PARK FARM
CURRY
MALLET
Harry Holt
Farm Business Plan
10/11/2015
Harry Holt ‐ Farm Business Plan Table of Contents Table of Contents .................................................................................................................................... 1 Business Plan ........................................................................................................................................... 2 Foreword ............................................................................................................................................. 2 The Process ......................................................................................................................................... 4 Plan Summary ..................................................................................................................................... 7 Cash Flow Summary Year 1 – Year 3 .................................................................................................. 9 Conclusion ......................................................................................................................................... 12 Annex 1 – Physical Appraisal ................................................................................................................. 13 Annex 2 ‐ S.W.O.T ................................................................................................................................ 29 Strengths ........................................................................................................................................... 29 Weakness .......................................................................................................................................... 29 Opportunities .................................................................................................................................... 30 Threats .............................................................................................................................................. 30 Annex 3 – Net Margins and Deciding on an Enterprise ........................................................................ 30 Choice of Enterprise: ......................................................................................................................... 33 Annex 4 ‐ Physical Plan ......................................................................................................................... 36 Annex 5 – Gross Margins and Fixed Costs ............................................................................................ 47 Enterprise Gross Margins .................................................................................................................. 47 Annex 6 ‐ Machinery Inventory & Building Costs ................................................................................. 51 Annex 7 – Fixed Costs ........................................................................................................................... 52 Annex 8: Whole Farm Budget ............................................................................................................... 57 Curriculum vitae ‐ Harry J. Holt ............................................................................................................. 58 Cash Flow Year 1 ............................................................................................................................... 61 Cash Flow Year 2 ............................................................................................................................... 64 Cash Flow Year 3 ............................................................................................................................... 67 Bibliography .......................................................................................................................................... 71 1 | P a g e Harry Holt ‐ Farm Business Plan Business Plan Foreword We were set the task of producing a viable business plan for a dairy farm in Somerset. The aim of this project was for us to gain an understanding of the planning and presentational skills required to carry out this task. The business plan we produced was put together in the spring of 2015 and therefore all figures shown within reflect those of the time, such as milk price. To put emphasis on this point, we believe that the current milk price crisis would present even more of a challenge than when these figures where put together. The challenge is for us to budget carefully using lean management techniques in order to make savings where possible without neglecting livestock health or forsaking the high standards to which we both operate. As it is shown in our budget, the overdraft in which we have drawn up is beyond that of which we would be comfortable with borrowing. However, under the circumstances which this project was set with the lack in milk price and the requirement for all our borrowings to be taken under an overdraft would be unlikely with the use of long term loans for many items. Although not reducing the amount borrowed, by assigning much of this money to long or medium term loans makes managing easier and give more security to both parties. 2 | P a g e Harry Holt ‐ Farm Business Plan The Farm Curry Mallet ‐ Somerset 









138Ha good clay soil Currently milking 220 Holstein Friesian dairy cows producing 9,000L Modern DeLaval 28/28 herringbone parlour 200 cubicles with further straw yards Mix old and new buildings alongside each other 80 beef reared and finished out of dairy cows Farm house and flat onsite Good cattle tracks to most fields Water piped to most fields Fencing in moderate condition 3 | P a g e Harry Holt ‐ Farm Business Plan The Process Firstly, a physical appraisal of the farm was carried out, to determine which enterprises we foresaw to be most practical and profitable. From that appraisal we investigated into which enterprises would be the most profitable. Enterprise
Yield/Ha
GM/Ha
£/Ha
Adjustments
GM/Ha after
Adjustments
£/Ha
Net
Margin/Ha
£/Ha
Winter
Wheat
8.4
636
Straw 4T/Ha
@£50/T
836
486
Winter
Barley
6.9
467
Straw 3.5T/Ha
@£70/T
712
362
Winter
Beans
4
649
N/A
649
299
Winter Oil
Seed
Rape
3.4
462
4T/Ha
@20/T
542
192
Oats
6.3
490
4T/Ha
@£30/T
610
260
4 | P a g e Harry Holt ‐ Farm Business Plan Enterprise
18 Month
Beef
Dairy Cows
Dairy
Heifers
calving @
2years
Lowland
Sheep
Yield
LSU/Hd
Adjustment
Info
Silage/Hd/T
GM/Ha
after adj
£/Ha or
GM/Hd
456
0.7
6
456
1252
1.0
10
1252
120
20
1112
N/A
659
1.2
6-8
659
84
20
555
N/A
26
0.15
0.25
26
Contractors
for silage 3
23
N/A
7000
litres
autumn
calving
GM/
Head
Associated
fixed costs
assume
silage £12/T
Contractors
For silage
72 for FYM
20
Net
Margin
/Hd
Net
Margin/
Ha
£/Ha
346
Using the above charts, which contain figures taken from the John Nix Pocketbook allowed us to see which enterprises are most profitable. With dairy showing a net margin above all other enterprises we decided to focus our attention on this enterprise and use the beef as a logical adjacent enterprise. 5 | P a g e 3.14x
364 =
£1143/
Ha
2.2x
1112=
£2446
/Ha
2.2x
555=
£1221
/Ha
14.7x
23=
£338
/Ha
Harry Holt ‐ Farm Business Plan Gross Margin Summary of Selected Enterprises The following tables are a simple breakdown of both the dairy and beef enterprise’s Gross Margins with figures taken from John Nix 2015. Dairy Cows Total Output Total Variable Costs Gross Margin Total/Year £418,880 £231,057 £187,823 £/Cow/Year £1,905 £1,050 £854 Beef Total Output Total Variable Costs Gross Margin Total/Year £76,245 £36,828 £39,417 £/Cow/Year £1,105 £533 £571 From here we knew what our cropping would be as we decided to simplify our production and focus on growing high quality forage for the dairy and beef enterprises and not to grow arable crops. We made this decision due to the adequate shed spaces available to increase stocking rate and the need for expensive equipment if we chose to grow combinable crops as well. We believed that with the structure of the farm, having good livestock buildings, good access too much of the farm and ability to grow good quality forages naturally leant towards a dairy and beef based farm. As well as this the location of the farm being so close to a number of markets of all trades including: 




