Start up costs

Hi,

Obviously this can depend on a lot of things, but could someone give me a rough idea of the start up costs when starting up with sheep and also the start up costs of setting up with dairy and beef. And also what the maintenance costs per year are per sheep or cow.

Again, I appreciate it will be different for each person depending on location, breed, whether things like sheep trailer and handling system are new or second hand etc, but will still be interesting to see how its different.
 

Hilly

Member
Hi,

Obviously this can depend on a lot of things, but could someone give me a rough idea of the start up costs when starting up with sheep and also the start up costs of setting up with dairy and beef. And also what the maintenance costs per year are per sheep or cow.

Again, I appreciate it will be different for each person depending on location, breed, whether things like sheep trailer and handling system are new or second hand etc, but will still be interesting to see how its different.
Just start with 3 million and when your down to one million your a millionaire not a multi millionaire can’t be that hard , this if farming with subsidy who cares about costs ,
 

Dave645

Member
Hi,

Obviously this can depend on a lot of things, but could someone give me a rough idea of the start up costs when starting up with sheep and also the start up costs of setting up with dairy and beef. And also what the maintenance costs per year are per sheep or cow.

Again, I appreciate it will be different for each person depending on location, breed, whether things like sheep trailer and handling system are new or second hand etc, but will still be interesting to see how its different.
A Wide open question, ok land and housing, if your lucky you know a farmer and they let you have a bit cheap or a small field comes up for sale I would start with sheep because you can handle them and they are less likely to kill you if you try to handle them without the proper equipment, then you need some basic shelter when lambing time comes up, some hay and straw if your fodder runs out and some form of lambing shed, then there is the sheep, ideally numbers by your ability to feed them from the grazing you can beg borrow or rent, cheaply.
Transport again either borrow or have someone that will transport them for you.
there are a million other little things that I skimmed over, and I didn’t talk about profit or cost,

this is why farming gets very few new farmers, especially ones that get no help from existing farmers or have jobs but start up as a side line.
It is possible to start up in all those animal enterprises, but the costs will vary widely and the amount of time until you make a living from it will vary vastly, a lot of first generation farms, spend all there time investing and expanding to get to the point where the profit levels and work load start to make sense, without a second job, but the better ones try for the full profit, ie sell to the public. But that comes with costs and regulations all of there own.
so the right question would be how many years until I can become a full time farmer if I build up from zero.
There will be people on here that may give you a clue on that and tell you how hard it is to start up.

my guess is very few first generation farmers give up the day job fully. It’s more a transition to self employed and contracting to local farmers, over time. The farm will eat your profits as you put them back in, to expand and get equipment as and when you can. Be it second hand from farm sales or new land or buildings.
So to answer you, as much money as you have, and shed loads of your time. And likely your lifetime to get setup to resemble a small farmer, only for the next generation to do the same, make a living, while keeping on top of maintenance if they are doing it right.
the secret is find the right work life balance, and living modestly within your means, For a happy life.
And be a business man about farming but also don’t go down the Rabbit hole of counting every penny to work out every profit or loss exactly, at least not every day, but an annual review is good business. Variation in markets can make profits vary yearly but farming means your in it for the long haul, so while you need an eye of costs and profits to increase your chances of profits is good, it will not protect you from loses entirely, a dead animal is a dead animal there is no profit in that.
 
Location
Ceredigion
Can someone answer why you can almost sell land overnight now at £10,000 acre yet in the 60ts it was almost impossible to sell land at £30 . Unless it was for planting Trees
 

Hilly

Member
Can someone answer why you can almost sell land overnight now at £10,000 acre yet in the 60ts it was almost impossible to sell land at £30 . Unless it was for planting Trees
BecAuse their is a lot of money out their in the big bad world and a lot more cheap money to be borrowed and lot more understanding of tax rules and a lot more understanding of investing and land is a good long term investment, and mentality of British like to own land etc etc etc
 
Location
Ceredigion
BecAuse their is a lot of money out their in the big bad world and a lot more cheap money to be borrowed and lot more understanding of tax rules and a lot more understanding of investing and land is a good long term investment, and mentality of British like to own land etc etc etc
Seems the bank are quite happy to give people a million pound interest only loan, yet in 1964 Dad could not borrow £1000 to start up a diary farm on 100 acres . To high a risk the Bank thought . It did not stop him . But he had a few visits to the Sweat Box that he called it in the years to come

Dads success was helped by the Beeching Axe
He built Cubicle Sheds with cheap sawn up Sleepers and a big Hole dug in the bank lined with sleepers for the silage, a Fulwood milking Bail and he was away
 
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neilo

Member
Mixed Farmer
Location
Montgomeryshire
Seems the bank are quite happy to give people a million pound interest only loan, yet in 1964 Dad could not borrow £1000 to start up a diary farm on 100 acres . To high a risk the Bank thought . It did not stop him . But he had a few visits to the Sweat Box that he called it in the years to come
A bank won’t lend a £ million to buy land unless you have a sizeable deposit and a valuable asset that they can take a charge on for security.

Perhaps if your Dad had had that in 1964 then they’d have jumped? Getting the first bit has always been the hardest, then you are able to borrow yourself into trouble.
 

Drillman

Member
Mixed Farmer
Setting up for sheep shouldn’t cost a fortune

some leccy fencing gear, a dog, a stick, some hurdles a trailer and sumat to pull it with and your about there.

obviously you need suitable sheep some grazing ground and a shed to put them in at lambing time be nice.

As time goes on a quad bike be handy (until it gets nicked) and a few other things but I would say it’s a low cost way of farming.

Dairy farming seems to need acres of concrete, acres of sheds, and a lot of other expenses before the cow juice starts flowing....
 

unlacedgecko

Member
Livestock Farmer
Setting up for sheep shouldn’t cost a fortune

some leccy fencing gear, a dog, a stick, some hurdles a trailer and sumat to pull it with and your about there.

obviously you need suitable sheep some grazing ground and a shed to put them in at lambing time be nice.

As time goes on a quad bike be handy (until it gets nicked) and a few other things but I would say it’s a low cost way of farming.

Dairy farming seems to need acres of concrete, acres of sheds, and a lot of other expenses before the cow juice starts flowing....
Sheep don't need sheds.
 

toquark

Member
I worked out that including the purchase price of the farm, our semi-commercial flock has worked out about £5000/ewe to establish. That doesn't include interest on the loan.

The benefit of course is that now I can legitimately engage in activities such as bashing banks, moaning about the general public and complaining about the weather. So every cloud.
 

AGCO reports sales increase of 43.5% compared to 2020 figures

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Written by Agriland Team from Agriland

The tractor manufacturer AGCO, which consists of brands such as Challenger, Fendt, GSI, Massey Ferguson and Valtra, reported its results for the second quarter ending June 30, 2021.

Net sales for the second quarter were approximately $2.9 billion, an increase of approximately 43.5% compared to the second quarter of 2020.

AEM

Reported net income was $3.73/share for the second quarter of 2021, and adjusted...
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