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All things Dairy

dinderleat

Member
Location
Wells
Within a few miles of me there are two types of farms. Those being driven by the next generation. And those where the next generation don't understand the finances want to drive the tractor all day and have no idea what's in the bank account.
The driven farms the son returned later in life the others they came home asap.

The next step is to expect more of our daughters to take up the baton because they have the skillset and not just sons.
I Came home at 19 after college as we took on another farm. I’m fairly driven I’d like to think and very much the driving force with in the business as it my future that it will make a difference too.
I wouldn’t make sweeping remarks based on your experiences. In our area there’s some fair businesses in a similar situation to mine.
 

frederick

Member
Location
south west
Farming unfortunately has an odd way of distorting our kids choices. There probably wouldn't be any other businesses in the UK where there is such a high percentage of offspring that carry on their parents profession.
Even royalty expect at least cousins to make their own way.
 
Location
Cheshire
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First time feeding multicut, been on last years regular cut till this week, could be entertaining for a month or two.
 

Blue.

Member
Livestock Farmer
I have worked with several privately educated people from the likes of Eton and Marlborough etc. Not sure I agree with it being a good investment!

Hunger, grit and intelligence is much more important
Politicians……. Etc

I do think there is an unhealthy aversion to debt in a lot of these posts

If you were to look at the majority of successful companies in the world they would be carrying 30-50% of their business capital as debt.

Successful management of debt simply requires a performance that is likely to exceed future interest rates and depreciation and an understanding of all that.

If you want to know what farming with real debt is like ask @Serup. Some northern Europeans don't even think repaying the capital is worthwhile.
If future interest rates get to 5% or more I’m done for.
That’s only because their laws work in that way!
debt is a very personal and age/stage of career related thing. I have perhaps done things the hard way. By only mortgaging land and doing everything thing else through the overdraft. But it does keep you on your toes. Doing building projects through the overdraft can be a bit tricky at times though. 🙁
I never met a bank manager till 7 years ago,his 1st question was,what’s your overdraft? I’d never had one and despite my dad’s advice that your better off with one I’ve never felt the need for one,in the 80s his overdraft would be the value of his milkers.on a tenanted farm I found that unbelievable.
Having a huge mortgage doesn’t bother me though.
I came home to a business with fairly high debt levels, my attitude towards debt is easing but as a tenant big debt is never something I've had access to or been comfortable with..........








.......but I pay £150k + in rent each year. At current interest rates that wouldn't buy me a decent sized mortgage. My choices however are very limited because both mine and wife's parents are aging and local and there's not a chance she would move more than a few miles away.
Paying £150k/year your making your landlords a tidy sum,it would mortgage £2.8m
Oh and if they think about settling down before 30 then I’m not sure how impressed I’ll be.
I bought my 1st house at 18 and was married at 21,my only regret was not having kids earlier,married 13 years before we bothered,we were too busy empire building.
The way some people talk about debt and how easy it it to service etc on here really makes me scratch my head with surprise, am I the only one who tries to line up a plan for the next twelve month/few years and something always comes and throws the spanners in the works. Maby I rubbish at business, but a lot of our farming involves over very changing dinamics, I wouldnt even consider the gearing people mention on here. Obviously everyone is positioned differently.
My wife says I’m thinking 5-10 years ahead and she’s thinking about today,everyone’s different such is life.
 
So what do you hope for your kids if you have any.
I have three, eldest lad only had one ambition whilst at school, and that was to join the Royal Marines, he left school and went straight into the Royal Marines, that was nearly twenty years ago, when he came out the Marine's he decided he wanted to be a farm manager which he now is, currently managing approximately 3500 acres, youngest lad (18) is what I'd call a slow burner, absolutely brilliant at school, could do what ever he'd like, but he doesn't want an academic life (if that's the right expression) very heavily into genetic's of various species, and the course he's taking himself in two or three years he will have a good business, daughter is sixteen, currently at college studying business, media and biology, very heavily into photography at which she is excellent, I don't know, but that's where her heart is and I shouldn't be surprised if that's where her future lie's. One thing they have all made their own choices and picked their own way, not been dictated too. You ?
 

frederick

Member
Location
south west
I have three, eldest lad only had one ambition whilst at school, and that was to join the Royal Marines, he left school and went straight into the Royal Marines, that was nearly twenty years ago, when he came out the Marine's he decided he wanted to be a farm manager which he now is, currently managing approximately 3500 acres, youngest lad (18) is what I'd call a slow burner, absolutely brilliant at school, could do what ever he'd like, but he doesn't want an academic life (if that's the right expression) very heavily into genetic's of various species, and the course he's taking himself in two or three years he will have a good business, daughter is sixteen, currently at college studying business, media and biology, very heavily into photography at which she is excellent, I don't know, but that's where her heart is and I shouldn't be surprised if that's where her future lie's. One thing they have all made their own choices and picked their own way, not been dictated too. You ?
So mine son 15 and daughter 11.
Son has looked like being a farmer forever which is why he is given as many opportunities as possible to see other options and to only come home because he wants to do it. Not because it's expected of him.
Daughter could be anything but she is also an absolute natural around the cows.
There is a lot of water to pass under the bridge before any decisions have to be made. The odd thing as a farmer however is I will make a decision to keep farming so the option remains open to them whilst most normal people would cash in.

In my case at 16 I just wanted to come home. Parents more or less forced a levels on me. After that I then wanted the degree, the year on a farm in the UK and the year in New Zealand. Not wanting or expecting me back was the best thing they ever did for me.
 

Martyn

Member
Location
South west
HEATING TMR
Iv started doing a mix for older beef group, am trying to do one mix to last two days, maize, silage and cereal. I'm finding after lunch on the second day it's starting to steam if you pushit up.cattle are clearing it up, but guess heat means goodness loss, other than doing a daily mix any other suggestions?
 

frederick

Member
Location
south west
Yeah, mugs game being a landowner, 1% return on capital in rent. We are fortunate being in an arable area that there is limited competition for the pick of rented land.
Not so certain about that return. Nearly twenty years ago I bought my brother and sister out of their future inheritance at market value. That one's done me alright. The land 8 years ago is a slower burner but it's moved a bit again now.
In 1974 gold was 200 dollars an ounce and is now 1800 a 9 times increase.
In 1974 the land price was around 500 an acre on the savills graph and is now over 8000 so a 16 fold increase. Plus unlike gold it also gets an annual dividend in Rent.

Not many asset classes will have performed as well.
 
I came home to a business with fairly high debt levels, my attitude towards debt is easing but as a tenant big debt is never something I've had access to or been comfortable with..........








.......but I pay £150k + in rent each year. At current interest rates that wouldn't buy me a decent sized mortgage. My choices however are very limited because both mine and wife's parents are aging and local and there's not a chance she would move more than a few miles away.

£150k a year in rent! Are you not tempted to go and buy a farm in Scotland?
 

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

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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.

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