Livestock markets – for the purchase and selling of cattle Feed suppliers Dairy Companies – Muller Wiseman, Dairy Crest and others Good Straw importing network Choice of Veterinary companies As well as looking at the figures, we both wanted to farm dairy cows and beef. My background of growing up on a dairy farm and Rachel’s keen interest in beef animals gave us a strong desire to farm an enterprise in which we truly had passion. In times of hard economic climates, sometimes it could be the passion and joy gained from nurturing and producing a product that offers a real interest to that person that helps to see a business through the difficult times. 6 | P a g e Harry Holt ‐ Farm Business Plan Plan Summary Taken from the appendix, this plan gives an outline of our intensions for setting up a business at Park Farm. On successful tender of the farm we intend to build up a herd of 220 high yielding Holstein Friesian dairy cows producing 8000 litres/year, as soon as possible to start milking them and begin a positive cash flow with milk sales. We intend to make an offer to the current tenant Mr. Down on purchasing the cattle he already milks there. This will minimise disruption and reduce a lot of time spent searching for animals and our numbers will be immediately up, which will therefore mean our milk sales will be up increasing income. If a deal cannot be reached then we will purchase the animals at the local livestock markets. We budget all initial animal purchases to cost £264,000 and machinery purchase will add £88,000. As well as this we will be purchasing silage from the outgoing tenant. We have £250,000 of capital which will be used for purchasing some of the above. A combination of hire purchase and use of an overdraft will be used to finance the rest. Within the first 6 months we will begin to build up the beef enterprise by rearing the calves born to the dairy cows. Income from these should begin to come in by April 2017 as we finish the first stores. The beef should be at full working capacity by September 2017, which is when the rest of the calves that are born in October 2015 will begin to finish. We expect our working overdraft to reach £675,000 midway through the second year. We acknowledge that this is an exceedingly high figure, however on reflection we would likely put many of our initial purchases such as machinery and possibly livestock on medium term loans. In this circumstance all finance bar two items of machinery are purchased using the overdraft. Our security of £250,000 will be invested in the purchase of dairy cows. On investigating setting up this business it is likely that nearly double this figure will be required for a lender to be fully satisfied on their investment security. We have budgeted for milk to reflect current prices, which explains the time taken for payback on investment. However we have taken the liberty to adjust milk prices in subsequent years in the cash flow in anticipation of a rise. Rent is also fixed for the first 6 years until we perceive better market climates at which stage we have shown a 10% increase. 7 | P a g e Harry Holt ‐ Farm Business Plan Below is a table summarising the Rent and finance charges for the first six years. There is a sharp increase on interest due to the expenditure on livestock and equipment. Hire purchase is for two items of machinery we were given exception to use in place of overdraft, with payments over five years. 2016
2017
2018
2019
2020
2021
Rent
£51,060
£51,060
£51,060
£51,060
£51,060
HP
£1,860
£1,860
£1,860
£1,860
£1,860
£400
£400
£400
£400
£400
£400
£23,855
£51,916
£51,372
£46,309
£40,201
£39,313
Total
£77,175
£105,236
£104,692
£99,629
£93,521
£94,879
Rent &
Finance
Charge/Ha
£559
£762
£758
£721
£677
£687
Bank
Charges
Interest on
Overdraft
8 | P a g e £55,166
---
Harry Holt ‐ Farm Business Plan Cash Flow Summary Year 1 – Year 3 Cash Flow Budgets Oct Nov Dec Jan Feb £0
£34,192
£34,392
£34,392
£34,392
£250,000
‐£90,664
Net Cash Flow Closing Bank Balance ‐
£340,664 ‐£90,664
Income Total Income Expenditure Total Expenditure Opening Bank Balance 2015‐
16 £340,664
£43,721
£56,050
£37,711
£33,541 Mar Apr May Jun Jul Aug Sep Total £34,392
£34,392
£39,492
£39,492
£34,392
£34,392
£34,392 £419,237 £62,179
£48,693
£49,629
£59,410
£34,271
£40,964
£49,829 ‐£43,721
‐
£134,385 ‐£56,050
‐
£190,435 ‐£37,711
‐
£228,146 ‐£33,541 ‐
£261,687 ‐£62,179
‐
£323,865 ‐£48,693
‐
£372,559 ‐£49,629
‐
£422,187 ‐£59,410
‐
£481,597 ‐£34,271
‐
£515,868 ‐£40,964
‐
£556,832 ‐£49,829 ‐
£134,385 ‐
£190,435 ‐
£228,146 ‐
£261,687 ‐
£323,865 ‐
£372,559 ‐
£422,187 ‐
£481,597 ‐
£515,868 ‐
£556,832 ‐
£606,661 ‐
£856,661 Cash Flow 2016‐17 Budgets Income Total Income Total Expenditure Opening Bank Balance Net Cash Flow Closing Bank Balance Please see full cash flows on Page 61
9 | P a g e Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Total £40,137
£40,137
£60,837
£40,137
£40,137
£40,137
£46,490
£51,590
£51,590
£46,490
£52,355
£52,374 £562,407 £59,413
£55,367
£54,314
£48,945
£42,809
£58,047
£48,656
£50,870
£60,934
£42,058
£49,661
£57,067 £628,143 ‐
£606,661 ‐£19,276
‐
£625,937 ‐£15,230
‐
£641,167 £6,523
‐
£634,645 ‐£8,809
‐
£643,453 ‐£2,673
‐
£646,126 ‐£17,910
‐
£664,036 ‐£2,167
‐
£666,203 £720
‐
£665,483 ‐£9,344
‐
£674,828 £4,431
‐
£670,396 £2,694
‐
£667,702 ‐£4,694 ‐
£625,937 ‐
£641,167 ‐
£634,645 ‐
£643,453 ‐
£646,126 ‐
£664,036 ‐
£666,203 ‐
£665,483 ‐
£674,828 ‐
£670,396 ‐
£667,702 ‐
£672,396 ‐£65,735 Harry Holt ‐ Farm Business Plan Cash Flow Budgets 2017‐
18 Income Total Income Expenditure Total Expenditure Opening Bank Balance Net Cash Flow Closing Bank Balance Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Total £55,288
£55,288
£75,988
£55,288
£55,288
£55,288
£55,288
£60,388
£60,388
£55,288
£55,288
£55,307
£694,375 £50,651
£60,655
£41,719
£49,260
£56,645
£627,599 £59,851
£55,836
£54,556
£49,088
£42,852
£57,989
£48,497
‐
£672,396 ‐£4,563
‐
£676,959 ‐£548
‐
£677,507 £21,432
‐
£656,075 £6,200
‐
£649,875 £12,436
‐
£637,439 ‐£2,701
‐
£640,140 £6,791
‐
£633,350 £9,737
‐
£623,612 ‐£267
‐
£623,879 £13,569
‐
£610,310 £6,028
‐
£604,282 ‐£1,338
‐
£676,959 ‐
£677,507 ‐
£656,075 ‐
£649,875 ‐
£637,439 ‐
£640,140 ‐
£633,350 ‐
£623,612 ‐
£623,879 ‐
£610,310 ‐
£604,282 ‐
£605,620 Please see full cash flows on Page 61
10 | P a g e Harry Holt ‐ Farm Business Plan Fixed Costs Machinery Depreciation Machinery Repairs Fuel for Tractors Oil Fuel for Road Vehicles Road Tax Contractors' Charges Electricity Property Depreciation Property Repairs Labour Rent Council Tax Water Lime Interest & Bank charges Insurance Accountant Miscellaneous 11 | P a g e £ Gross Margins £10,506
Dairy Cow Beef Steers £21,125
Beef Heifers £11,404 Single Farm Payment £1,982 Rental Income £1,812 £205 £52, £12,860 £0 £4,140 £25,000 £51,060 £900 £9,180 £1,518 £48,946 £1,450 £2,000 £5,520 £272,156 Loss £353,358 No 220 69 69 138ha 12mths GM/head Total £1,013 £222,860 £571 £39,399 £455 £31,395 £20,700 £150/ha
£400/pcm £4,800 -£34,204
£319,154 Harry Holt ‐ Farm Business Plan Conclusion Completing this project gave us an understanding on the detailed planning, budgeting and forecasting required when going into a new business. Although choosing enterprises was not a difficult decision to make, due to the systems employed by the farms current tenant being very similar and for ourselves having prior knowledge of the selected industries, creating a business plan which would be both profitable and sustainable proved a challenge we both enjoyed over coming. Realistically, we understand that farming in general, and especially the dairy sector, is under a lot pressure at this time and that it would be tough to convince any lender for the capital funds we require to set out this business. However, we believe that as a commodity and a food source, the price of milk will begin to rise again as demand slowly works its way up. The challenge of creating a profitable business in the climate we stand may also open up an opportunity for us to start a business that is so efficient that when prices do rise again the margins will be even greater. We are also confident in the simplicity, practicality and the ability to become highly profitable that this business plan has that we hope would give confidence to a lender of its potential for a sound investment and trust in ourselves as managers to keep driving the business forward and improving efficiency and profitability. 12 | P a g e Harry Holt ‐ Farm Business Plan Annex 1 – Physical Appraisal Field Map showing roads, tracks, building location and water ways followed by
individual field analysis.
