Goweresque
Member
- Location
- North Wilts
If this is representative of your thinking on the economics of farming, run away from farming quickly before you make a big mistake.
making a go at farming
- Thread starter southwestfarmer
- Start date
If this is representative of your thinking on the economics of farming, run away from farming quickly before you make a big mistake.
- Location
- Ceredigion, wales
Sorry, I wasn't meaning to insult you. I was just thinking from your post brexit/subs comments that you don't have sufficient understanding of how business and finances work yet.
also remember stamp duty and legal fees.
To be honest look at all options, I know someone from Rutland who has done this, he worked extremely hard and was originally from jockland. He has made a success, but he bought smaller I think approx 300 acres. He started from scratch as a farm manager, then rented a farm and then bought an 80 acre unit down here, then sold and moved to Scotland.
So may be start looking at smaller farms with maybe opportunities to rent extra land. Or look for share farming opportunities, you own the stock they own the land.
Don't give up but I think maybe , build up finances a bit more and wait for the potential fall out from brexit.
Keep ambitious and go for it, but keep real..
Good luck
To be honest look at all options, I know someone from Rutland who has done this, he worked extremely hard and was originally from jockland. He has made a success, but he bought smaller I think approx 300 acres. He started from scratch as a farm manager, then rented a farm and then bought an 80 acre unit down here, then sold and moved to Scotland.
So may be start looking at smaller farms with maybe opportunities to rent extra land. Or look for share farming opportunities, you own the stock they own the land.
Don't give up but I think maybe , build up finances a bit more and wait for the potential fall out from brexit.
Keep ambitious and go for it, but keep real..
Good luck
southwestfarmer
Member
- Location
- moretonhampstead
well not really I was only challenging someone elses view to further my knowledge I'm not going to run away from farming as I am already farming and have a sucsessful farm business at a young age thanks
southwestfarmer
Member
- Location
- moretonhampstead
southwestfarmer
Member
- Location
- moretonhampstead
check and check what makes you say that better prices cheaper land or better opportunities
Farming and large morgages don't add up, you may be young but you will never get out from under them.
Even farmer owners struggle.
As others have pointed out it's not just the buying it's the setup live stock, machinery, and all the things you didn't know you needed.
You need to think smaller, unless you can get far more money for a deposit.
To get that type of cash you would need a business plan that stacks up, for a bank to see you can repay it and still live.
If you reduced it to even 400k borrowing your looking at annual repayments of 31k a year for 30 years if it's at 7.5% interest.
If that's your sole income add to that what ever you think you will need to live on.
A better way maybe a small farm, or farm yard for 150k borrow 100k and start small and rent land to expand. Even then it will be tricky. And still it may require you to have a second job or sideline.
Your bank is the first hurdle getting them to lend against assets with an unknown income.
I personally think you would be lucky if they loan you more than double your deposit unless you have an income, to cover it.
By that I mean your employed or you have 2-3 years of income to show as self employed.
Now if you had the cash and could afford to buy out right, and really loved farming away you go, but your total mad.
Good luck and talk to someone to get proper numbers so you can go get your farm, what ever shape or size it ends up being.
Even farmer owners struggle.
As others have pointed out it's not just the buying it's the setup live stock, machinery, and all the things you didn't know you needed.
You need to think smaller, unless you can get far more money for a deposit.
To get that type of cash you would need a business plan that stacks up, for a bank to see you can repay it and still live.
If you reduced it to even 400k borrowing your looking at annual repayments of 31k a year for 30 years if it's at 7.5% interest.
If that's your sole income add to that what ever you think you will need to live on.
A better way maybe a small farm, or farm yard for 150k borrow 100k and start small and rent land to expand. Even then it will be tricky. And still it may require you to have a second job or sideline.
Your bank is the first hurdle getting them to lend against assets with an unknown income.
I personally think you would be lucky if they loan you more than double your deposit unless you have an income, to cover it.
By that I mean your employed or you have 2-3 years of income to show as self employed.
Now if you had the cash and could afford to buy out right, and really loved farming away you go, but your total mad.
Good luck and talk to someone to get proper numbers so you can go get your farm, what ever shape or size it ends up being.
Land prices ?? Haven't a clue but ---
Land prices are only marginally inflated by subsidies and potential returns . More relevant is the fact that there is only a limited amount of it
So I wouldn't expect a large downturn in land prices if we end up with zero subsidies and a harsh trading environment ---maybe 5% reduction (just a guess really as I don't have a clue)
Why would you not look?
What you need is the cost of the land in return for output of the land.
A 1 tonne wheat crop on land valued at £300 is different to 4 tonne land at 10k. Just keep open minded.
southwestfarmer
Member
- Location
- moretonhampstead
the only problem with buying a yard and renting ground is having the opportunities to expand
southwestfarmer
Member
- Location
- moretonhampstead
if you were in my position where would you look then ?
d williams
Member
Hour for lunch won't be had with that amount of debt being serviced by a farm at the moment
Honestly don't know as I haven't looked for 10 years, but I was keen and still may do one day. But at present I have 3 boys and a wife who are all settled and my ambition has declined somewhat in favour of enjoying my family. I favoured Canada 15 years ago. But not now I think maybe Romania ? I would have to research it.
Also chillie is a poss, stable government various climates.
Cowabunga
Member
- Location
- Ceredigion,Wales
Get the flu jab if you haven't already.
I would seriously consider farming overseas, for example in France, than here in the UK if you a) have cash, b) have no ties, c) are willing to learn the language. Better climate. Cheaper land is also decent land ie not the storm-swept side of a Scottish hill. And their government / population actually support them.
southwestfarmer
Member
- Location
- moretonhampstead
yes france looks great I cant speak French though although I have seen great set ups for 100-120 sucklers with arable land for 600-900 k surley you could service the repayments on that if you have a part time job because 100 cows wouldn't be a full time job with good set up??
southwestfarmer
Member
- Location
- moretonhampstead
yeah if you have ties it can be difficult as I have none I'm open atm whats farming in chillie and Romania like then do you reckon
- Location
- Ceredigion
I heard Dyson been spending again, Compton Estate