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Profits are low relative to the capital required for the purchase of =
cattle, machinery and land. I suggest therefore you have at least enough =
equity to pay cash for cattle and machinery, and a very tidy deposit for =
the land. Yes that will require a lot of money, but having experience =
with my clients (and it may be of interest I am a - retired - dairy =
farmers' son) that is what it takes. If you don't have that kind of =
cash, and you are confident in your skills, maybe lease a farm for a =
while as leasing land as a percentage of the land value is usually less =
than interest, at least in Gippsland. Also you can still move and change =
your mind without waving goodbye to your hard earned in stamp duty and =
commissions.
I have seen several times people have wanted to buy their own farm so =
much that this became the overriding goal. But it shouldn't because they =
forgot that financially it has to stack up. You could get into a farming =
business with little money, eg lease a farm or sharefarm; get a loan for =
the tractor, ute, 4 wheeler; go to Cowbank to lease cattle or use family =
to secure a bank loan for cattle. But dairying, and for that matter I am =
struggling to think of any business, where the profits are high enough =
where you could survive for very long when everything used in the =
business is financed. In time, people suffer emotionally and personally =
if they are under constant pressure.
If you read the first paragraph again and that reflects where you =
are/will be when you buy, go for it.
In the mean time, start breading up a herd on the farm your managing or =
lease a paddock and save, save and save some more.=20
Matt Stewart CPA, Tax agent
Victorian Farmers Accountants
Nothing to do with the VFF
Pakenham 59417514=20
----- Original Message -----=20
From: Shane & Belinda Stevens=20
To: vicdairy-l@unimelb.edu.au=20
Sent: Monday, August 14, 2006 8:15 PM
Subject: Whats next?
My wife and I are currently managing a large dairy operation in =
southern NSW and are in the process of putting together our plan for the =
next 5-10 years. We are hoping to purchase a herd and eventually a farm. =
Just wondering what experiences others have had on their own path to =
farm ownership. What should we be looking for and more importantly what =
things should we be trying to avoid.Have spoken to alot of farmers and =
farm advisors already but we believe the more information we can get =
from others who have already been through or are still going through =
something similar the greater our chance of success.
Any thoughts and ideas would be greatly appreciated.
Shane and Belinda Stevens
COROWA NSW=
--Boundary_(ID_x/iYQ8M6yk6+D2bBcYvg4Q)
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<BODY bgColor=3D#ffffff>
<DIV><FONT face=3DArial size=3D2>Profits are low relative to the capital =
required=20
for the purchase of cattle, machinery and land. I suggest therefore you =
have at=20
least enough equity to pay cash for cattle and machinery, and a very =
tidy=20
deposit for the land. Yes that will require a lot of money, but having=20
experience with my clients (and it may be of interest I am a - =
retired -=20
dairy farmers' son) that is what it takes. If you don't have that =
kind of=20
cash, and you are confident in your skills, maybe lease a farm for a =
while as=20
leasing land as a percentage of the land value is usually less than =
interest, at=20
least in Gippsland. Also you can still move and change your mind without =
waving=20
goodbye to your hard earned in stamp duty and commissions.</FONT></DIV>
<DIV><FONT face=3DArial size=3D2></FONT> </DIV>
<DIV><FONT face=3DArial size=3D2>I have seen several times people have =
wanted to buy=20
their own farm so much that this became the overriding goal. But it =
shouldn't because they forgot that financially it has to stack up. =
You=20
could get into a farming business with little money, eg lease a farm or=20
sharefarm; get a loan for the tractor, ute, 4 wheeler; go to =
Cowbank to=20
lease cattle or use family to secure a bank loan for cattle. But =
dairying, and=20
for that matter I am struggling to think of any business, where the =
profits are=20
high enough where you could survive for very long when everything used =
in the=20
business is financed. In time, people suffer emotionally and personally =
if they=20
are under constant pressure.</FONT></DIV>
<DIV><FONT face=3DArial size=3D2></FONT> </DIV>
<DIV><FONT face=3DArial size=3D2>If you read the first paragraph again =
and that=20
reflects where you are/will be when you buy, go for =
it.</FONT></DIV>
<DIV><FONT face=3DArial size=3D2></FONT> </DIV>
<DIV><FONT face=3DArial size=3D2>In the mean time, start breading up a =
herd on=20
the farm your managing or lease a paddock and save, save and save =
some=20
more. </FONT></DIV>
<DIV><FONT face=3DArial size=3D2></FONT> </DIV>
<DIV><FONT face=3DArial size=3D2>Matt Stewart CPA, Tax =
agent</FONT></DIV>
<DIV><FONT face=3DArial size=3D2>Victorian Farmers =
Accountants</FONT></DIV>
<DIV><FONT face=3DArial size=3D2>Nothing to do with the VFF</FONT></DIV>
<DIV><FONT face=3DArial size=3D2>Pakenham 59417514 </FONT></DIV>
<DIV> </DIV>
<DIV>----- Original Message ----- </DIV>
<BLOCKQUOTE dir=3Dltr=20
style=3D"PADDING-RIGHT: 0px; PADDING-LEFT: 5px; MARGIN-LEFT: 5px; =
BORDER-LEFT: #000000 2px solid; MARGIN-RIGHT: 0px">
<DIV=20
style=3D"BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: =
black"><B>From:</B>=20
<A title=3Dbelindarstevens@bigpond.com=20
href=3D"mailto:belindarstevens@bigpond.com">Shane & Belinda =
Stevens</A>=20
</DIV>
<DIV style=3D"FONT: 10pt arial"><B>To:</B> <A =
title=3Dvicdairy-l@unimelb.edu.au=20
=
href=3D"mailto:vicdairy-l@unimelb.edu.au">vicdairy-l@unimelb.edu.au</A> =
</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Sent:</B> Monday, August 14, 2006 =
8:15=20
PM</DIV>
<DIV style=3D"FONT: 10pt arial"><B>Subject:</B> Whats next?</DIV>
<DIV><BR></DIV>
<DIV><FONT face=3DArial size=3D2>My wife and I are currently managing =
a large=20
dairy operation in southern NSW and are in the process of putting =
together our=20
plan for the next 5-10 years. We are hoping to purchase a herd and =
eventually=20
a farm. Just wondering what experiences others have had on their own =
path to=20
farm ownership. What should we be looking for and more importantly =
what things=20
should we be trying to avoid.Have spoken to alot of farmers and farm =
advisors=20
already but we believe the more information we can get from others who =
have=20
already been through or are still going through something similar the =
greater=20
our chance of success.</FONT></DIV>
<DIV><FONT face=3DArial size=3D2>Any thoughts and ideas would be =
greatly=20
appreciated.</FONT></DIV>
<DIV><FONT face=3DArial size=3D2></FONT> </DIV>
<DIV><FONT face=3DArial size=3D2>Shane and Belinda =
Stevens</FONT></DIV>
<DIV><FONT face=3DArial size=3D2>COROWA =
NSW</FONT></DIV></BLOCKQUOTE></BODY></HTML>
--Boundary_(ID_x/iYQ8M6yk6+D2bBcYvg4Q)--
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