13 | P a g e Key - Buildings
- Lower Street Road
- Tracks to fields
- Stream
Total farm size – 137.6Ha
Field
Size
Soil
Type
Soil
Structure
Depth
Hedges/
Fences
Access
Water
Higher
Mead
4.1
Clay
Reasonable
15cm
Fenced
next to
farm,
Cattle
proof
hedges
From
Farm
Trough
Flat
N/A
Grass
Harry Holt ‐ Farm Business Plan Clay
Reasonable
15cm
Cattle
proof
hedges
From
farm
track
going
through
Higher
Mead
Trough
Flat
N/A
Grass
Lower
Mead
7.4
Slopes
Obstacles
Crop
Lower
Broadlawn
7.6
Clay
Reasonable
15cm
Cattle
proof
hedges
Farm
Track
from
farm
Trough
Flat,
gentle
Slope
N/A
IRG
Higher
Broadlawn
5.3
Clay
Reasonable
15cm
Cattle
proof
hedges
Farm
Track
from
farm
Trough
Gentle
Slope
N/A
IRG
Stuckey’s
Near
5.3
Clay
Reasonable
15cm
Cattle
proof
hedges
From
farm
track
going
through
Higher
and
Lower
Mead
Trough
Flat
N/A
Permanent
Pasture
Stuckey’s
Far
3.1
Clay
Reasonable
15cm
Cattle
proof
hedges
From
Bushey
Park
Stream
Flat
Stream
permanent
Pasture
Lucerne
2.8
Clay
Reasonable
15cm
Cattle
proof
hedges
Farm
Track
from
farm
Trough
Gentle
Slope
N/A
IRG
Bushey
Park
1.2
Clay
Reasonable
15cm
Cattle
proof
hedges
Farm
Track
from
farm
Stream
Flat
N/A
permanent
Pasture
Copse Hill
1.5
Clay
Reasonable
15cm
Cattle
proof
hedges
From
Bushey
Park
Stream
Flat
Stream
permanent
Pasture
14 | P a g e Harry Holt ‐ Farm Business Plan Woods
6.2
Clay
Reasonable
15cm
Cattle
proof
hedges
From
Stuckey’s
Far
No
Water
Flat
N/A
IRG
12 Acres
4.2
Clay
Reasonable
15cm
Cattle
proof
hedges
From
Small
New
Close
Stream
Flat
Stream
permanent
Pasture
Small New
Close
1.7
Clay
Reasonable
15cm
Cattle
proof
hedges
Farm
Track
from
farm
Trough
Flat
N/A
permanent
Pasture
Big New
Close
4.1
Clay
Reasonable
15cm
Cattle
proof
hedges
Track
from
Small
New
Close
Trough
Flat
N/A
permanent
Pasture
Poor
Ground
2.8
Clay
Reasonable
15cm
Cattle
proof
hedges
Farm
Track
from
farm
Trough
Gentle
Slope
N/A
IRG
Fold Field
7.4
Clay,
slightly
Stoney
at the
top of
the
field
Reasonable
15cm
Cattle
proof
hedges
Track
from
Farm
through
Pitts
down
and
onwards
Trough
Gentle
Slope
N/A
Winter
Wheat
Tunniger’s
5.3
Clay,
slightly
Stoney
at the
top of
the
field
Reasonable
15cm
Cattle
proof
hedges
Farm
Track
from
farm
Trough
Fairly
Flat
N/A
Winter
Wheat
7 Acre Park
2.8
Clay,
slightly
Stoney
at the
top of
the
field
Reasonable
15cm
Cattle
proof
hedges
Farm
Track
from
farm
Trough
Fairly
Flat
N/A
Winter
Wheat
15 | P a g e Harry Holt ‐ Farm Business Plan Jac
Meakers
6.6
Clay
Reasonable
15cm
Cattle
proof
hedges
Farm
track
through
fields
from
Pitt's
Down
Trough
Fairly
Flat
N/A
Winter
Wheat
Pile
3.8
Clay
Reasonable
15cm
Cattle
proof
hedges
Farm
track
through
fields
from
Pitt's
Down
Trough
Fairly
Flat
N/A
Winter
Barley
Long Down
6.5
Clay
Reasonable
15cm
Cattle
proof
hedges
Farm
track
through
fields
from
Pitt's
Down
Trough
Fairly
Flat
N/A
Winter
Wheat
Rodgers
Down
3.5
Clay
Reasonable
15cm
Cattle
proof
hedges
Farm
track
through
fields
from
Pitt's
Down
Trough
Fairly
Flat
N/A
Winter
Wheat
Pitts Down
4.9
Clay
Reasonable
15cm
Cattle
proof
hedges
Farm
track
through
fields
from
Pitt's
Down
Trough
Fairly
Flat
N/A
Winter
Wheat
Glebe 1
1
Clay
Reasonable
15cm
Cattle
proof
hedges
Farm
track
through
fields
from
Pitt's
Down
Trough
Fairly
Flat
N/A
permanent
Pasture
16 | P a g e Harry Holt ‐ Farm Business Plan Glebe 2
0.9
Clay
Reasonable
15cm
Cattle
proof
hedges
From
track off
the road
that goes
down to
the farm
No
Water
Fairly
Flat
N/A
permanent
Pasture
Down Acre
1
Clay
Reasonable
15cm
Cattle
proof
hedges
From
track off
the road
that goes
down to
the farm
Trough
Fairly
Flat
N/A
permanent
Pasture
Mrs Pernes
0.8
Clay
Reasonable
15cm
Cattle
proof
hedges
From
track off
the road
that goes
down to
the farm
Trough
Fairly
Flat
N/A
IRG
Mrs Pernes
2
2
Clay
Reasonable
15cm
Cattle
proof
hedges
From
track off
the road
that goes
down to
the farm
Trough
Fairly
Flat
N/A
IRG
Mrs Retits
House
2
Heavy
Clay
Dense
15cm
Cattle
proof
hedges
From
track off
the road
that goes
down to
the farm
No
Water
Fairly
Flat
N/A
IRG
Mrs Retits
House 2
2
Heavy
Clay
Dense
15cm
Cattle
proof
hedges
From
track off
the road
that goes
down to
the farm
No
Water
Fairly
Flat
N/A
IRG
Gaskins
7
Clay
Reasonable
15cm
Cattle
proof
hedges
Second
smaller
track
from
Lower St
road
Trough
Fairly
Flat
Pylon in
the middle
of the field
Winter
Wheat
17 | P a g e Harry Holt ‐ Farm Business Plan Perrins Pile
4.5
Clay
Reasonable
15cm
Cattle
proof
hedges
First
larger
track
from
Lower St
road
Trough
Fairly
Flat
Telegraph
pole in
field
IRG
Sedge
Grove
4.6
Clay
Reasonable
15cm
Cattle
proof
hedges
Second
smaller
track
from
Lower St
road
Trough
Fairly
Flat
N/A
Winter
Wheat
Petits
3.2
Heavy
Clay
Dense
15cm
Cattle
proof
hedges
From
Lower St
road
No
Water
Fairly
Flat
N/A
Maize
Petits 2
6
Very
Heavy
Clay
Dense
15cm
Cattle
proof
hedges
From
Lower St
road
No
Water
Fairly
Flat
Hedge
through
the middle
of the field
Maize
Watkins
Piece
3
Very
Heavy
Clay
Dense
15cm
Cattle
proof
hedges
First
larger
track
from
Lower St
road
Trough
Fairly
Flat
N/A
IRG
Beer
1
Clay
Reasonable
15cm
Cattle
proof
hedges
Through
Watkins
Piece
Trough
Fairly
Flat
N/A
permanent
Pasture
18 | P a g e Harry Holt ‐ Farm Business Plan A). Location Park Farm is located in Curry Mallet, a small village 6 miles east of Taunton. The farm
is at the end of the road so the only traffic is that of farm vehicles and any Lorries that
come to collect milk and make deliveries.
Park Farm (Image from Google)
Staffing
Curry Mallet is 2 miles from the A358 which goes into Taunton, accesses the M5 and
continues east to Ilminster. This is a main A road with excellent links. Langport a larger
local town is around 7 miles North East of the farm and Bridgwater is around 13 miles
from the farm so plenty of labour can be sourced from these areas that are in a close
proximity of the farm.
