Is he mad?

[Hooby Farmer]

If this chap is on 60k a year, he could pay a good trust worthy stock man X every year and get the farm up and running, and go to the farm at the weekend and holidays and run it remotely during the week. Of course this would be short term, 2-3 years, but he would have 2 income streams, knock down some debt and hopefully gather up some savings for a rainy day, exit strategy. I know thats an ideal scenario but it could work successfully. I know a man with 140 suckler herd with all the followers and a few sheep. He pays a man full time to run the farm, while this guy runs another business.

 

[Baling Hay]

If this chap is on 60k a year, he could pay a good trust worthy stock man X every year and get the farm up and running, and go to the farm at the weekend and holidays and run it remotely during the week. Of course this would be short term, 2-3 years, but he would have 2 income streams, knock down some debt and hopefully gather up some savings for a rainy day, exit strategy. I know thats an ideal scenario but it could work successfully. I know a man with 140 suckler herd with all the followers and a few sheep. He pays a man full time to run the farm, while this guy runs another business.

After he pays his tax, student loan and rent he wouldn't have enough money to pay a stockman. This thread has really highlighted the fact that farmers don't realise how much tax people on pay as you earn have to pay. He told me he comes home with less than £3k per month! Tax in 40% bracket, 12% National Insurance and 9% student loan means he comes home with about 39% of what he earns!!! Sickening.

 

[Hooby Farmer]

Rough calculations would suggest around £38k a year. From the information provided he works at his job around 230 days a year taking into account weekends, bank holidays, and annual leave. That leaves him very well paid around £165 per day worked at his job. That leaves him 135 days to input into his new farm venture. Between what he makes and what little the farm would make he could pay a stock man. I did say in my previous post 'ideal scenario' much like the one i have presented again. Anyone can give 10 reasons why it wont work, if he knuckles down there is no reason why it shouldnt work!

 

[davieh3350]

Got a big btb problem in Scotland ?

Yes, the false reactors.
3 months not being able to move any cattle. All for nothing!

 

[Bury the Trash]

Yes, the false reactors.
3 months not being able to move any cattle. All for nothing!

 

[Baling Hay]

Rough calculations would suggest around £38k a year. From the information provided he works at his job around 230 days a year taking into account weekends, bank holidays, and annual leave. That leaves him very well paid around £165 per day worked at his job. That leaves him 135 days to input into his new farm venture. Between what he makes and what little the farm would make he could pay a stock man. I did say in my previous post 'ideal scenario' much like the one i have presented again. Anyone can give 10 reasons why it wont work, if he knuckles down there is no reason why it shouldnt work!

What would a stockman be paid? Would it not be difficult to make a profit from beef and sheep whilst renting and paying a stockman also?

 

[M-J-G]

After he pays his tax, student loan and rent he wouldn't have enough money to pay a stockman. This thread has really highlighted the fact that farmers don't realise how much tax people on pay as you earn have to pay. He told me he comes home with less than £3k per month! Tax in 40% bracket, 12% National Insurance and 9% student loan means he comes home with about 39% of what he earns!!! Sickening.

I wouldn't be so naive as to assume that many farmers don't know what it's like to cross a 40% tax threshold.

The difference is that the farmer will invest in order to keep himself below it.

Something that someone who's always been PAYE would need to be learning pretty quickly if he was to start his own business.

Taking me back to my point earlier in the thread, about those put into jobs where they are In Charge of big budgets where the money is not their own, often have things to learn when they start up on their own.

 

[7610 super q]

Well if he insists on making the jump, I'd suggest the whole hog, and emigrating to NZ / Aus/ USA.

 

[ollie989898]

Well if he insists on making the jump, I'd suggest the whole hog, and emigrating to NZ / Aus/ USA.

Biggest dollop of sense yet injected into this thread.

 

[Happy at it]

Yes, but don't think he is factoring that in! He reckons he should be able to make close to 50-60k from milking 130 cows?

Pulling in 50 k from a rented farm milking cows?? Yeah, he's mad. Absolutely nuts....

 

[ollie989898]

So anyone on an owned farm with 200 or even 400 cows must have trouble counting the money!

The truth is that it is hard to make money with 400 cows on a farm you own unless you are VERY good at the job.

Attention to detail is hard. No consultants are about who can magically make you good at dairying. If you aint got it you probably aint ever gonna have it.

 

[farmboy]

What did he decide in the end?

 

[Baling Hay]

What did he decide in the end?

Don't know, haven't spoken to him in a few weeks as I have been so busy. Will find out over the weekend.

 

[farmboy]

Interested in this thread as at a bit of a crossroads myself. Currently in a decent enough herdsmanagers job earning a reasonable salary plus house etc. Would love to go out on my own, seen a few council dairy farms about recently but is hard to justify financially really

 

[Agrispeed]

Interested in this thread as at a bit of a crossroads myself. Currently in a decent enough herdsmanagers job earning a reasonable salary plus house etc. Would love to go out on my own, seen a few council dairy farms about recently but is hard to justify financially really

What about moving to owning some of your bosses cows (or some of your own in thier herd) and they rent them off you?

I know several herd managers have moved into ownership by buying some cows off their employer or them renting your cows of you - It's a good way for you to build equity and create your own herd nucleus over a longer period, its a very big step otherwise!

From cow rental you can move towards contract farming, or your own farm when you have enough equity. Its a very cheap way to get a very high genetic merit herd if you buy calves and bring them on too.

 

[FonterraFarmer]

Biggest dollop of sense yet injected into this thread.

Some of us had thought that 10 pages back!

 

[farmboy]

What about moving to owning some of your bosses cows (or some of your own in thier herd) and they rent them off you?

I know several herd managers have moved into ownership by buying some cows off their employer or them renting your cows of you - It's a good way for you to build equity and create your own herd nucleus over a longer period, its a very big step otherwise!

From cow rental you can move towards contract farming, or your own farm when you have enough equity. Its a very cheap way to get a very high genetic merit herd if you buy calves and bring them on too.

Not sure if the boss is forward thinking enough for this!! I do own my own house which is let out and have a fair bit of equity in it as well as cash in the bank, just not sure if it makes financial sense to sell it to fund a herd of cows!