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?
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Accountant wanting to start his own herd
- Thread starter JFHJ
- Start date
- Location
- South Wales UK
All the best but Accountant mega money compared any day and less work ,weekends off and plenty of holidays with top car and big house.
Are around here anyhow !
Are around here anyhow !
- Location
- Ceredigion
I think if you asked mist dairy farms today they would say dont do it , modern day slavery
- Location
- South Wales UK
Showing hobby maybe.
Inland Revenue got different approach to "hobby farmers",and as accountant should know ???
- Location
- Scottish Highlands
£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?
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?
kfpben
Member
- Location
- Mid Hampshire
£25k/acre for land? Where do you live!?
- Location
- South Wales UK
Silicon valley maybe ?
- Location
- Sedgefield
I'd sell you some grazing for £25k/acre !!! How much do you want
- 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.
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.
wasted years
Member
- Location
- Cumbrian born and bread
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.
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 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.
renewablejohn
Member
- Location
- lancs
Need to have at least 5 hectares otherwise you will have HMRC on your back.
- Location
- Somerset
Not the case as far as I'm aware, is the limit for BPS and 28 day planning though.
renewablejohn
Member
- Location
- lancs
Been there done that had the HMRC tribunal which we won even with more than 5 hectares it was not easy.
What exactly were HMRC trying to tax you on that only applied to holdings of less than 5Ha?
renewablejohn
Member
- Location
- lancs
Trying to make out we are hobby farmers therefore not allowed to offsett farm losses against other earned income.
New Puritan
Member
- Location
- East Sussex
This is interesting. It's prompted me to dig about a bit, and I found this: https://www.taxation.co.uk/Articles/2016/07/05/335019/restricted-losses.
Clayfarmer
Member
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.
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.