HOW MUCH MONEY is my farming addiction going to COST ME?! | Predicting the FUTURE via a CASHFLOW!
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- เผยแพร่เมื่อ 7 ก.ย. 2024
- I like to try and bring something different to TH-cam and this week we defiantly achieve that! Join me as I try and predict the future by doing a 6 month cashflow!
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I have to say it Andrew. Your channel is literally the fastest clicked on my timeline and I only have like a minuscule amount of background in farming. Really love the videos and the insight as well. Can’t imagine it’s an easy feat to do every week so I just want to show my appreciation. Best wishes from galway
Honestly, thank you very much! It was a lot of work but the support of people makes it more than worth it! 🫡
There's not another business that I know off that who buys a product of you and tells you what they are going to pay you(milk), I think you should do a video on that some time....
I know it would make a good video but I don't have any way to change that, I will have a think!
Great to see another very open and honest video. Seldom see that nowadays.
A lot of the same, I want to try and do something different!
Love the transparency, it’s what is needed. I don’t think any other industry operates with a CIA level of secrecy like farming. Machinery in particular is wild, it’s infuriating looking at pages and pages of online advertisements with POA.
Agreed 👍.
I avoid all poa , 12345, 1, and all free ads.
Dealers lose so much business from me because of this.
30 yrs self employed abroad educates you so much.
Price isn't everything.
Farming really is way too secretive!! I agree with machinery dealers doing POA also, they just want to try and screw someone over!
@@FarmTheoryNI Yep, give them carte blanche to add crazy dealer mark ups which they can discount to seem like they are doing you a favour. It’s anti competitive.
Someone should make a website like car wow for machines so the dealers have to fight for their sale like it’s a tender.
Great video. Cashflow is so important to track. I started it 18 months ago for our household spending and it made a massive difference to our life, cutting out pointless spending and reducing bills.
I’m not surprised by that prediction, input costs outstripping milk price, it needs a 5 on the front of it
Such an interesting video! My boyfriend farms beef and sheep at home, and he's been slowly expanding the farm so he can be full-time. I am going to help him create cashflows like this, so he can better plan future growth. Thanks so much for the inspiration. Would be highly interested in more financial videos like this.
Management is terrible in farming (not all). I didn't come from a farming background and was shocked how much money is wasted.
As a young lad new to farming I was able to save thousands by switching suppliers, only to be told that, "we have been buying from that family for many years now" and should continue too.
I couldn't beleive it. Keep getting over changed by the guy in the next village as that is what grandad used to do....
Eventually the farmer gave in, I was able to take over and we were thousands better off. It shouldn't have been a battle though.
Enough annoyance of mine is spending more on tractors/machinery etc because dad and grandad have always bought red/green/blue.
Rant over 😊
Loyalty gets you nothing! Farmers need to price between suppliers much more!
Excellent. Not many people want to talk about this and it is not profit as you say it is how you bank balance will vary throught the year based on the bills and cheques. It also lets outsiders see the decisions a farmer has to make. Do you take the money out ? do you invest it into something like drangae, new equipment or livestock . . all of which will affect the following year facinating
Good video Andrew. Good to see you’re not following the same trend of being terrified of the neighbours knowing something about your business. I think at times like you guys are having in agriculture in the UK and Ireland the sharing of ideas and a higher level of focus on the actual performance of the business has never been more important. Hard to see how anyone who isn’t crunching the numbers regularly will survive now that the single farm payment has gone. Keep up the good work
Thank you! My experience when I was younger was that the good farmers wouldn't share anything, they just wanted to keep the information to themselves!
Admire your honesty and openness
The support helps! 🤣 I was a bit nervous about this one!
@FarmTheoryNI great think for others to see how u operate and plants ideas in others heads should they copy or adapt to suit themselves
Good work Andrew, I'm sure there are plenty of wives/partners who would like to be part of this process of understanding the financial realities and share the burden and stress it contains. Openness can save lives.
