Silage wagon

[Milkman]

We are looking at buying a wagon, some where around 35m3 DIN. Repayments per year are less than we pay contractor, we would be cutting 160 acres per year all within 2 miles of home have tractor to drive it loader to push up and 2.4M mower, no rake but can hire one or get a contractor to drive it.
Now before everyone tells me to get contractor to do all, we won't have contractor turning up looking for a very large slice of SFP, €900 a month is a lot easier to find.

Now here is where my plan is different, we are thinking of giving machine to friend who will look after it better than me truth be told,he has a fleet of tractors, mowers, rakes and lots of drivers. He also would be cutting about the same acres. So we get ours cut by him and he has a wagon for free bar maintenance. We make repayments, that's all our silage in pit for €11000 when we want. I trust him completely.
Are we mad?

 

[rc mx110]

as long as its only yours and his silage it is lifting

 

[Milkman]

He may do 150 to 200 acres more

 

[ploughman1963]

Nothing wrong with thinking outside the box - if you trust him and you think it will work, why not . If he is a tidy operator then there will very little chance of anything going wrong mechanically so little chance of a falling out.

 

[bigw]

How much are you getting charged now for 160 acres? I cant see how it would be cheaper myself.

 

[Milkman]

€16000 a €100 acre.

 

[bigw]

Is that for a complete job?

 

[Milkman]

Yes

 

[bigw]

It wont be cheaper by the time you mow, rake, buckrake and maintain the gear. Unless your really interested then I wouldn't be bothering.

 

[bigw]

Try getting a better deal on price first

 

[pappuller]

we work on £50-60/ acre depending on distance from clamp, if you do your own mowing you should be able to save at least £10/acre. who stands maintenance and breakdown costs on the wagon ? and how much fuel will you use/ acre with it ?

 

[Milkman]

Bigw I think your missing my point, no big cheque to write, no maintenance no mowing, raking no diesel for me, the other man does all that. For all intents of purpose the wagon is his for five years till we pay it off.

 

[Milkman]

We are not vat registered

 

[bigw]

So you will buy the wagon and he uses it free of charge and does your silage in return?

 

[wasted years]

Not VAT registered but making 160 acres of silage?
How, Why?
Nothing wrong with your plan at all, I run a wagon and they cost virtually nothing to run over those acres, you are looking at about 6 days work per year.
Be interesting to know what effect such a purchase makes to your tax position?

 

[Milkman]

Yes

 

[Beef farmer]

Are you mad?

Yes!

 

[Milkman]

Not sure there would be a tax problem, as the taxman won't know wagon lives in his yard.

 

[ploughman1963]

and how much fuel will you use/ acre with it ?

somewhere between 1.6 and 2 litres fuel /ac depending on distance with 180 hp vario tractor

 

[Blue.]

As posted running costs are minimal.

Don't underestimate how much time you will spend maintaining and washing gear (maybe that's why my running costs have been minimal).

Silage kit takes up a lot of space in your sheds.

I bought an ex demo wagon 5 years ago,it's worked well for me,biggest challenge has been trying to get staff.