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Dairy Farming
Dairy farmers help me!!
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<blockquote data-quote="Cowabunga" data-source="post: 4473180" data-attributes="member: 718"><p><strong>REALITY CHECK!</strong></p><p></p><p>I've recently had my benchmarking figures from AHBD.</p><p>Up till June 16 the 12 monthly profit for <strong>one in four all year round dairy farmers with an average of 250 cows was a LOSS of 23ppl</strong></p><p></p><p>The average of all such farms was 0.1ppl profit.</p><p></p><p>Things get better in the year up to June 2017.</p><p><strong>One in four [25%] made a LOSS of 16.9ppl</strong></p><p>Average profit of 3.1ppl</p><p></p><p>Those are realistic net margins. They explain why so many large and small units are shutting up shop while those with land and enough family labour [unpaid] have and are expanding.</p><p></p><p>The main difference between my own profit and the top 25% average is purely down to the 3.5 ppl lower milk price we get here in West Wales according to the figures from AHBD</p><p></p><p>The figures for the North of Scotland will be similarly affected by a low milk price I imagine, partly the result of both distance and buyer competition [lack of].</p><p></p><p>These figures do not include the Basic Payment Scheme income, which you get regardless of whether you milk or not and which really makes very little difference to the bottom 40%'s viability.</p><p></p><p>It is not safe to assume that any new enterprise with new staff will be anywhere above average for the first three years in technical performance. Safer to assume around the top end of the bottom 25%</p><p></p><p>Any profit generated will be taxable BEFORE trying to repay overhead costs such as building loans. Losses will of course not be taxed but neither will they repay debts.</p></blockquote><p></p>
[QUOTE="Cowabunga, post: 4473180, member: 718"] [B]REALITY CHECK![/B] I've recently had my benchmarking figures from AHBD. Up till June 16 the 12 monthly profit for [B]one in four all year round dairy farmers with an average of 250 cows was a LOSS of 23ppl[/B] The average of all such farms was 0.1ppl profit. Things get better in the year up to June 2017. [B]One in four [25%] made a LOSS of 16.9ppl[/B] Average profit of 3.1ppl Those are realistic net margins. They explain why so many large and small units are shutting up shop while those with land and enough family labour [unpaid] have and are expanding. The main difference between my own profit and the top 25% average is purely down to the 3.5 ppl lower milk price we get here in West Wales according to the figures from AHBD The figures for the North of Scotland will be similarly affected by a low milk price I imagine, partly the result of both distance and buyer competition [lack of]. These figures do not include the Basic Payment Scheme income, which you get regardless of whether you milk or not and which really makes very little difference to the bottom 40%'s viability. It is not safe to assume that any new enterprise with new staff will be anywhere above average for the first three years in technical performance. Safer to assume around the top end of the bottom 25% Any profit generated will be taxable BEFORE trying to repay overhead costs such as building loans. Losses will of course not be taxed but neither will they repay debts. [/QUOTE]
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Dairy farmers help me!!
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