Livestock Markets
Sedgmoor Market, Bridgwater (13 miles away at junction 24) – Beef, Sheep, Dairy Cow
and Heifer Replacements, Calves
Stillmans, Taunton (8 miles away) – Abattoir
ABP Abattoir, Langport (7 miles away) – Deadstock
Cereal Markets
Cannington grain, Cannington (15 miles away)
Devon grain (23.3 miles away)
Avonmouth Docks, Bristol (35 miles away) – Worldwide trade
Milk Sales
Muller Wiseman, Bridgwater
Barbers Cheese, Ditcheat
Wykes Farm, Bruton
Gundenham Dairy, Wellington
19 | P a g e Harry Holt ‐ Farm Business Plan Dairy Crest, Taunton
Suppliers
Mole Valley Farmers, Bridgwater (15 miles away)
Mole Valley Farmers, Yeovil (23 miles away)
Bartletts Country Stores (11 miles away)
Parris Tractors, Taunton (6 miles away)
Bigwoods Agri ltd, Walford Cross (7 miles away)
Compass Tractors, Junction 24, Bridgwater (10.7 miles away)
Hawkins Agri, Bridgwater (13.1 miles away)
b). Type of land The land is currently in a 6 year rotation of Italian Rye Grass, Winter Wheat, Winter
Barley and Maize. The farm is generally flat with some gentle slopes. 24 Ha of the farm
is in permanent pasture which runs along the stream, out of this 2.9Ha (Down Acre, Glebe
and Glebe 2) is closer to the farm next to some houses.
c). Size of farm The total size of the farm is 137.6Ha.
d). Soil Soil Type
The land across the whole farm is clay. Petits 2 and Watkins Piece has very heavy clay
and Petits and Mrs Retits House and Mrs Retits House 2 has heavy clay soils too. Closer
to the farm across Tunnigers, 7 Acre Park and Fold Field the land gets slightly stony
across the top of the fields where the top of the slope is. The land is very fertile but doesn’t
drain very well. The stream runs through Big New Close, Small New Close, 12 Acres,
Bushey Park, Copse Hills, Stuckey’s near and Stuckey’s Far and these fields do have a
tendency to flood as they are all low lying and they are permanent pasture.
Soil Depth and Structure
The soil depth is around 15cm of top soil across the whole farm with a reasonable
structure. In Petits 2 and Watkins Piece the soil is very heavy slay which has quite a
dense structure.
The land can grow most arable crops and can be used for grazing livestock.
e). Hedges and Fences The hedges are all cattle proof across the whole farm. If a sheep enterprise was to be
added to the farm then a large sum of capital would be needed in invest in permanent
fencing. Electric fencing can be used for cattle too when grazing.
f). Water Supply 20 | P a g e Harry Holt ‐ Farm Business Plan The whole farm has excellent access to water with the use of the stream and most fields
all have troughs supplied by water. Petits, Petits 2, Mrs Retits House and Mrs Retits
House 2 are the exceptions and have no water access in the fields. The water for the fields
comes from a borehole and the farm buildings use mains water.
g). Slopes Most of the land across the farm is all fairly flat. The only place where the farm starts to
gently slope is in Tunnigers, 7 Acre Park and Fold Field, Tunnigers is a southerly facing
slope and 7 Acres Park and Fold Field are both northerly facing slopes. None of the slopes
will cause any damage to machinery.
h). Access to fields Access to all the fields is good with plenty of tracks coming off of Lower St road and from
the farm to access them. All of the fields are on the lower side of Lower St road and can
be ring fenced. Pile, beer and Woods are the only 3 fields that need to be accessed through
other fields.
I). Limitations/Obstacles 







Higher Mead and Lower Mead has a public footpath going through it.
Pitts Down, Rodges Down, Long Down and Jac Meakers all have a foot path that
runs through the fields up the track.
Big New Close, Small New Close, 12 Acres, Bushey Park, Copse Hills, Stuckeys
Near and Stuckeys Far can have a tendency to flood from the stream and they can
also get quite wet.
Petits 2 has a strip of hedging through the middle of the field
Gaskins has a Pylon in the field
Perrins Pile has a Telegraph Pole in the field
Watkins Piece, Petits 2, Petits and Mrs Retits House all has heavy clay soils which
could cause problems for machinery when the ground gets wet.
To access woods you have to go over the stream which could become difficult with
flooding.
21 | P a g e Harry Holt ‐ Farm Business Plan j).Buildings A Q A
B
D E C O F G I H J
K P L M Key:
A – Q are references for the buildings
Animal, Crop, Straw and Machinery storage
Silage Pitts
Slurry Lagoon
(Google, 2011)
It should be noted that the above aerial picture does not show the most recent building
updates, such as the new dairy parlour added to the north side of building D and the new
calf pens shown as block B. Blocks N, O and Q are concentrate store and silos, while L
and M are twin silage clamps.
The following gives a brief building description and purpose with building dimensions.
22 | P a g e Harry Holt ‐ Farm Business Plan A – Grain and machinery storage (20m x 26m)
B – 10 calf rearing pens holding 5 in each pen (35m x 2m)
C – Dutch Barn for straw storage (20m x 10m)
23 | P a g e Harry Holt ‐ Farm Business Plan D – Milking parlour 28/28 system, Bulk Tank (6m x 18m), Bull and sick pens, Handling
area for Artificial Insemination and vet inspection. etc., feeding areas both 8m x 45m
wide, 120 cubicles (37m x 16m) and a loose yard (37m x 18m)
E – Slurry Lagoon (25m x 25m x 2m) 1250m³)
F – Machinery and Straw Storage (10m x 44m)
24 | P a g e Harry Holt ‐ Farm Business Plan G – Beef Cattle (10m x 44m)
H – Beef Cattle (40m x 6m)
I – Dry Cows (16m x 32m)
25 | P a g e Harry Holt ‐ Farm Business Plan J – Machinery storage and Workshop (44m x 6m)
K – 2 silage pits (2m x 10m x 50m)
26 | P a g e Harry Holt ‐ Farm Business Plan L – Silage pit (3m x 20m x 40m)
M – Silage Pit (3m x 20m x 40m)
N – Concentrates Storage (20m x 5 m) in 4m x 5m sections)
O – Feed Silo (10 tonne capacity)
P – Slurry Pitt (25m x 6m x 2m) 300m³)
Q – Dairy Concentrate Silo (21 tonne capacity)
k). Waste Storage Not coming under NVZ regulations makes muck handling easier. There are two slurry
lagoons with a combined capacity of 1550m³. This is enough to store the winter month’s
slurry from the dairy cow housing and the slurry from the beef enterprise buildings. FYM
can be heaped in the fields designated to be maize the following year. Access to both slurry
lagoons enables mechanical entry to empty out, either by slurry pump or a 360 digger.
l). Housing for employees The farm comes with a 3 bedroomed bungalow which could be used for a herdsperson with
family. The farm house has a small flat on the first floor ideally suited to 1 single person.
m). Electricity 27 | P a g e Harry Holt ‐ Farm Business Plan All the buildings have electricity and the farm is on 3 phase electricity.
n). NVZ The farm is not in a Nitrate Vulnerable Zone.
o). Pests and Diseases Black grass can be an issue with the arable cropping. TB will need to be tested annually.
p). Basic Payment Scheme As we will be going into the farming tenancy on October 1st, we do not qualify for the payment of the first year as we will not have been on the land for the 12 month minimum requirement. Therefore we will not get our first Basic Payment until December the following year. There was some speculation over the “3 crop rule” and whether we would be penalised for growing only 2 forage crops plus permanent pasture, however on further investigation there is an exemption: “The crop diversification rule doesn’t apply if more than 75% of the total eligible land is: ‐
‐
‐
‐
Permanent pasture Temporary grassland Used for the cultivation of crops grown in water A combination of the above” Since more than 75% of our eligible land is grassland we are therefore exempt from this diversification rule and so should receive full payment. Payment due per eligible Ha: £200 (Nix, 2014) q). Current Cropping and Stocking The current farm has a rotation of Italian Rye Grass, Winter Wheat, Maize and Winter
Barley.
250 cows are milked, calves from the dairy are reared for beef (230 calves annually) and
200 sheep are bred and sold for lamb.
28 | P a g e Harry Holt ‐ Farm Business Plan Annex 2 ‐ S.W.O.T Strengths 




Very fertile ground
Ring fenced farm
Good access to most fields- Pile, beer and woods are the only fields not accessible
by a track.
The farm has access to its own water borehole as well as being connected to
mains water. Most fields, including all in the immediate surroundings of the
buildings, have water supply.
