Setting up on your own

[HasthorpeGrange]

Hi everyone, as the title suggests my long term plan is to set up on my own one day. Just interested in how everyone else got started on there own. Currently herdsman on a 500 cow split block unit but I’ve always wanted to go late summer/ autumn calving. What’s everyone’s thoughts on this? I’m thinking of in 5 years time. How much will I realistically have to save up?

 

[Fendt516profi]

 

[jackrussell101]

A chap near me started off with a 20% equity split on a 200 cow spring calving unit 10 years ago, he's now milking 1200 cows across three sites.

I think your biggest asset will be your knowledge and managerial ability and if the right business partner is found, I.e some farmer that wants to expand and is prepared to be the main financial backer it could work well for both parties.

 

[BELOWAVERAGE]

A chap near me started off with a 20% equity split on a 200 cow spring calving unit 10 years ago, he's now milking 1200 cows across three sites.

I think your biggest asset will be your knowledge and managerial ability and if the right business partner is found, I.e some farmer that wants to expand and is prepared to be the main financial backer it could work well for both parties.

Can't quite get my head round that type of thing, surely your just working harder and and stressing over some one else's money, easier to just be an employee and no different, still have some one to answer to, (in my book you'd still be owned) far better to sail your own bath tub than some one else's yacht. (I do appreciate I'm gonna get shouted down for this)

 

[farmerdan7618]

Three reasonably achievable options, outside of being on a family farm. See plenty of them in the day job as an accountant, but will admit to not doing them myself (family farm here, still run by parents)

Start small - save up and buy your own little patch as a base, might only be 13 acres of bare land. Continue to work elsewhere whilst building up a little setup on your land, and stocking it with your own animals. Do a good job and grazing lets will come your way. Better for sheep or beef, will be very difficult for dairy.

Tenancy - keep your eyes open for starter units, they do come up, and keep knocking on the doors of the agents. Put a business plan in wherever you feel you could make a go of it.

Share farming - again make it known to all the land agents that you are looking for a share farm. Would always be specific to each agreement as to how you grow equity, but using profits to purchase shares in a joint company can work well and grow your holding. Some will be quite hands off partners who want the return, and others will want to see more of how things are done on a daily basis.

In all 3 cases, you want to be at 100k ish for a foot in the door, so you need to save hard to get there.

How you do that saving is up to you, whether it is invest in a house, investment portfolio, or Land Rover Defender's. I would point you away from building it up in the current account though, as it will earn next to no return and 98% of people would spend it.

 

[Bald Rick]

Hi everyone, as the title suggests my long term plan is to set up on my own one day. Just interested in how everyone else got started on there own. Currently herdsman on a 500 cow split block unit but I’ve always wanted to go late summer/ autumn calving. What’s everyone’s thoughts on this? I’m thinking of in 5 years time. How much will I realistically have to save up?

Google Matthew Jackson pen lleyn

He was born and brought up on a Manchester council estate, spent all his holidays helping on farms , at 16 started as a herdsman for Rhys Williams and Dafydd Wynne Finch, used his earnings to buy heifers until he had sufficient to go it alone. I think he was able to rent little blocks until a farm came along.
Inspiring story

 

[jackrussell101]

https://hwcdn.libsyn.com/p/a/8/2/a82e18cae7c2199c/S2_E1_Final.mp3?c_id=65662946&cs_id=65662946&destination_id=533959&expiration=1600181370&hwt=5d605fcc628f9b81b9d155fca8bf55e8

 

[jackrussell101]

View attachment 1322733057Rhys_Williams_edited_report-1.pdf

 

[Dead Rabbits]

I’m Still an employee and am in much the same position as you. I want to own my own business.


I’ve nearly gone out on my own twice. I didn’t do it in the end for one reason. I looked 25 years ahead and decided when I’m 50 I want to be milking cows because I want to, Not because I have to. There is a very big difference. The scale I was looking at was 200 cows or less. Long term that just wasn’t going to do it. I want there to be enough scope to be bringing in my replacement.

Even as a manager I’m always looking to hire and train my replacement so that I can move on to the next thing. So far candidates have been scarce.

So my focus has turned a bit to either partner with someone or something along those lines. Always wanted to share milk but opportunities are limited here. Currently in the next 3-4 months we will be discussing an equity partnership between me and my current employer. Maybe it will work maybe it won’t. I am going into it completely prepared to walk away from everything if it’s not a good deal.

Having a low cost of living and very little use for personal possessions has always allowed me to operate from a position of power. I have a Monthly phone bill and that’s it. 10k a year I feel like I’m living like a king. If I don’t like something, I don’t have to do it, I can just walk away. If I don’t have any income for a few months or years, so what. When you don’t have big money that’s a powerful thing to be able to do. Most people can’t afford to not work.

