• Welcome to The Farming Forum!

    As part of this update, we have made a change to the login and registration process. If you are experiences any problems, please email [email protected] with the details so we can resolve any issues.

Accountant wanting to start his own herd

JFHJ

New Member
I am not in the current business of farming (age 23, currently a part qualified accountant), however, I spent most of my youth around farms and I always wanted to start my own farm whether it only be part-time. I am considering starting my own herd. My plan would be to buy 8 acres (Decent land around here is around £25,000 an acre) and buying 8 shorthorn cows and use AI. The reason for 8 cows is because I would need them to graze all year round with a steel framed shelter for the winter period. I would like the herd to be as efficient as possible, and to mainly cover the costs of the mortgage for the land which would be around £3,700/y. If all went well I would grow the herd along with the increased purchase of land. As I have a full time job I wouldn't be taking any kind of salary from the herd. The reason for this post is to find out what others peoples opinions on this would be?
 

Highland Mule

Member
Livestock Farmer
£3700 would be after tax, so the cattle would need to have a profit of around £1/head-year. No way they will achieve that, I'm afraid. You will be able to offset the losses against other income for a while, but would eventually need to make and declare a profit, which would probably involve burning some invoices.

Also, what about calving? You will need to be in attendance for a load of time around then, which may impact on your own work/ earning potential.

£25k/acre seems very high too - not sustainable from agriculture, but may be okay as a tax shelter/ investment, if land prices keep rising. Why not take your transferrable skills to a less expensive part of the country, that is more suited to rearing cattle?
 

farmerdan7618

Member
Livestock Farmer
Location
Somerset
You are in a very similar position to myself, currently an accountant on my way to being qualified, and also having a passion for farming, and having grown up with it.
Granted not all accountants specialise in agriculture, so the profitability and tax treatment may not be familiar to some, and in reality may not matter to you, but I would hope you could prepare a budget for your venture.
If you want to do this as a hobby, it may not stack up financially, and again may not matter. If you can afford the expenses from other income and enjoy what you are doing, there are far worse things to blow half your salary on. In this case, have a go and don't be afraid to ask for advice and assistance along the way, or to pay for it when needed.
If you want to work this as a self-sustaining business, you will need something extra to make this work with cows on 8 acres. Direct sales of high end products, with traceability and a 'story' of what you do, top end genetics with a passion for a particular breed and an eye for what farmers want, small farm/tourist attraction - all ways that it could be made to work, but you will need to put a LOT of effort into it.
If you want a tax-loss, yes, there are many reliefs available to agriculture, look closely into 'Hobby farming rules' and make sure you stay on the right side of the legislation.
As for £25k land, if you are not in the UK, some of the above post may be useless to you, but hopefully not all.
Most importantly, agriculture is a great industry, with some fantastic people. So don't be afraid to get involved if you can, I know I will be making a huge effort to get back into it later in life.
 
I am not in the current business of farming (age 23, currently a part qualified accountant), however, I spent most of my youth around farms and I always wanted to start my own farm whether it only be part-time. I am considering starting my own herd. My plan would be to buy 8 acres (Decent land around here is around £25,000 an acre) and buying 8 shorthorn cows and use AI. The reason for 8 cows is because I would need them to graze all year round with a steel framed shelter for the winter period. I would like the herd to be as efficient as possible, and to mainly cover the costs of the mortgage for the land which would be around £3,700/y. If all went well I would grow the herd along with the increased purchase of land. As I have a full time job I wouldn't be taking any kind of salary from the herd. The reason for this post is to find out what others peoples opinions on this would be?
My opinion is that you will have abetter chance of farming by doing what are thinking of doing than going for a rented farm, not working as an accountant and relying on a short length FBT.
Good luck, go for it.
 

Doc

Member
Livestock Farmer
I imagine a few on here started out as you are thinking. 8ac isn’t much and would have to be dry to accommodate 8 cows plus followers over winter. You will need conserved feed and some bedding to see you through winter and to avoid wrecking your grazing for summer.
I would look to rent more acres for mowing/baleing as well as providing alternative grazing. It doesn’t have to be next door, but then you need transport.
Someone local may also winter them for you inside, but obviously at a price.
I would approach it as a hobby you want to develop into a business rather than a business you find is an expensive hobby.
Good luck, have fun but don’t give up the day job. You can do both.
 
I think you are on the right track, you will get to farm in your own right.

The tricky bit in farming is making a full time income from it, and you will find it a massive advantage not having to take an income from it.....

I understand that the average horse costs £4000 - £10000 a year to keep so you will be able to keep quite a few cattle for that.

£25k an acre seems steep even for a small acreage. Unless it is especially convenient or has genuine alternative use potential etc, you might be better off finding somewhere else slightly out of the way.
 

JFHJ

New Member
I am sorry for saying that the ground around here is £25,000. When I was typing, I for some reason had that figure in my head, embarrassing. The ground around here is around the £12,500 mark.
 

How is your SFI 24 application progressing?

  • havn't been invited to apply

    Votes: 28 35.9%
  • have been invited to apply

    Votes: 14 17.9%
  • applied but not yet accepted

    Votes: 28 35.9%
  • agreement up and running

    Votes: 8 10.3%

Webinar: Expanded Sustainable Farming Incentive offer 2024 -26th Sept

  • 2,410
  • 50
On Thursday 26th September, we’re holding a webinar for farmers to go through the guidance, actions and detail for the expanded Sustainable Farming Incentive (SFI) offer. This was planned for end of May, but had to be delayed due to the general election. We apologise about that.

Farming and Countryside Programme Director, Janet Hughes will be joined by policy leads working on SFI, and colleagues from the Rural Payment Agency and Catchment Sensitive Farming.

This webinar will be...
Back
Top