There are plenty of markets within easy reach of the farm. These include:
‐ Livestock: Sedgemoor (13 miles), Langport Market – (7 miles), Stillmans
Taunton Abattoir (9 miles), ABP Abattoir (15 miles).
‐ Grain: Cannington Grain Store (15 miles), Devon Grain (23 miles)
Avonmouth Port (35 miles)
‐ Milk: Dairy Crest (Taunton), Muller Wiseman (Bridgwater),
‐ Straw: Butt Brothers, Wincanton (20 miles)
The farm is at the end of the road so has no through traffic, which is excellent for bio
security and possible theft issues.
The land is all fairly flat which will cause little problems for machinery
Excellent building and slurry capacity
Plenty of storage for silage
Safe and secure buildings for machinery storage
Electricity in all buildings
Excellent housing for employees and close sources of staffing
Not in a NVZ
All fields have cattle proof hedges
Little obstructions/obstacles in fields
Modern dairy unit
Weakness ‐
‐
‐
‐
‐
‐
29 | P a g e Area is susceptible to black grass
Clay soils
Ground can get quite wet and doesn’t drain well
Stream is prone to flooding over the permanent pasture
If a sheep enterprise is going to be implemented onto the farm then a heavy
investment will be needed for fencing
Possible threat of Bovine TB
Harry Holt ‐ Farm Business Plan ‐
Footpaths through the farm
Opportunities ‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
‐
Extra income from either renting out the bungalow or flat if not used by
staff
Dairy
Heifer Rearing
Beef cattle
Sheep
Pigs
Poultry
Goats
Arable – wheat, barley, oil seed rape, beans
Hay, silage and maize
Solar Panels on buildings for green energy
ELS and HLS schemes
‐
‐
‐
‐
‐
‐
‐
‐
‐
Bovine TB could cause a problem with trading
Beef, cereal and milk prices can fluctuate
Difficulty in crop establishment with clay soils
Basic Payment Scheme or EU regulations could change
Waterlogging of ground
Weather damage to crops/buildings
Illness to staff
Disease in crops or livestock
Woods Field is accessed by a track that is liable to flood in very bad weather
‐
Threats Annex 3 – Net Margins and Deciding on an Enterprise Fig 1. Graph showing crop net margin
Enterpris
e
Yield/H
a
GM/H
a £/Ha
Adjustment
s
GM/Ha after
Adjustment
s £/Ha
Net
Margin/H
a
£/Ha
Winter
Wheat
8.4
636
Straw 4T/Ha
@£50/T
836
486
Winter
Barley
6.9
467
Straw 3.5T/Ha
@£70/T
712
362
30 | P a g e Harry Holt ‐ Farm Business Plan Winter
Beans
4
649
N/A
649
299
Winter Oil
Seed
Rape
3.4
462
4T/Ha
@20/T
542
192
Oats
6.3
490
4T/Ha
@£30/T
610
260
Fig 2. Showing livestock net margin
Enterpris
e
Yield
GM/
Head
LSU/
Hd
18 Month
Beef
N/A
456
0.7
31 | P a g e Adjustme
nt
(adj) Info
Silage/Hd
/T
GM/Ha
after
adj
£/Ha
same
as
GM/Hd
for
livesto
ck
6
456
Associat
ed fixed
costs
assume
silage
£12/T
Contracto
rs
For silage
72 for
FYM 20
Net
Marg
in
/Hd
346
Net
Margi
n/
Ha
£/Ha
3.14x
364 =
£1143/
Ha
Harry Holt ‐ Farm Business Plan Dairy
Cows
Dairy
Heifers
calving @
2years
Lowland
Sheep
7000
litres
autum
n
calving
N/A
N/A
1252
1.0
10
1252
120
20
1112
659
1.2
6-8
659
84
20
555
26
0.15
32 | P a g e 0.25
26
Contracto
rs for
silage 3
23
2.2x
1112=
£2446
/Ha
2.2x
555=
£1221
/Ha
14.7x
23=
£338
/Ha
Harry Holt ‐ Farm Business Plan Fig 3. League Table - indicates which enterprises makes the most £/Ha.
1
2
3
4
5
6
7
8
9
Enterprise
Dairy Cows
Dairy Heifers
18 Month Beef
Winter Wheat
Winter Barley
Lowland Sheep
Winter Beans
Oats
Winter Oil Seed
Rape
Net Margin £/Ha
£2446
£1221
£1143
£486
£362
£338
£299
£260
£192
Choice of Enterprise: After assessing the farm and taking the net margins and league table into
consideration we have decided that the farm will have both a dairy and a beef enterprise
on it. Dairy enterprising has the highest net margin for livestock and the farm is equipped
with a modern dairy system allowing for high animal welfare standards to be met whilst
maximising output. We are aiming for a high yielding system to produce 8000 litres per
cow per lactation with a herd 220 cows in an all year round system. Cows will be fed on a
TMR ration based on grass and maize silage. The in parlour feeds will be used to fulfil
any additional feed requirements of each cow to maximise production.
Each cow will produce a calf at a target of every 390 days totalling 206 calves. An all year
round calving system will create a constant cash flow from the milk production instead of
the high peaks and low drops associated with block calving. This means that 17 calves
will be born each month. The setup of the buildings is in favour for all year round calving.
All cows will be put to AI using Charolais bulls. The Charolais is a breed that throws good
sized calves that grow very well, putting on conformation rapidly, resulting in a heavy
carcass in a shorter period to other continental breeds.
An all year round calving system will benefit the beef enterprise. The calving pens
already in place at the farm hold up to 50 calves although we plan to operate on an 8 week
cycle, the time it takes to wean a calf, allowing for each pen to have a clean out period to
be sterilised using a steam cleaner. Calves will be reared to weaning at 8 weeks before
transferred across to the intensive rearing unit. An all year round calving system will
create a flow of calves which will be transferred into the beef enterprise with the Charolais
crossed calves finished intensively. Bull calves will be castrated making fattening safer
for the animals and handlers. Steers and heifers will be reared together on a high protein
diet of maize grass and bought in concentrate to 14 months of age when they will be
separated. From this point steers will go onto a finishing ration and the heifers, who will
be smaller will continue on the growing ration. At 18 months the steers will be finished
and sold. The heifers will be put on a finishing ration at 18 months old and will be sold at
21-22 months. On this system we expect the steers to kill out at a weight of 450kg and the
heifers to be 400kg. We will hope to secure a contract with the local abattoir ABP who will
benefit from a regular supply of high quality beef. As the forage available to us will limit
33 | P a g e Harry Holt ‐ Farm Business Plan the amount of calves we can keep to finish, over the months of May and June we will sell
the calves born in this period as stores once they have been registered and passports
received. The local livestock markets of Sedgemoor and Langport will allow for ease of
sale and the productivity of Charolais X store calves will ensure good store prices.
The beef enterprise will create further cash flow for a large majority of the year, except
the two month period where no calves will be kept. We decided on beef finishing over a
heifer rearing enterprise because we feel the beef enterprise to be more straight forward
and the margins between heifer rearing and beef finishing being so tight that instead of
the effort of selecting the right bulls for the right cows and with the local markets so close
that this was the option for us.
All replacements will be bought in. this allows us to select the animals we want for the
herd. The current tenant has a business relationship with a local farmer to rear some of
his replacements and we would look at doing a similar thing. Culls will be taken to the
livestock markets also unless we feel we have the capacity at the time to fatten them
ourselves to sell to the abattoir.
The farm land will be used to grow maize and grass silage. The dairy herd will be
put out to permanent pasture to graze in the summer. The beef cattle will be housed all
year round and reared intensively.
Each dairy cow is 1.0LU and will require 10 tonnes of silage for the winter months. This
will be fed at a ratio of 75% grass silage and 25% maize, as we feel that with the type of
soil and the rotation we have chosen this is most suited. To make cropping simpler there
will be some years where more maize is in production and some where there is less due to
field and block sizes. This will just be reflected in the percentage fed to the animals
however it should not change dramatically. But as a rule this is how we shall grow and
feed the crop.
