Buying a dairy farm

[deere 6600]

20-30 cows, retail all the milk

Getting a milk buyer prob the biggest issue remember years ago old local dairy farmer flying herd beef calves the same pric as a tonne of dairy cake so that's what he fed plu strip grazed grass 70 cows ok new calved heifers not cheep but you buy what you like

 

[Cowman31]

Good evening all, Im currently looking at buying a 100 acre dairy farm, big statement I know, I worked on farms in my youth years and have a reasonable understanding but are all ears.
I’m currently working as a contractor in construction and are totally fed up and need to change, I totally understand farming is a way of life and also understand it’s extremely hard work.

I have been trying to research the internet reference the below but find very little info.

I’m very curious to know more on the figures of the following,
the Profit a 70 herd would Likely to achieve.
The cost of buying in livestock.
I would be most grateful on any guidance and advice you all have to offer.
Many thanks
Justin

I say good on you and go for it, your only here once

 

[Cowman31]

Good evening all, Im currently looking at buying a 100 acre dairy farm, big statement I know, I worked on farms in my youth years and have a reasonable understanding but are all ears.
I’m currently working as a contractor in construction and are totally fed up and need to change, I totally understand farming is a way of life and also understand it’s extremely hard work.

I have been trying to research the internet reference the below but find very little info.

I’m very curious to know more on the figures of the following,
the Profit a 70 herd would Likely to achieve.
The cost of buying in livestock.
I would be most grateful on any guidance and advice you all have to offer.
Many thanks
Justin

I say good on you and go for it, your only here once

 

[pappuller]

I say good on you and go for it, your only here once [emoji106]

You were here twice

 

[Sandpit Farm]

I bet you could stock a grazing farm by buying cows that have fallen out of the service window on a decent Spring Calving herd

 

[Happy at it]

Forget who said it, but always think on a post on here that said if you have enough money to go into dairying, you have enough not to need to bother. Bit of truth in it.

 

[Jaffa Cakes]

Forget who said it, but always think on a post on here that said if you have enough money to go into dairying, you have enough not to need to bother. Bit of truth in it.

Probably true but I am more inspired by the guys that build up from very small beginnings rather than the big enterprise setting up with a pile of debt!

Out of curiosity what is the least amount of milk that processors will collect? I know all are different, curious to hear how it varies across the country.

 

[startinghandle]

I know of a father and son who are milking 95 and the father told me he was better off years ago when milking
35..... I read on this site a lot that the price of milk does not keep up with production costs

 

[Jdunn55]

Probably true but I am more inspired by the guys that build up from very small beginnings rather than the big enterprise setting up with a pile of debt!

Out of curiosity what is the least amount of milk that processors will collect? I know all are different, curious to hear how it varies across the country.

1000 litres is the minimum collection threshold, below that and you have to pay £10/collection which soon adds up. Theres no guarantee that they'll want to collect your milk if you're only doing 1000 litres though, I know saputo want farms doing 1 million litres a year and arent really interested in anything less, unless you're high butterfats

 

[Jaffa Cakes]

1000 litres is the minimum collection threshold, below that and you have to pay £10/collection which soon adds up. Theres no guarantee that they'll want to collect your milk if you're only doing 1000 litres though, I know saputo want farms doing 1 million litres a year and arent really interested in anything less, unless you're high butterfats

Thanks, is that sort of standard across the country?

 

[Jdunn55]

Thanks, is that sort of standard across the country?

Pretty much, you're looking for somewhere in cornwall though?

 

[Jaffa Cakes]

I'm in NI, may have hijacked the thread. Apologies to the OP

 

[Sandpit Farm]

I know of a father and son who are milking 95 and the father told me he was better off years ago when milking
35..... I read on this site a lot that the price of milk does not keep up with production costs

A quick look at some figures and it seems that from National figures for AYR calving herds the top 25% have Full economic COP at 28.1ppl (25.8 for cash costs) and the middle 50% are at 32.1ppl (28.7ppl cash costs). Those are from AHDB benchmarks

 

[Sandpit Farm]

I would urge anybody starting to think about BOTH cash costs and full economic costs. You cannot afford to live off the depreciation for too long otherwise the farm will become unsustainable. Depreciation isn't something you physically write a cheque for so it is easy not to include it in your costs but in 10 yrs time when you need a new roof for a building etc, you have to pay for it then!!

 

[multi power]

A quick look at some figures and it seems that from National figures for AYR calving herds the top 25% have Full economic COP at 28.1ppl (25.8 for cash costs) and the middle 50% are at 32.1ppl (28.7ppl cash costs). Those are from AHDB benchmarks

But are any AYR calving herds in the top 10% ?
If you want low costs it has to be seasonal

 

[dinderleat]

But are any AYR calving herds in the top 10% ?
If you want low costs it has to be seasonal

As long as you are in control of your costs it doesn’t matter what system you run.

 

[grass man]

As long as you are in control of your costs it doesn’t matter what system you run.

Unfortunately my suppliers are in charge of my costs

 

[dinderleat]

Unfortunately my suppliers are in charge of my costs

Yes to a point but we all choose to purchase and do you need it/is there a cheaper alternative, or even if you spend a bit more will you see more of a return.

 

[O'Reilly]

Yes to a point but we all choose to purchase and do you need it/is there a cheaper alternative, or even if you spend a bit more will you see more of a return.

Or are you using it efficiently?

 

[farmerm]

If you are fed up in construction just wait until you are up in the wind and rain at 4am on a Sunday in November having started at 4am and finished at 7pm every day for the previous month... the milk lines are frozen, the scraper tractor wont start, bearing has failed on the feeder wagon, there is a cow down with milk fever, one of the replacement heifers has dropped dead, the silage pit is emptying fast and the slurry pit filling even faster and you are getting paid 27p/litre to produce milk that is costing you 30p/litre with your milk buyer threatening to drop your contract.... I am waiting for someone to one day go onto Dragons Den and pitch the idea of investing in setting up a 70 cow dairy herd... But don't let any of that put you off. I think you need to go bigger though, not worth getting out of bed for less than 200 cows.