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Inflation

Started by welshnwilling

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  • #869712

     
    welshnwillingwelshnwilling
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     I was just looking through my 2005 diary for some info and came across some amazing figures. It’s only seven years ago but how thing’s have changed. It’s also amazing how soon we forget things.

    In 2005 fertilizer was 149, lambs were 2.30 kg/dw, store cattle 90 pence per kg, wheat straw 48, sheep cake 130/ton

    Everything has at least doubled in seven years, but are we better off ? No !

    #869713

     
    henararhenarar
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    Very true

    We have high prices not high profits

    And a bigger loss if anything goes wrong

  • #869714

     
    welshnwillingwelshnwilling
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     I’m guessing land values have also doubled in the same period (in this area at least).

    #869716

     
    TeslaCoilsTeslaCoils
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    welshnwilling

    Everything has at least doubled in seven years, but are we better off ? No !

     

    I’d say we are considerably better off than in 2005. Loading lorries of wheat and seeing the cheque for 1500 was not good times.

    Fert (AN?) at 149 vs wheat at 60? Happier this harvest year with urea at 280 and wheat sold for 190. 

    These are boom times for arable farming. However, land buying was a darned sight cheaper in 2005, and mt argument on another post holds, that the value inclrease in land since 2005 has eclipsed the total profit for all those years several times.

    #869715

     
    henararhenarar
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    welshnwilling

    land values have also doubled in the same period

    Land “prices” may have but that dont make it worth more to make money from,If anything it was to much then and is way to much now.

    Apart from the corn ground that is and as we have heard that will make even more money for the corn boys than before[;)]

    #869717

     
    henararhenarar
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    TeslaCoils

    AN?) at 149 vs wheat at 60

    Sounds good to me

    O the good old days[:P]

    #869718

     
    bovrilbovril
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    welshnwilling

     wheat straw 48,

    What’s it costing down your end of the world now then? I got less than that the last few weeks for my last hundred tons.

    #869719

     
    welshnwillingwelshnwilling
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     Last load was 87 delivered

    #869720

     
    markwmarkw
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    January 2005 monthly RPI figure was 188.9. Increased to 238.0 by jan 2012. A literal inflationonary rise of 26%. Historically prices double every 12 to 15 years to the consumer. If only that were true for the producer !

    #869721

     
    TeslaCoilsTeslaCoils
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    Harvest 2004 RL trials OSR yield = 4.2t/ha

    Harvest 2011 RL trials OSR yield = 5.3t/ha

    Crumbs, thats a 26% rise too. Nothing stands still. Businesses have cycles. Hard to argue that farming is not a good place to be right now.

    #869722

     
    peesie
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    Agreed.But how good? How many of s can nip out and buy a new tractor with our surplus for the year?Very few,I should think.If the baverage farmer earned,after reinvestment,the same as an average GP I would certainly agree that farming is a good place to be.

    #869723

     
    old mcdonald
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    It is not about money, it is about living. How many of you (and I deduce from the literary level of most posters that they are of above average intelligence) would swap your way of life for another 5,000 a year, or even more, on condition that you had to live in a) a detached house in a better part of town b) a semi on a “nice” estate c) a terraced house in a less salubrious part of town d) a flat?

    #869724

     
    TeslaCoilsTeslaCoils
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    My wife is a solicitor. She earns a good hourly rate.

    But sat on my sprayer yesterday, even at 24m, going at 12km/hr, I was covering some ground. I covered a good 500ac in a (long) day, and surely spray contractors must be on 4/ac? So what was my hourly rate? Or what could it be, working for others?

    All horses for courses mind.

    peesie

    If the baverage farmer earned,after reinvestment,the same as an average GP I would certainly agree that farming is a good place to be.

     

    Not really. Father in law is a GP. Lets see. Say a GP earns 100k. Lets consider what his surplus is after all of life’s essentials and tax. And assume he pays rent / mortgage to have a place equivalent to the rural houses we have, plus pny paddock etc. And our “reinvestment” is a very tax-efficient way of saving. Spend 25k on a pair of trailers, knock it off the tax, and lo and behold they loose very little when you come to sell them in 10 years time. Or certainly seems to be the case looking at trailers at farm sales.

    Lets assume also that a modern GP takes goodness knows how much debt, and countless years of not earning while studying to get their salary. They then retire at 60. Thats not many years of earning say 50k after tax is it? 

    So my surplus may be very little, but I am tucking 25k a year away into kit and have a house and surroundings non-farmers have to pay a packet for. I also get rainy days off. 

    I expect a GP has at least the same level of government bullshyte, red tape and arse covering to do as we do. So they have my sympathy.,…….those lazy teachers on the other hand…..

    #869725

     
    peesie
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    Tesla,

    trailers and rollers are ok,but other machinery isnt nearly so attractive.Do GPs pay half their salaries in tax?I’m not knocking GPs.I’m just pointing out that most farmers are way off what many would consider a fantastic income.I have a backlog of reinvestment in drainage and buildings to catch up with.Once thats done,If prices v costs are still ok,I might be a bit more comfortable.

    #869726

     
    TeslaCoilsTeslaCoils
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    I have no idea what their tax arrangements are. I would suspect that, like us, their self employed status might mean they have to reinvest in their practises eg disabled access, wear and tear, etc. The consideration was that a GP earns say 100k but clearly has costs, tax and business investment to make. In a similar way, a 150ac farm would have a similar income and also business investments etc to make. It’s whats left over that counts.

    If you have drainage to do, you probably own your land. So business decisions to buy / own land will have paid off for you with land price rises. I’m fairly happy as someone who owns (a small bit) of land to know that, over a period of time, it will appreciate by roughly inflation and pay me an income of 1.5% of current value. So I am happy to take a small cash suplus at the end of the year given I have a nice house / life with space for the kids, a business to invest in etc. If I were younger, I would take less income for more capital growth. When I am older, I suspect I will want more income less capital.Farming as I can see has always been an asset-rich but cash-poor proposition.

    I am a small tennant farmer with a dinky bit of my own. Comfortable to say that I am glad I am not a GP. Also happy to say that I would welcome a payrise for GPs if they promised to open in the evenings and weekends – ie when real people actually have time to go.

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