220 cows x 10t = 2200 tonnes of forage crop
75% of 2200t = 1650t Grass Silage
25% of 2200t = 550t
As the ground is heavy clay and very fertile we expect to achieve a 2.4LU/ha figure. Using
the following calculations to work out hectares required.
Dairy Forage Requirements 92ha total
Grass Silage 1650 tonnes @ 45t/ha = 37ha required
Maize 550 tonnes @ 40t/ha = 14ha required
Grazing left over = 41 ha
When extra silage is required or if there is too much grass for cattle to graze then parts of
the grazing ground can be cut to make additional forage which is always beneficial. Visa
Versa if more grazing is required silage ground can be used once a cut is taken.
34 | P a g e Harry Holt ‐ Farm Business Plan The remaining ground on the farm will also be put into forage maize and Italian ryegrass
and will support the intensive beef enterprise.
Beef Requirements
From the total 138 ha, 45 ha remain after the diary requirements have been deducted. To
calculate the LU for the beef enterprise:
18 month Steers
Cattle under one year =
0.4LU
+
Half of Cattle 1 – 2 years = 0.3LU
= 0.7 LU
22 month Heifers
Cattle under one year =
0.4LU
+
⅚ Of Cattle 1 – 2 years =
Average of the two groups
0.5
= 0.9 LU
= 0.8 LU
To work out the number of animals we can rear and finish the calculations are:
45ha x 2.4LU/ha = 108LU
108LU / 0.8 (Avg. LU per head of beef) = 135 animals
These animals will be fed on the same ratio as the dairy cows of 75/25 grass and maize
silage ratio. To calculate Ha required for each crop which is 25% for maize and 75% for
grass this means that 11ha needs to be maize and 34ha required for grass. These will be
added and incorporated into the cropping programme for the dairy farm.
Once the dairy and beef forage requirements are added together the hectares for each
crop are as follows:
Maize – 25 Ha
Grass Silage – 71 Ha
Grazing – 42 Ha
Total – 138 Ha
35 | P a g e Harry Holt ‐ Farm Business Plan Annex 4 ‐ Physical Plan a) Rotation
We have decided to put the entire 138 hectares of land available into forage rotation. For
the dairy enterprise on a 6 month housed system they will require 92 hectares for 220
cows and an intensive beef enterprise of 138 animals requiring the remaining 46 hectares.
We believe that the ground is capable of supporting a 2.4LU/Ha value.
The rotation will be 1 years forage maize and 3 year intensive ryegrass silage as well as
a block of grazing and cutting leys that will be reseeded every 3 years on a 1/3 of the total
reseeded per year rotation.
It should be noted that Woods field is accessed by a track that is liable to flood in very bad
weather.
The permanent pasture is not in rotation but will be included in the grazing requirements.
Cropping will be as follows:
Block
A
B
C
D
E
F
36 | P a g e Fields
Beer, Watkins Piece, Petits
1&2, Sedge Grove, Perrins
Pile
Mrs Petits 1&2, Mrs Perrins
1, Gaskins, Rodgers Down,
Pitts Down
Pile, Long Down Jac
Meakers, Fold Field
Poor Ground, Lucerne,
Higher Broadlawn, Lower
Mead, Woods
Mrs Perrins 2, Down Acre,
Glebe, Tunnigers, Lower
Broadlawn, 7 Acre Park
Big New Close, Small New
Close, 12 Acres, Bushey
Park, Copse Hill, Stuckeys
Nr & Far
Hectares
22.3
21.4
24.3
24.5
23.5
21.1
Harry Holt ‐ Farm Business Plan Year
1
2
3
4
Crop
Maize
Italian Ryegrass
Italian Ryegrass
Italian Ryegrass
Medium term Cut & Graze
Permanent Pasture
Year 1
‐ Permanent Pasture ‐ Italian Ryegrass Leys
‐ Grazing Leys 37 | P a g e ‐ Forage Maize Colour code
Harry Holt ‐ Farm Business Plan Year 2
‐ Permanent Pasture ‐ Italian Ryegrass Leys
‐ Grazing Leys 38 | P a g e ‐ Forage Maize Harry Holt ‐ Farm Business Plan Year 3
‐ Permanent Pasture ‐ Italian Ryegrass Leys
‐ Grazing Leys 39 | P a g e ‐ Forage Maize Harry Holt ‐ Farm Business Plan Year 4
‐ Permanent Pasture ‐ Italian Ryegrass Leys
40 | P a g e ‐ Grazing Leys ‐ Forage Maize Harry Holt ‐ Farm Business Plan b) Crops
The entire cropping rotation will be put into forage to feed both livestock enterprises.
This is laid out in part a).
Blocks A – D average 23.1ha each. These are the blocks to be rotated with Maize and
Italian Ryegrass for silage making.
Block E is 23.5 Ha and consists of fields closest to the buildings and therefore in easiest
reach for grazing the dairy cows on in summer months.
Block F is 21.1Ha and is made up of the remaining permanent pasture fields which
predominantly run adjacent to the water course that runs to the south of the farm.
These fields are very fertile and grow very good quality grass for grazing and could
even be used for finishing store cattle. However they can become wet, with average
rainfall in that area at “24 inches per annum”, according to the current tenant farmer
James Down. Although this is less than other parts of central Somerset the river still
swells and as the water table rises these fields are liable to flood making them
unsuitable for cropping or out wintering.
c) Livestock
220 dairy cows yielding 8000 litres/ year. Using Charolaise beef Artificial Insemination
on an all year round calving programme.
All replacements are bought in from local livestock markets.
Rear 17 beef calves per month apart from all calves born in May and June to be sold
as stores at 3 weeks of age.
All beef calves kept to be reared and finished on intensive beef unit. 138 animals per
year with steers finished at 18 months and heifers finished at 22 months.
d) Marketing
Sales
Milk - We will sell our milk through Robert Wiseman at Bridgwater on a Tesco’s contract
which is currently 31.95p/L (Dairy-Co, 2015)
Finished Beef – We will sell our beef on a contract to ABP supplying them with a
consistent number of quality beef animals every month for 10 months of the year.
Calves- All our beef cross dairy calf stores we do not keep for rearing will be sold at
Sedgmoor Livestock Market Junction 24, a 9 mile journey.
Cull cows- Depending on the dead weight prices at the time we will either sell our cull
cows at Sedgmoor market or APB Langport.
Purchases
Replacements – will be purchased from Sedgemoor market. The current tenant farmer
uses a local farmer who rears and sells heifers as a constant supply. We would look
41 | P a g e Harry Holt ‐ Farm Business Plan to promote this relationship to secure good quality replacements reared to our
satisfaction at a fair price for both parties. This would remove some of the risk in the
market fluctuations.
Purchased feed, seed and fertiliser – we will use Mole Valley farmers who are a local
merchant to supply us with the concentrates and any other bulk feeds we may use in
the diets of the cattle. This will be our source of fertiliser and seed also.
Straw- there are a number of local straw merchants. One such supplier could be Butt
Brothers Agricultural Contractors who supply straw.
e) Buildings
Q D2 A
B
D1 C O F G I H J
K P L M = Feed passage/trough space
The following gives a brief building description and purpose with building dimensions.
A – Grain and machinery storage (20m x 26m)
B – 10 calf rearing pens holding 5 in each pen (35m x 2m)
C – Dutch Barn for straw storage (20m x 10m)
42 | P a g e E
Harry Holt ‐ Farm Business Plan D – Milking parlour 28/28 system, Bulk Tank (6m x 18m), Bull and sick pens, Handling
area for Artificial Insemination and vet inspection. etc., feeding areas both 8m x 45m
wide, 120 cubicles (37m x 16m) and a loose yard (37m x 18m)
E – Slurry Lagoon (25m x 25m x 2m) 1250m³)
F – Machinery and Straw Storage (10m x 44m)
G – Beef Cattle (10m x 44m)
H – Beef Cattle (40m x 6m)
I – Dry Cows (16m x 32m)
J – Machinery storage and Workshop (44m x 6m)
K – 2 silage pits (2m x 10m x 50m)
L – Silage pit (3m x 20m x 40m)
M – Silage Pit (3m x 20m x 40m)
N – Concentrates Storage (20m x 5 m) in 4m x 5m sections)
O – Feed Silo (10 tonne capacity)
P – Slurry Pitt (25m x 6m x 2m) 300m³)
Q – Dairy Concentrate Silo (21 tonne capacity)
f) Use of FYM
All FYM produced will be utilised for grass and maize production. Slurry will be applied to
the grass via a slurry tanker. All solid manure will be applied to the maize ground and some
to the grass reseeds. This will reduce the overall cost of artificial fertiliser use.
