Taking on 200 acres.. how to finance it?

[Guiggs]

So I've been offered 200 acres of grazing on my doorstep. It really is a once in a lifetime opportunity for me as land just doesn't come up round here, certainly not on that scale to rent but that's going to take a significant amount of money to stock etc...
I'd be thinking of mainly putting sheep on it but cattle would come into thd mix as well.
Question is how would be the best way of going about it?
Obviously there's the bank but I'd rather not get involved with them... although nobody would recognise me in my balaclava

 

[dinderleat]

Onlyfans?

 

[Woolless]

So I've been offered 200 acres of grazing on my doorstep. It really is a once in a lifetime opportunity for me as land just doesn't come up round here, certainly not on that scale to rent but that's going to take a significant amount of money to stock etc...
I'd be thinking of mainly putting sheep on it but cattle would come into thd mix as well.
Question is how would be the best way of going about it?
Obviously there's the bank but I'd rather not get involved with them... although nobody would recognise me in my balaclava

One relatively cheap way into a lot of stock would be draft Shetland ewes. @unlacedgecko is the resident expert/masochist. But you've got to pay for them. What about contract rearing dairy heifers? Or 'custom grazing', as the yanks would call it?

 

[deere 6600]

Many years ago we got the chance of rented grazing not the best but ok bought 3/4 crop blackie ewes tipped to texel lambed well not to much extra work financially did really well for smallish capital outlay

 

[Hesstondriver]

depending on the length of agreement, start slow and build up.

can you cut it and sell hay / silage / standing grass crop ? can you sub let to a grazier (or another type of agreement that pays you, with out them being your stock to circumnavigate sub letting rules)

take in tack sheep / or rear heifers ?

 

[Werzle]

Bank would be my first port of call tbh unless your going down the route of livestock finance which will be dearer than the bank

 

[Mc115reed]

I had the exact same problem when I started out, so I took in other peoples sheep and I still do it now and it’s probably the most profitable part of my business

 

[Bald Rick]

So I've been offered 200 acres of grazing on my doorstep. It really is a once in a lifetime opportunity for me as land just doesn't come up round here, certainly not on that scale to rent but that's going to take a significant amount of money to stock etc...
I'd be thinking of mainly putting sheep on it but cattle would come into thd mix as well.
Question is how would be the best way of going about it?
Obviously there's the bank but I'd rather not get involved with them... although nobody would recognise me in my balaclava

Bank is probably the cheapest option .... although let it be said that they aren't as keen to lend to farmers as they were

Otherwise, I would try Novuna (Hitachi Capital as was) through a broker (or direct). They will lend for this type of thing although you will have to submit accounts if you are a new borrower.

 

[Tim G]

When we started here we took some tack sheep in the autumn, they grazed until about Christmas and that paid the rent for the first year.

 

[Mc115reed]

Bank is probably the cheapest option .... although let it be said that they aren't as keen to lend to farmers as they were

Otherwise, I would try Novuna (Hitachi Capital as was) through a broker (or direct). They will lend for this type of thing although you will have to submit accounts if you are a new borrower.

I tried the bank not too long ago and they weren’t keen at all..: the bloke on the phone couldn’t get his head round why I didn’t have a steady income stream all year round it was only 4-5 months of the year

 

[DRC]

Try Oxbury bank . Only lend to farmers

 

[Sharpy]

Do the markets in your area not finance stock?

 

[unlacedgecko]

One relatively cheap way into a lot of stock would be draft Shetland ewes. @unlacedgecko is the resident expert/masochist. But you've got to pay for them. What about contract rearing dairy heifers? Or 'custom grazing', as the yanks would call it?

Thanks for the tag.

There's loads of options.

Tack sheep or cattle will allow critical mass of stock right away. But from a biosecurity viewpoint I'd decide what you're going to own yourself, and then only get tack of the other species.

Banks will lend, but they want paid every month, and that doesn't always fit with ag cashflow.

Mart finance is not something I've got experience of. There's private investors, you can negotiate your own terms then.

Or vendor finance. Again, negotiate your own terms. I've 300 Shetland draft ewes I'd finance for you. Facebook or call me to discuss.

Draft ewes (of whatever type) and cull cows/bottle calves would be the cheapest way in to owning your own stock. But are more expensive in terms of inputs.

 

[S J H]

So I've been offered 200 acres of grazing on my doorstep. It really is a once in a lifetime opportunity for me as land just doesn't come up round here, certainly not on that scale to rent but that's going to take a significant amount of money to stock etc...
I'd be thinking of mainly putting sheep on it but cattle would come into thd mix as well.
Question is how would be the best way of going about it?
Obviously there's the bank but I'd rather not get involved with them... although nobody would recognise me in my balaclava

How long is the tenancy for ?

 

[beardface]

We took on similar acreage a couple years ago. Should be near enough up to numbers this next year. Mow and sell surplus as you build up your numbers is best way I found. That way you've got some nice aftermath to push lambs and ewes. I wouldn't be afraid of going to a bank. Just have a couple years cashflow to show them and a sound business plan. Even with rate increases money is still the cheapest it's ever been to borrow.

 

[A TEAM]

So I've been offered 200 acres of grazing on my doorstep. It really is a once in a lifetime opportunity for me as land just doesn't come up round here, certainly not on that scale to rent but that's going to take a significant amount of money to stock etc...
I'd be thinking of mainly putting sheep on it but cattle would come into thd mix as well.
Question is how would be the best way of going about it?
Obviously there's the bank but I'd rather not get involved with them... although nobody would recognise me in my balaclava

Hi ,we have 1000-1500 ewe lambs looking for contract farming,looking for someone to take off us early sept keep for year, lamb biggest and have back folling year production bonus?

 

[Pan mixer]

I did similar a 7 years ago, borrowed from a friend which is not always that ideal, fixed term loan for 5 years, built a beef shed, fenced a lot, put water on, didn't sell any heifers for a couple of year, sold some hay. Seemed to work.

 

[Skintagain]

If this happened to me tomorrow I would sell everything I have that I could do without I mean everything. The sheep would if half decent and then replace with a lot more Welsh drafts and put them to bfl for a fortnight and then charolais.

 

[S J H]

If this happened to me tomorrow I would sell everything I have that I could do without I mean everything. The sheep would if half decent and then replace with a lot more Welsh drafts and put them to bfl for a fortnight and then charolais.

But how long is the term? I can’t see the point if there‘s only 2 years of security

 

[The law of sod]

Guess all come down to how long you have it for,
The difference between having it for 2-10 years,
there would be different ways to go about it.