 

[Bald Rick]

Google Matthew Jackson pen lleyn

He was born and brought up on a Manchester council estate, spent all his holidays helping on farms , at 16 started as a herdsman for Rhys Williams and Dafydd Wynne Finch, used his earnings to buy heifers until he had sufficient to go it alone. I think he was able to rent little blocks until a farm came along.
Inspiring story

Matthew Jackson - British Farming Awards

Find out more about <strong>Matthew Jackson</Strong> - 2017 new entrants shortlist at the British Farming Awards

www.britishfarmingawards.co.uk

Gwynedd farmer succeeds against the odds after starting with nothing

Manchester-born Matthew Jackson arrived on the Llyn Peninsula at the age of 15 and now milks 400 cows on a share farming arrangement

www.dailypost.co.uk

Be inspired

Also on Twitter

https://twitter.com/mjj70?lang=en

and facebook

Matthew James Jackson

Matthew James Jackson is on Facebook. Join Facebook to connect with Matthew James Jackson and others you may know. Facebook gives people the power to share and makes the world more open and connected.

www.facebook.com

 

[HasthorpeGrange]

Buying heifer calves, rearing them and leasing them out to build numbers might be an option. Gives a herd ready to go when needs be

 

[multi power]

Can't quite get my head round that type of thing, surely your just working harder and and stressing over some one else's money, easier to just be an employee and no different, still have some one to answer to, (in my book you'd still be owned) far better to sail your own bath tub than some one else's yacht. (I do appreciate I'm gonna get shouted down for this)

Absolutely right, however in the short term the opposite can be luctritive

 

[multi power]

Buying heifer calves, rearing them and leasing them out to build numbers might be an option. Gives a herd ready to go when needs be

As long as you are in a low tb area

 

[Kiss]

From experience rearing heifers and leasing them out seems a nice idea but doing it on top of managing a big herd imo isn’t worth it for a few, I sold the few I had and put it into a house

I would say buying a house isn’t a stupid idea but you’ll probably have one with your job so buy a dooer upper it’ll earn you far more than a few heifers on paper! And moneys so cheap atm

doing the dairy entrepreneurs course wouldn’t be a bad suggestion.

I also agree with dead rabbits don’t under estimate how many cows a good salary equates to! You should be asking your currently employer to show you numbers etc because they are real to you and should benefit him/her you seeing them.

I think most of those who have started on there own from scratch will of shared the same values as the people who have helped them, don’t forget there’s a shed load of money borrowed usually to get on, even those that have done it probably borrowed a few grand off the parents, rented some really cheap ground,

 

[Beef farmer]

Hi everyone, as the title suggests my long term plan is to set up on my own one day. Just interested in how everyone else got started on there own. Currently herdsman on a 500 cow split block unit but I’ve always wanted to go late summer/ autumn calving. What’s everyone’s thoughts on this? I’m thinking of in 5 years time. How much will I realistically have to save up?

@jimmer Went on his own 2 years ago? Maybe 3? Now running 2 units so he will have some real and scary costs to share.

Did you travel last year? Did you work with cows when you where there?
I thought back along you mentioned you where working on the family farm milking cows.

 

[HasthorpeGrange]

I worked on the family farm for 5 years after school. Went traveling but that got cut short. Did 1 week on a 7000 cow contract farming set Up that ran 7 farms. Came back got my current job as herds man for 500 cows with young stock. Needed to learn more about people management and grass management. I’m pretty confident with the cows but need to be the whole package to go it alone

 

[BELOWAVERAGE]

Absolutely right, however in the short term the opposite can be luctritive

Thinking about it, you'd be insulated from the extreme lows of a one man band starting from scratch, if the milk price plummeted or you were shut up with tb, or any other major problems, there'd be a pot of gold to draw on, as the other party wouldn't want too loose their investment, still not for me but would save some serious headaches.

 

[Beef farmer]

Can't quite get my head round that type of thing, surely your just working harder and and stressing over some one else's money, easier to just be an employee and no different, still have some one to answer to, (in my book you'd still be owned) far better to sail your own bath tub than some one else's yacht. (I do appreciate I'm gonna get shouted down for this)

If as a share milker you can't earn more than a herdsman, then share milking isn't for you.
There are some share milkers who are earning more than most average dairy farmers, and all they have tied up is some machines and heaps of cows.

 

[jimmer]

My two penneth
Starting from scratch with a hiho system is close to impossible at a scale needed to be viable
Low cost grass based is much easier and less cash hungry, but, big but, grass based requires milk contract to suit, and they ain't being handed out willy nilly at present

 

[jimmer]

Do not start small, fixed costs need to be met and variable ones will appear from thin air