Cattle Muck
Cattle Slurry
N (kg)
15
15
P (kg)
20
10
K (kg)
40
45
FYM Production
Class of Stock
Dairy Cow
Beef < 12 months
Beef 12 - 18 months
Beef 12 – 22 months
Slurry Produced in 6 Months (tonnes)
8
3
3
4
Beef production double the figure shown above due to being inside all year round.
Total Production on farm =
Dairy = 1,760 tonnes
43 | P a g e Harry Holt ‐ Farm Business Plan Beef =
690 tonnes
Total
2,450 tonnes
g) Feeding System
All animals will be fed on a Total Mixed Ration basis. This way we can precisely control
what each animal is fed and simply increase or decrease amounts fed accordingly.
All forage will be grown and ensiled onsite. Added to this will be straw, minerals and
concentrates to make up the total mix. The dairy cows will be fed a dairy mix and the beef
animals fed a rearing mix up to a point where they will then be put on to a finishing ration.
Calves will be hand fed milk powder twice a day until 6 weeks of age when they will be
reduced to once a day for two weeks and then weaned.
h) Straw
As all ground is put into a forage rotation, no straw will be made on site. Therefore it
must be purchased and bought in. We will use Butt Brothers Contractors who supply
straw to the Somerset area.
Requirements:
Dairy Cows – 0.5t/head =
110t
Beef – 1t/head =
140t
Total requirement =
250t
Dutch barn capacity =
110t (Two deliveries per year with the remaining 30t
being stored outside under silage sheeting)
i)
Labour
Initially we will manage to run the farm with the two of us as there will only be the milking
and initial calf rearing to take care of. One we have got the beef enterprise up and running
this will require extra labour. At full stock we believe that 1 extra person will be needed for
feeding and general farm duties. Giving a total of three full time staff.
All forage operations including drilling and spraying will be undertaken by contractors as
the capitol cost of purchasing the equipment to carry this is out of our initial budgeting.
Operations that will be taken in-hand will be:









Milking
Feeding
A.I
Calf Rearing
General Husbandry
Mucking out
Slurry application
Fertiliser application
Rolling
44 | P a g e Harry Holt ‐ Farm Business Plan This will give us minimal machinery start-up costs as a lot of these operations will be carried
out by contractors.
j)
Contractors
We will rely on contractors to carry out all forage operations including drilling and
reseeding, right through to silage operations. Although this will be at a cost each year,
we feel that it would be unwise to try to purchase the equipment needed to do this job.
We may decide to purchase a machine that will remove an operation from the
contractors to reduce costs. However these purchases will not take place initially.
k) Timing
All actions to be carried out by contractor will end with “(C)”
 The land and buildings will be taken over on the 1st October 2015
 No major work is required to the livestock buildings apart from general
maintenance.
 Machinery will be purchased as soon as possible, the first machinery required
is as below:
 Main tractor 140hp
 Tractor 100hp and loader.
 Feeder/ mixer wagon.
 Straw chopper.
 Buy yard scrapper and an older 60hp tractor to run it on.
 A delivery of straw will be required.
 Delivery of concentrates to make our TMR.
 Purchase fertiliser spreader, muck spreader and slurry tanker from October to
February.
 October – November purchase 220 in calf and lactating heifers and cows to
start milking straight away
 202 cows to be milking each month with 18 cows dry
 Buy fertiliser in February.
 February Purchase 50 beef stores, varying age to begin beef enterprise
 Spread manure January/February on maize ground.
 Plough maize grounds in March. (C)
 Apply compound fertiliser to grass lands where required April.
 Roll grass fields in April.
 Maize drilled in May. (C)
 Take first cut of silage in May. (C)
 Spread slurry on silage grounds.
 Second cut in June. (C)
 Spray the grass land that is in rotation off in late July. (C)
 Third cut grass mid-August (C)
 Seed grassland August/ September. (C)
 Harvest forage maize September. (C)
 Drill maize ground with ryegrass. (C)
 Buy in replacement heifers to replace cull cows in October
 Hire topper locally to top grassland short to save from winter die back, and
return organic matter to soil.
45 | P a g e Harry Holt ‐ Farm Business Plan l)
Machinery list
 140hp tractor
 100hp tractor + loader
 Keenan feeder wagon
 Sheer grab
 Fertiliser spreader
 Straw chopper
 Joskin Slurry tanker injector
 10t Muck spreader
 12 tonne trailer
 Bale spike
 Bucket
 Muck grab
 Cambridge rolls 6m
 Workshop tools
46 | P a g e Harry Holt ‐ Farm Business Plan Annex 5 – Gross Margins and Fixed Costs Enterprise Gross Margins a). Forage Variable Costs i). Stocking Rate Stock Dairy Cows 18month Beef steers 22month Beef heifers No. Farm = 136.7 hectares Stocking Rate = ii). Nitrogen Use LU 220
69
69
1
0.7
0.9
330
136.7
(2.4 ‐ 1.3) Total LSU 220
48
62
330
= 2.4 LSU/ Ha x 300kgN = 330Kg/N/Ha iii). Allocate Grass between grazing and silage Silage Required Tonne/Hd Total
220 Dairy Cows 10
2200
69 18 month beef steers 12
828
69 22 month beef heifers 12
828
3856 Tonnes required b). Estimate silage yield off 3 cuts N usage on grazing 300kgN/Ha N usage on silage 360kgN/Ha Silage Yield 360 x 0.125 = 45 tonnes / hectare c). Numbers of hectares required for silage 4000 / 45 = 88Ha for silage 88 Ha is needed for silage, from the rotations this has been taken up to 92Ha to keep the rotation simple as it was not worth putting a spare 4 Ha into another crop. Having an extra 4 Ha will help in years if not so much is produced and excess silage can be kept or possibly sold.
Out of the 92Ha for silage –
‐ 23Ha will be maize (around 25% yearly)
‐ 69Ha will be grass silage (around 75% yearly)
‐ 1/3 of block E, which is the temporary grass grazing ley, will be reseeded each year. This is a total of 8 Ha on average per year. This is a conservative plan to take in worst cases. If the grazing grass performs well, the reseed may be every 4th or even 5th year which would subsequently reduce the cost each year as areas to be reseeded will reduce as they are spread over more years.