Understanding your business reduces the stress massively in my experience!
Good to see someone talking about important issues in farming. Keep it up
Thanks, will do!
I really enjoy your channel. Having just sold my milking cows it’s a bit more challenging than I thought getting out of the routine of milking
Thank you! I'm sure you miss the routine of achieving something every day!
If i may,why did you sell all your cows?not enough profit in it?
If you could and were happy to make a template available that would be handy a good tool for many to use.
I will do!
Time spent in the office is one of the best uses of time on the farm. Been doing cash flows now for the past 5 years. Would recommend that all farmers spend time on them.
Absolutely agree!
Such a great video...talking about money seems such a taboo in farming circles...
It definitely is, however I just make videos about what I want. 😅
Fantastic video, thank you for your willingness to share, I wish there was more like you in the industry.
Great video. Farming is a business whether people admit that to themselves or not… I’m not a farmer but come from a farming background and worked on farms… I had no land to get from previous generations and certainly couldn’t buy a farm. As a PAYE worker I can relate to your bank account ups and downs, January is always a dreaded month… most of the others aren’t wonderful either. Keep up the good work.
At last honesty of reality in farming, as expected from FarmTheory. Along with the summer memory of the wellie boot slap on bare legs. Brilliantly presented cash flow analysis. Really enlightening and we see how supermarkets rip the industry off. Your accountant must cower in your presence. Ps Was it lab based or was it studio based?
Thanks! I don't understand the last bit. 😅 I think I recorded it in both the lab and the studio. 🤣
Excellent video , i was just saying to someone the other day if we went on dragons den with a buisness idea of farming and showed the profit/loss they would kill themselves laughing at such a stupid buisness idea
My wife worked outside of farming , as a product designer....when they would work on a new product and take it to the likes of argos...if argos couldn't get a 50% profit margin out of it, it would be shelved!
@RobertPhilpott-vr6wd That's how we should operate
I 100% agree, farming is such a rediculous business model. 🤣
Great Video, as a Bank manager looking after farmers for 25 years I agree with you 100% Thanks for sharing
Thanks for watching!
Information is power. As Jan is a lean month, perhaps a rebalance on payment on some of the lager bills
The biggest issue for Jan is the combination of an uncertain winter milk price and an uncertain tax bill, both them variables will be clear in a month or two and allow better planning.
very interesting video. I have learn a hole lot from that will have to give it a go on are own farm.keep up the great videos
Will do! 🫡
Farming makes no business sense to me I think most farmers have there head in sand and need to be honest that's 90 percent our not making any money just treading water
Imagine starting now, buying land, equipment, animals etc, how much money needed and what the ROI on that money is,
@vxnova1 the figures don't make sense even with the farm standing you zero that's what they miss
It's a terrible return on investment
100%, if you own a farm, you'd make way more money just selling it, investing the money and doing a simple 9-5 job if you even needed the money! But the life style is what keeps farmers going as once you're out of it, you'll never get back in.
Interesting video we have beef cattle and sheep on a small scale and im very grateful to have a full time job as our accounts can be depressing to say the least and with the reduction in farm payments i can't see it improving especially with lamb prices collapsing and beef being the gamble that it is 🤔
Another very informative video Andrew. Great channel keep up the super work.
Thank you! Appreciate it!!
Something we should all definitely do more of (we literally just wing it every year) is there a template on excel that you can download or have you made that yourself
I made this one, I should put it online for people
Class video Andrew, really interesting 👍Would you know of any good templates to download for a cash flow spreadsheet?
I need to upload the one I use.
Excellent content 👍
Good stuff
Good video. Very honest
Good man himself really.enjoy.watching video least honest
As a dairy farmer producing all year I believe you should work out the literage cost of production of both periods of milk . Unless winter milk is a serious spike price higher I cannot see how it pays.
Also, NO WAY is farming a business. If a farm's production is going through the livestock market, granary, meat factory or dairy it cannot exist as a business. It is a retail cost of production for a commodity reward. .
