Once a day milking

I used to rent ground for silage under new ownership this year and he approached me and said he wouldn’t rent the ground to me but he would sell me grass for silage as he wouldn’t incur tax that way. Something for you to think about
 
DaDonegalLad said:
I used to rent ground for silage under new ownership this year and he approached me and said he wouldn’t rent the ground to me but he would sell me grass for silage as he wouldn’t incur tax that way. Something for you to think about
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He must be his own tax advisor? Unless you pay him cash for the grass , and why should you pay tax , to get his money , so that he doesn't pay tax ?? Also you won't have map acres , to carry the extra stock , that this extra ground will allow you to carry . If you don't need the map acres , you don't need the land .

Lease it long term from him . Then he shouldn't have to pay tax , depending on his circumstances.
 
jf 850 said:
He must be his own tax advisor? Unless you pay him cash for the grass , and why should you pay tax , to get his money , so that he doesn't pay tax ?? Also you won't have map acres , to carry the extra stock , that this extra ground will allow you to carry . If you don't need the map acres , you don't need the land .

Lease it long term from him . Then he shouldn't have to pay tax , depending on his circumstances.
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I have a lot to learn about this stuff but I paid him cheque and he gave me an invoice for the grass/silage. This man would be very clued in, will not lease it long term to me after the two cuts of silage he stocks the ground.
 
DaDonegalLad said:
I have a lot to learn about this stuff but I paid him cheque and he gave me an invoice for the grass/silage. This man would be very clued in, will not lease it long term to me after the two cuts of silage he stocks the ground.
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Each man knows his own business. Hope it works out OK for you .
 
jf 850 said:
He must be his own tax advisor? Unless you pay him cash for the grass , and why should you pay tax , to get his money , so that he doesn't pay tax ?? Also you won't have map acres , to carry the extra stock , that this extra ground will allow you to carry . If you don't need the map acres , you don't need the land .

Lease it long term from him . Then he shouldn't have to pay tax , depending on his circumstances.
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If he has availed of stamp duty relief on the purchase of the farm, he must work the land. Selling a crop of grass qualifies for that. I'd imagine he doesn't want to pay back the stamp duty on the purchase.
 
candor said:
If he has availed of stamp duty relief on the purchase of the farm, he must work the land. Selling a crop of grass qualifies for that. I'd imagine he doesn't want to pay back the stamp duty on the purchase.
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No he paid stamp duty on it, made it a point to tell me that.
 
podge 23 said:
Yes I agree would I lease it as a dairy set up or would I cut that part out and just lease it as a dry stock unit instead ?
I see a set up there on Agri Land in Donegal there a few weeks back where the land mobility leased a dairy farm but that was a fine straight forward set up I'd say.
Grasstec charge €300 to come out and go through things .
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300 is a very small price to pay for advice, that’s the best decision you’ve made in a while.

Don’t limit yourself to just grasstec either, speak to several lads

You need to find out what the farm would make to lease. And whatever you do lease it as a dairy farm, I see fellas spending hundreds of thousands doing up leases farms

What are dairy farms making around the country? I’m hearing 300+ and the SFP paid back to the owner.

Think about that @podge 23

Suss out what it’s making local to you.
 
Also @podge 23 dont forget if you get out that you have 100 cows and followers to sell, that’s over 200k worth - that’s a nice wedge!!!!

You’d need to talk to accountant also to try to minimise tax on that. You need to talk to accountant to discuss the financial implications of your several options
 
There has been great advice posted on various threads over the past few years on issues that you raised. Have you implemented any of it on the farm?
 
DaDonegalLad said:
I used to rent ground for silage under new ownership this year and he approached me and said he wouldn’t rent the ground to me but he would sell me grass for silage as he wouldn’t incur tax that way. Something for you to think about
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If he has a farming income as opposed to a rental income he can offset expenses against it.
 
No I haven't really told my father as such yet .I wouldnt get €300 anyway 220 to 250 max for a dairy lease I suppose my ground is heavish .
 
podge 23 said:
No I haven't really told my father as such yet .I wouldnt get €300 anyway 220 to 250 max for a dairy lease I suppose my ground is heavish .
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There was a dairy farm leased as a going concern not too far from you a few years ago for a reported €400 an acre. I don’t think things have changed much since.
 
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Where was that farm then MID CORK ?
Well I am hoping when grasstec come out they might scare him into getting out of cows and I suppose I would use that as an excuse to exit .
 
podge 23 said:
Where was that farm then MID CORK ?
Well I am hoping when grasstec come out they might scare him into getting out of cows and I suppose I would use that as an excuse to exit .
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What will happen if he comes out and tells you that you need a new shed to solve sorting out cows daily and to fund it you will need to expand by another 30 cows?
Imv it all starts and ends with you having this convesation with your father. You have discussed a broad range of options with us over the past few years while your father is still non the wiser to all this.
 
podge 23 said:
Where was that farm then MID CORK ?
Well I am hoping when grasstec come out they might scare him into getting out of cows and I suppose I would use that as an excuse to exit .
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If that's how you feel I think you've already made your mind up. If you are not looking for a solution to your dairying layout/system you won't find one.
Just one thing Id say from reading your comments. And this applies to whatever you decide. Don't belittle what you have there are plenty will do that for you. You are in a position alot of lads would love to be in. I'm sure a lot of work was put in to get things to where they are now, by your father and whoever before you, albeit maybe not ideal by today's standards.
If cows are not for you fair enough but that doesn't mean someone else would not see potential in what you have for leasing etc. Don't rule anything out, and best of luck.
 
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