Investments to improve the bottom line

pappuller

Member
Livestock Farmer
Location
M6 Hard shoulder
While watching the rain yesterday I thought of a couple of investments one of which I consider to be a no brainer and with having a little spare cash about will look further into it.
A borehole/well should have a payback within 3 years, cubicle mattress upgrades some what longer.
What investments do other people consider would improve the bottom line and reduce the costs for any belt tightening in the next few mnths ????
 

Agrispeed

Member
Location
Cornwall
Cow tracks. Its something no one thinks of but saves so much time and even a couple of days extra grazing or a few less lame cows would pay for what can be a fairly minor investment.

Diverting and using roof water is also a easy way to save money - turns water in the slurry pit (and the cost of removing it) into a potential saving on water costs.

its the cheap and relatively easy things people forget about. If i was cynical I would suggest its because there isn't a margin in selling it to farmers...
 

pappuller

Member
Livestock Farmer
Location
M6 Hard shoulder
Cow tracks. Its something no one thinks of but saves so much time and even a couple of days extra grazing or a few less lame cows would pay for what can be a fairly minor investment.

Diverting and using roof water is also a easy way to save money - turns water in the slurry pit (and the cost of removing it) into a potential saving on water costs.

its the cheap and relatively easy things people forget about. If i was cynical I would suggest its because there isn't a margin in selling it to farmers...
We cllect our roof water purely for washing down,we couldnt collect enough to supply anything else, our water bill is around £1k a mnth so I was thinking if we could 1/2 this it would pay for itself in 2 years. Re tracks I think they are the most important investment for grazing cows and I think @lazyfarmer project concrete is an excellent investment for his system. My only track investment has increased in value by 600%, we bought 2000 sleepers for £1 each 10 yrs ago now nudging £7 each.
 

supercow

Member
Location
Dumfriesshire
Where would you ever start?! Machinery to reduce contracting bill? A baler IF u use bales, umbilical if it suits farm, anything that improves cow/calve welfare to reduce vet/labour bill. Improvements to old sheds to muck out with loader or feed easier. We actualy have a man retiring in about 6 years and I think of ways of reducing labour that much to justify not replacing him. But maybe getting someone the odd day when we r really busy. Replace any machinery that is breaking down constantly that loses time, we always have scrapers breaking that we can lose half a day fixing.Putting hydraulic sracpers in to replace chain ones, goes along with the new shed extension. I would say anything that can reduce a mans wage and improving animal health by making things easier.
 

DairyGrazing

Member
Mixed Farmer
Location
North West
Bore hole
Silocompactor
Push up silage more often
Improve feed barrier and feed surface
Feed twice a day or once in between milking
Maxamise your milk cheque low scc, bacto, send your milk at the right time of year
Make sure you send all you milk i.e dont tip it down the drain so reduce mastitis fouls calving problem
Dry cow and transition yards
Efficient calf accomodation
 

supercow

Member
Location
Dumfriesshire
What cost are you looking at for a bore hole? When it's dry weather our spring can go dry after a month of little rain, believe it or not I was starting to get worried may time I think because we were slightly low in water so a bore hole would be a more secure water source. Water in the spring not a problem at the moment! Every cloud!
 

pappuller

Member
Livestock Farmer
Location
M6 Hard shoulder
Bore hole
Silocompactor
Push up silage more often
Improve feed barrier and feed surface
Feed twice a day or once in between milking
Maxamise your milk cheque low scc, bacto, send your milk at the right time of year
Make sure you send all you milk i.e dont tip it down the drain so reduce mastitis fouls calving problem
Dry cow and transition yards
Efficient calf accomodation
Ive only got a few quid to spend so will settle for the one at the top of your list.
 

pappuller

Member
Livestock Farmer
Location
M6 Hard shoulder
Rather than spending it all, build up a cash buffer in the good times to get through the next downturn that will come. Then you can be one of the few farmers not complaining and blaming everything and everyone else the next time the milk price drops, even though we all know milk price goes in cycles.
So waters going to be cheaper when milk price dips ?? No intention of spending it all just investing where it will have a greater impact on my business during a downturn.
 

pappuller

Member
Livestock Farmer
Location
M6 Hard shoulder
What cost are you looking at for a bore hole? When it's dry weather our spring can go dry after a month of little rain, believe it or not I was starting to get worried may time I think because we were slightly low in water so a bore hole would be a more secure water source. Water in the spring not a problem at the moment! Every cloud!
Thinking of around £7k to bore/find/install and pump and then get it tested and spend similar again to set up filtration and distribution network.
 

Agrispeed

Member
Location
Cornwall
I run everything off a borehole. Saves a fortune, although as said you can run short if very dry (although if you were aware of the volumes you were abstracting you could go deeper to be more secure.

There are running costs to bear in mind and therefore it isn't quite as simple as using mains (pump problems, water pressure, filters to monitor & replace etc), but compared to mains water it is very, very cheap indeed, with virtually no drawbacks.

Along with water I would look closely at reducing electricity costs, as these are virtually guaranteed to only increase in time, and there are some very cheap and efficient systems nowadays. We have a lot of solar and I can heat water and build ice for virtually free during the day (as we produce more power than we can export to the grid)
 

Clay52

Member
Location
Outer Space
So waters going to be cheaper when milk price dips ?? No intention of spending it all just investing where it will have a greater impact on my business during a downturn.

No matter what, cash flow is king. Build the buffer first to get through a price downturn. Then start looking for investments to save money.

No good having a heap of money saving investments that should make you more in the long run but you can’t pay your bills when we have the next price crash.
 

pappuller

Member
Livestock Farmer
Location
M6 Hard shoulder
No matter what, cash flow is king. Build the buffer first to get through a price downturn. Then start looking for investments to save money.

No good having a heap of money saving investments that should make you more in the long run but you can’t pay your bills when we have the next price crash.
If you have a heap of money saving investments and cant pay your bills in a downturn you'll need to pay your debts before the heap grows in a good time, by which time the next downturn arrives.As for blame its always someone else's fault.
 

Bald Rick

Moderator
Livestock Farmer
Location
Anglesey
Thinking of around £7k to bore/find/install and pump and then get it tested and spend similar again to set up filtration and distribution network.

Tighten your ring Pap ........... I think you may need to double your budget (at least) as you really need to get down deep to ensure a constant supply - 70m should do it. Then you need at least 50mm pipe from hole plus electric all dug in. More than likely will need some treatment such as filtration, chlorination, potentially pulling out stuff such as manganese and the use of a UV lamp (bulb changed annually) plus pumps & tanks.
Yep £15k should cover it.
But you should get your money back within 18-24 months
 

dannewhouse

Member
Location
huddersfield
No matter what, cash flow is king. Build the buffer first to get through a price downturn. Then start looking for investments to save money.

No good having a heap of money saving investments that should make you more in the long run but you can’t pay your bills when we have the next price crash.

as long as the "investment" produces a return greater than the interest fee on the equivalent overdraft this may be the best way?
 

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