Name any business outside your farm gate that has that financial profile.
The other reason it is not a business is because most farmers dont want to know about food, added value, the consumer or making a living from food, ie retail prices Recieved.
It is just staggering that most farmers today are fed from the supermarkets and making them stronger at their own expense.
Finally do you know or want to know how many hours you work.
This might read as harsh but that's not the intention. People HAVE to have food. What an opportunity for a serious number of farmers to engage the consumer.
The increased cost of production is offset against increased production where grazing in spring limits herd size. Housed high output systems definitely make more money at the current milk price. Farming is obviously a business, processors are our customers.
Fantastic stuff again, fair play for sharing financial stuff like this. There is a young Iowa farmer called Cole the Cornstar who has done similar business side of farming videos sharing his accounts and kind of reminds me of some of your videos, although Iowa corn farming is a lot different to Irish Dairy!
He was a big part of why I done this! 😅 I like his videos back in the day!
i watch tom pemberton a bit and he will openly say that income from his youtube is paying for all his improvements on his farm also olly bloggs has just purchased 2 new Fendts and quadtrac and he says ah youtube is paying for this........the reality is farming doesn't pay and i admire you for trying to do everything right and doing cash flows and profit and loss yet it's the things we can't control mainly the weather that makes the most difference to our profit or loss situation
You can make money farming, it's just very difficult. Easier to make money on TH-cam. 🤣
I see I am not the only one getting shafted by the NFU for insurance. Utter disgrace. It’s also very difficult to budget for new machinery. I went this week to look at purchasing a new piece of kit and it has nearly doubled in price. Couldn’t believe it. No justification for it.
Surprised how open you are with financial information. 👍. Would you happen to know what your electric is costing per litre of milk? I believe ours is 0.5ppl with having solar panels and (i think) 50kw of batteries in.
It is 1.2ppl, 55% of that cost is heating water for the wash cycles.
Another very interesting video 👍🏻
Top man,
You really do need to have at least a seasonal budget plus one eye on a Tax bill at the end of the year,
It helps alot!!
Good show
Thanks!
Andrew are you using power bi as well as sheets for your calculations? Love the breakdown excellent work
Nope, just basic spreadsheets. The data is from my own software which is coded in python
Thanks for sharing. You might have said it but have you included all labour costs including your dad and yourself. I don’t want to know a figure just wondering if it’s included. Maybe you see your father not being profitable before you arrived home but I’d say he was doing fairly ok.
Yep, what we take is included. 👍
Hi Andrue what program are u using as I badly need something to work off of
It's my own software, I will get the cashflow template on the website soon. 👍
How are you getting on with your kerneland mowers? I'm thinking of buying a kerneland plain mower.
I really like them. The telescopic arm on the 3336 is brilliant
@@FarmTheoryNI thanks for replying how do you find they cut with the round discs instead of oval discs. Have you had any issues?
Ah lad , the shorts😮😮😂. Shorts aside an excellent video as usual.
Glad you like them!
What you mean con acre to pay, do you use other software other than excel, I like the money/planning of the business and your reasoning (i dont always agree with you)👍video
Rent for the land.
What's "the 12th?" Is it some sort of underground pagan festival? Or is it the 12th day of Christmas celebrated 5 months early? I'm sure it's not one of those obscure commemorations of a war that was won centuries ago. I mean, that'd be ridiculous, wouldn't it?
It's a wonderful day of cultural celebration. 😅
Start grass measuring and cut that meal usage 😉
😅
I think overestemistic should be a new word, 😂
I agree!! 🤣
The most frightening thing about your spreadsheet is the fact that you have an excellent computer between your ears, know your fertilizers, make great silage and resseed a lot. I wouldn't like to be of average IQ, making average silage on old leys with expensive ferts and milking average cows in an old parlour.
Our farm was below average for profit per cow when I came home, it was almost impossible to invest
When.going millionaire out all.this work