making a profit

[Clive]

What return on capital are you expecting. ?

From farming or outside farming ?

 

[lazy farmer]

Either

 

[thewalrus]

Hens and egg laying

 

[Clive]

Either

Think 3% farming owned land is realistic but I bet plenty are below that ? (I’m talking arable as I don’t know anything re livestock or horticulture returns )

None farming it depends upon how involved you want to be / risk adverse you are but 6% from something like resi property to 20% from a small business is not unrealistic

 

[lazy farmer]

all the returns above are possible within ag.
owner occupiers in dairy should be aiming at 10%. admittedly reinvesting at times is required so this figure is skewed.
Tennants and share farmers can achieve far higher return than this ,though they may well have far higher demands on their post tax monies.

 

[Alfred]

Rent all the land out to a AD plant for £300 acre. Then get yourself a "9-5" 5day a week job driving a nice new fendt spreading digestate for said AD plant all over the county. Its a no brainer!!!!

 

[deere 6600]

100 milk coos flying stock ie beef bull milk them yourself milk contract ?????

 

[The Agrarian]

all the returns above are possible within ag.
owner occupiers in dairy should be aiming at 10%. admittedly reinvesting at times is required so this figure is skewed.
Tennants and share farmers can achieve far higher return than this ,though they may well have far higher demands on their post tax monies.

What value would you be putting on land for that?

 

[Sid]

a tongue in cheek question, as we do our budgets etc, what will make you a decent living on a 150/200 acre farm, other than milking, chickens, or intensive cropping. It is a question that perhaps needs a sensible look at, as there are probably quite a few dairy farmers asking themselves the same question

Anything done with attention to detail and eyes on the ball.
Sitting back letting others do a half hearted job is a recipe for disaster.

Spending sensible time searching out value for money inputs and not buying anything AD hoc as you have just run out etc.

Try and ensure everything that leaves the farm makes as much as possible.

 

[andrew830]

all the returns above are possible within ag.
owner occupiers in dairy should be aiming at 10%. admittedly reinvesting at times is required so this figure is skewed.
Tennants and share farmers can achieve far higher return than this ,though they may well have far higher demands on their post tax monies.

What do you include in capit

all the returns above are possible within ag.
owner occupiers in dairy should be aiming at 10%. admittedly reinvesting at times is required so this figure is skewed.
Tennants and share farmers can achieve far higher return than this ,though they may well have far higher demands on their post tax monies.

When you say a 10% return on capital what does the capital figure include?

 

[lazy farmer]

Bit busy

 

[pappuller]

Bit busy

Where you jiving at lazy ? Cracking weather for a festival.

 

[Horn&corn]

What do you include in capit

When you say a 10% return on capital what does the capital figure include?

Guess it ought to include everything? Value of farm, stock, machinery etc. 200 ac so about £2 million depending on your location and buildings. Need to make £200k a year. Let me know if you manage that milking cows as I couldn’t!

 

[Spear]

Guess it ought to include everything? Value of farm, stock, machinery etc. 200 ac so about £2 million depending on your location and buildings. Need to make £200k a year. Let me know if you manage that milking cows as I couldn’t!

And that should be after paying yourself properly for all hours worked.

 

[pappuller]

Mid nineties we could turn a roi of 13/14% on 90 cows ayr conventional.
Now its nearer 8% on 180 cows but the capital value has increased from approx £750k to nearer £2m mainly through inflation, which scenario was easier is open to debate.

 

[lazy farmer]

Where you jiving at lazy ? Cracking weather for a festival.

Just a little local one in Taunton. Cracking day. KAiser chiefs are awesome have ruined my voice!

 

[Daniel]

Hens and egg laying

Wholesale markets awash with eggs at the moment even before the traditional summer slump. 50p/doz for mediums.

Huge expansion driven by Packers who know that if the going gets tough they can simply slash the producer price and let them carry the can.

At the same time feed prices have climbed by £35-40/ton over the last 18 months.

At some stage some cage sites will be shut down but there's no sign of that yet, to anyone thinking of jumping in now I'd say stress test your costings again!

 

[Clay52]

And that should be after paying yourself properly for all hours worked.

This is it. You need your 10% profit after allowing for the 100 hours a week you work and any other unpaid hours done by family members.

 

[Kiwi Pete]

This is it. You need your 10% profit after allowing for the 100 hours a week you work and any other unpaid hours done by family members.

The other option is to work much much less for the money the money you do make, and/or get a paying "job" of some description, and/or reduce investment in marginal production and re-invest the capital elsewhere.
Making profit is simple enough, but not so simple in an industry where working for love is an accepted "norm".

30k ÷ 100 hour weeks is a different animal to 30k ÷15 hour weeks and a 40-50k salary on top.
I do realise that it isn't for everyone though!

 

[slim pickins]

Aquaponics for 1 acre. The rest, depends on what you have already.