Northern Ireland Milk Price Tracker

The medium to long term view has been good since I left school, don't expect the processors to say anything else. What price would you need to commit to investment? 2 years ago the 10 year average price for the UK was 25p, by the end of last summer it was 24, I'm not saying that that's a good price but it's probably a reasonable number to do investment calculations on.
How long a term for investment would you suggest for pay back. Most certainly under ten years..... I'd say I need a payback in seven. Could a new 150cow unit pay itself in 7 years????. From what I can see the only quicker way is more cows to justify the expenditure but for me that's a none starter. Were far to good at our job and have have went full circle. Yield is short term profit....next months milk cheque. Need to concentrate on profit long term and ultimately can only be done with lower yields or cow numbers. It's yield yield yield. A myth driven by the dept ie government
 

Turboman

Member
Location
N.I.
How long a term for investment would you suggest for pay back. Most certainly under ten years..... I'd say I need a payback in seven. Could a new 150cow unit pay itself in 7 years????. From what I can see the only quicker way is more cows to justify the expenditure but for me that's a none starter. Were far to good at our job and have have went full circle. Yield is short term profit....next months milk cheque. Need to concentrate on profit long term and ultimately can only be done with lower yields or cow numbers. It's yield yield yield. A myth driven by the dept ie government

I'd be happy with a lower monthly repayment over ten years. Easier to cope with voliality that we face. Many take investments in buildings over 15 years or even 20. Personally think ten years is better and if you have extra cash to spend in one or two good years then throw it at the loan and reduce your borrowings if you wish, easier to do this than go begging to the bank manager seeking an extension or a capital holiday when milk price drops back to the teens again, and it will !!
 
I'd be happy with a lower monthly repayment over ten years. Easier to cope with voliality that we face. Many take investments in buildings over 15 years or even 20. Personally think ten years is better and if you have extra cash to spend in one or two good years then throw it at the loan and reduce your borrowings if you wish, easier to do this than go begging to the bank manager seeking an extension or a capital holiday when milk price drops back to the teens again, and it will !!
You used borrowings repayments and volatility in the same paragraph. Not a good combination
 

Turboman

Member
Location
N.I.
You used borrowings repayments and volatility in the same paragraph. Not a good combination

Yes I did use all of them words in the same paragraph, all of them have been applicable to my farming business for as long as I can remember. Not many farmers in any enterprise can cope without borrowings unless they were lucky to have a big SFP to smooth out volatility. Hard to progress in life without a loan from time to time to take your business forward , but that's just my opinion.
 

The Agrarian

Member
Mixed Farmer
Location
Northern Ireland
Early indications from the French election suggest a Macron/Le Pen second round run off. With Macron expected to win it, watching for the market to start pricing this into the euro as fear subsides.
 

jay

Member
Location
Co Down NI
How long a term for investment would you suggest for pay back. Most certainly under ten years..... I'd say I need a payback in seven. Could a new 150cow unit pay itself in 7 years????. From what I can see the only quicker way is more cows to justify the expenditure but for me that's a none starter. Were far to good at our job and have have went full circle. Yield is short term profit....next months milk cheque. Need to concentrate on profit long term and ultimately can only be done with lower yields or cow numbers. It's yield yield yield. A myth driven by the dept ie government
It would be a very tight ship to pay back a new complete unit in7 years but I wouldn't want to borrow longer for anything but land these days, and we all know that land doesn't actually pay itself off anyway. I don't believe borrowing more to expand means you can pay it off quicker, economy of scale is a myth above 150 ish cows.
 

Ballygreenan

Member
Location
Tyrone NI
Well,that's some weather!
Has everybody got it in yet?
I wanted to put mine in the other day but The Wife said" No,it's too short. Just wait til it grows a bit."
Not fair.
Why's mine so short?
Wee Willy.
Sometimes it's not all about the length, a bit of thickness can make up for it being short. It might be better to try and get it in before it gets too damp.
 

SFI - What % were you taking out of production?

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  • 75-100%

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  • 100% I’ve had enough of farming!

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Red Tractor drops launch of green farming scheme amid anger from farmers

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As reported in Independent


quote: “Red Tractor has confirmed it is dropping plans to launch its green farming assurance standard in April“

read the TFF thread here: https://thefarmingforum.co.uk/index.php?threads/gfc-was-to-go-ahead-now-not-going-ahead.405234/
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