1500 for Holstein \ Friesian crosses:
https://ahdb.org.uk/dairy-cattle-rearing-calf-prices
So land and cattle would be perhaps £2.5M then you would need accommodation and equipment etc.
Can't advise on beef production as so much seems to depend on relatively short-term changes in feed costs and post-Brexit imports, the import of beef from Australia has been in the news recently.
Unless you are really dedicated there must be easier ways to make money.
RC
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- Lemon Slice
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Re: Investing in Farm Management?
Unless you are really dedicated there must be easier ways to make money
This sums it up pretty well
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- Lemon Quarter
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Re: Investing in Farm Management?
HBEN wrote:
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I had a look at the software in your link.
As an animal care specialist, your maintenance objectives are simple and clear. You want to make your workers more agile and your maintenance teams more productive while reducing overhead costs.
And the examples shown on the app:
Clean Barns
Service Tractor
Delivery Truck Service
In real life:
- Clean up the aftermath from last-night's lambing before the dog gets it
- Check the fuel gauge on the tractor
- Kick the tyres on the van
RC
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- Lemon Quarter
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Re: Investing in Farm Management?
ReformedCharacter wrote:Farmland ownership has advantages for those seeking to avoid IHT but otherwise:Over the past 100 years average England farmland values have returned 6 per cent per annum. In real terms, this equates to just over 1 per cent compound annual growth rate over the same period.
https://www.savills.co.uk/property-valu ... alues.aspx
For some perspective over the last 100 years house prices have increased 6.3%, share prices 5.1% per annum, again nominal.
Include imputed rent benefit, or stock dividends, or dividends from working a farm and there lays the real (after inflation) gains.
Buy a gold bar and use it as a doorstop and again a similar 5.75% per annum. Trade gold, perhaps using some to buy stocks in 1980 when the Dow/Gold ratio was down at near 1.0 levels, sell back into gold in the last 1990's when the Dow/Gold was up at 40 levels and therein lays the real gains.
Some like dividends being fed to them at times and to amounts dictated by others. Some like being both landlord and tenant, not having to find/pay rent to others. Some look to yield dividends from volatility trading such as Options traders or gold merchants. Farmers ... like to be out-standing in their own field
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- Lemon Quarter
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Re: Investing in Farm Management?
My s-i-l gave her grandchildren a few £k to invest last May.
Child 1 aged 12 bought some shares.
Child 2 was aged 19 and supposedly going on placement year to NZ from agricultural college, but Covid stopped that idea. She bought 6 cows and spent lockdown on her boyfriends family farm.
So far the return on the cows is higher (50%) but that doesn't include patform fees.
Living in rural Shropshire now, I must say there are a LOT easier ways to make a living than farming, unless you run a company that outsources the grubby bits.
Paul
Child 1 aged 12 bought some shares.
Child 2 was aged 19 and supposedly going on placement year to NZ from agricultural college, but Covid stopped that idea. She bought 6 cows and spent lockdown on her boyfriends family farm.
So far the return on the cows is higher (50%) but that doesn't include patform fees.
Living in rural Shropshire now, I must say there are a LOT easier ways to make a living than farming, unless you run a company that outsources the grubby bits.
Paul
Re: Investing in Farm Management?
The in-laws have a small dairy farm.
The semi derelict sort clinging to a hillside and family history.
Just no.
W.
The semi derelict sort clinging to a hillside and family history.
Just no.
W.
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- Lemon Half
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Re: Investing in Farm Management?
The OP posted an external link to a software package that's subsequently been removed, after not being active on the board for about 18 months, and having had a long history of promoting similar external links in their very sporadic history on this site...
The removal of that original URL promotion has not been specifically highlighted, but I thought it worth mentioning so that people can perhaps make informed decisions on any merits of engagement...
Cheers,
Itsallaguess
The removal of that original URL promotion has not been specifically highlighted, but I thought it worth mentioning so that people can perhaps make informed decisions on any merits of engagement...
Cheers,
Itsallaguess
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- Lemon Quarter
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Re: Investing in Farm Management?
It's mainly a way of spending the money when you have made loads of it by other means (Cheers Mr Dyson!) and hoping for an eventual IHT saving. The only other way to make significant money from farm management is to build a housing estate on it!
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