136.7 Ha (total farm) – 92 Ha (forage) = 44.7Ha for grazing
iv). Reseeding Number of hectares to reseed 8 hectares Total 47 | P a g e Harry Holt ‐ Farm Business Plan Seed Dung Slurry Fertiliser Sprays £80/ha x 8 ha £640
0
0
200kg/ha N P K 0
24
24 @ x £20/Ha x £263/t 8Ha 8Ha v). Grazing Nitrogen required Phosphate required Potash Dung Slurry Fertiliser 44.7 Ha (including permanent pasture) 240 kg /ha 40 kg / ha 40 kg / ha 0
0
N P 400 kg/ha 20
464 kg/ha 34.5
K 10
10 @ x @ x £269/t 44.7Ha £265/t 44.7Ha vi). Silage Nitrogen Required Phosphate required Potash Dung Slurry Fertilisers 1,000 kg/ha of 248 kg/ha 69Ha 300 kg/ha 60 kg/ha 180 kg/ha 10t/ha N P 20
34.5
K 5
15 @ £263/t @ £265/t x 69Ha x 69Ha Additive Silage Sheets 4,000 tonnes 4,000 tonnes @ £2 / tonne @ £0.30/ tonne vii). Sprays Total grassland 113.7Ha @ £10 / Ha viii). Other Forage Crops Seed Dung Slurry Fertiliser 200 kg / ha Sprays 23 Ha of Maize £175/ha x 23 30t/ha N P K 20
10
£28 /ha 48 | P a g e 10
@ £269/t x 23Ha x 23ha Total Forage Variable Costs Dairy Cow Gross Margin 220 cows £420
£160
£4,809
£5,496
£18,147
£4,534
£8,000
£1,200
£1,137
£4,025
£1,237
£644
£50,449
Harry Holt ‐ Farm Business Plan Gross Output Total/Year £/cow/year
Milk 8000 litres @ 23p/litre x 220
£404,800 £1,840
Calves Calving index of 390 days number of calves born = 365
x 220 390
calf mortality = 4% 198
Number of calves reared 138 99 Beef bull calves @ £270
£26,730 £122
99 Beef heifer calves @ £250
£24,750 £113
Cow Depreciation 55 Cull cows @ £670
£36,850 £168
minus 55 Heifers @ ‐£1,350
‐£74,250 ‐£338
Total Gross Output £418,880 £1,905
Variable Costs Concentrates 563 Tonnes @ £235/T £132,305 £601.00
Vet and Med £16,060 £73
AI 2.2 services
@ £40/service £19,360 £88
Straw £13,200 £60
Miscellaneous £16,500 £75
Forage Variable Costs £33,632 £152
Total Variable Costs £231,057 £1,050
Total Gross Margin £187,823 £854
*The milk price figure used here reflects the current trend, however we hope that an
increase of sorts will be seen over the next two years. This is shown in our cash flow.
18 month Beef Steers Gross Margin Gross Output Variable Costs Concentrates Milk Powder 49 | P a g e 69
18month 69 steers Total/ye
ar 650kg
@ 170p/kg Total Gross Output 657kg @ £235/tonne 20kg/calf @ £1800/Tonne x 69 x 69 £/cow/ye
ar £76,245 £1,105
£76,245 £1,105
£10,653 £154
£2,484 £36
Harry Holt ‐ Farm Business Plan Calf Mixer Calf Rearer 140kg/calf @ £245/Tonne 270/calf @ £245/tonne x 69 x 69 Vet and Med Straw Miscellaneous Forage Variable Costs x 69 x 69 x69 22 month Beef Heifers Gross Margin 600kg 170p/kg 657kg @ £235/tonne 20kg/calf @ £1800/Tonne 140kg/calf @ £245/Tonne 270/calf @ £245/tonne x 69 x 69 x 69 x 69 x 69 x 69 x69 (AHDB, 2015) (Weekly, 2015) (Nix, 2014)
50 | P a g e £19
£42
£42
£106
£36,828 £533
£39,417 £571
Total/ye
ar Total Gross Output Vet and Med Straw Miscellaneous Forage Variable Costs £1,311 £2,898 £2,898 £7,338 69
22month 69 Heifers Variable Costs Concentrates Milk Powder Calf Mixer Calf Rearer £34
£100
Total Variable Costs Total Gross Margin Gross Output £2,346 £6,900 Total Variable Costs Total Gross Margin £/cow/ye
ar £70,380 £1,020
£70,380 £1,020
£10,653 £154
£2,484 £36
£2,346 £34
£6,900 £100
£1,311 £19
£2,898 £42
£2,898 £42
£9,478 £137
£38,968 £565
£31,412 £455
Harry Holt ‐ Farm Business Plan Annex 6 ‐ Machinery Inventory & Building Costs List of Machinery to be purchased and used along with quoted prices and suppliers. John Deere 6820 Massey Feguson 5445 + loader Ford 4610 Scraper Richard Weston Muck spreader Marstom 12t trailer Bale spike 1.5 t bucket 2005
2006
1982
2015
2005
2009
2008
2003
2004
2005
2014
2007
Muck Grab Vaderstadt Cambridge rolls 6m 2015 New 2006 Current value £1,050 Arm Equipment £2,250 LGB Ltd Pickup Truck 2nd hand Quad bike 2005 Current value 2007 Current value £3,500 Local Garage £2,000 Honda Keenan 170 mixer wagon KIDD 814SG Straw Chopper Kuhn MDS 1131 Fert Spreader Joskin Modulo 2 Slurry tanker Total Machinery Costs Current value Current value Current value New Current value Current value Current value Current value Current value Current value New Current value £26,500 £20,000 £5,500 £860 £3,500 £2,250 £850 £8,497 £4,950 £4,950 £350 £540 Farols Agriaffairs P&H Machinery Fosters Morgan Machinery Mcleon LTD Graham Holland LTD Joskin T H Tractors LTD Affordable Machines Kent Tractors Kent Tractors £87,547 (Trader, 2015) (Agriaffairs, 2015) (Fosters, 2015) (Joskin, 2015) Building Depreciation 0% £0 Building Maintenance 138 ha @ £30 per ha = £4140 Guide price shown from (Nix, 2014) 51 | P a g e Harry Holt ‐ Farm Business Plan Annex 7 – Fixed Costs 1) Machinery a) Depreciation Machine Depreciation % John Deere 6820 Massey Ferguson 5445 + loader Ford 4610 Scraper Keenan 170 mixer wagon KIDD 814SG Straw Chopper Kuhn MDS 1131 Fert Spreader Joskin Modulo 2 Slurry tanker Richard Weston Muck spreader Marston 12t trailer Bale spike 1.5 t bucket Muck Grab Vaderstadt Cambridge rolls 6m Pickup Truck 2nd hand Quad bike 52 | P a g e Current Value Value of Depreciation £3,180 £2,400 12 12 £26,500 £20,000 12 12 12 £5,500 £860 £3,500 £660 £103 £420 12 £2,250 £270 12 £850 £102 12 £8,497 £1,020 12 £4,950 £594 12 12 12 12 12 £4,950 £350 £540 £1,050 £2,250 £594 £42 £65 £126 £270 12 £3,500 £420 12 £2,000 Total Depreciation value £240 £10,506 Harry Holt ‐ Farm Business Plan b) Machinery Repairs Machine John Deere 6820 Massey Ferguson 5445 + loader Ford 4610 Scraper Keenan 170 mixer wagon KIDD 814SG Straw Chopper Kuhn MDS 1131 Fert Spreader Joskin Modulo 2 Slurry tanker Richard Weston Muck spreader Marston 12t trailer Bale spike Age (years) 10 9 1.5 t bucket Muck Grab Vaderstadt Cambridge rolls 6m Pickup Truck 2nd hand Quad bike Total Repair Costs Age of Machine New ‐ 3 years 4‐5 years 6‐7 years 8‐10 years % (See table below) 25% 25% 33 0 10 6 7 12 11 10 0 8 25% 5% 25% 15% 15% 25% 25% 25% 5% 25% 0 5% 9 10 8 25% 25% 25% 5%
10%
15%
25%
Current Cost of value repairs £26,500 £6,625
£20,000 £5,500 £860 £3,500 £2,250 £850 £8,497 £4,950 £4,950 £350 £5,000
£1,375
£43
£875
£337.50
£127.50
£2,124.25
£1,237.50
£1,237.50
£17.50
£540 £135
£1,050 £2,250 £3,500 £2,000 £52.50
£562.50
£875
£500
£21,125
Repairs per annum of new price of 4 year old price of 6 year old price of 8 year old price c) Fuel and Oil Machine John Deere 6820 Massey Ferguson 5445 + loader Ford 4610 Pickup Truck 2nd hand Quad bike HP Hours Worked 145
100
Litres of Fuel used 700
10150
10000
1000
80
200
1600
30mpg @8000 miles/annum = 266 gallons *4.54 = 1210L @ £1.20/L = 30
100
300
Annual Fuel Cost Oil Cost Formula for fuel cost = 0.1*HP*Hrs = fuel used*price of fuel = Total Cost 53 | P a g e Cost of fuel (ppl) Total £ 52.43
52.43
£5,322
£5,243
52.43
£839
£1,452
120
£360
£13,216
£1,982
Harry Holt ‐ Farm Business Plan Oil estimated as 15% of fuel cost d) Road Tax Pickup truck = Total £205 £205 e) Interest The two main tractors will be purchased on Hire Purchase. This table Machine Half Current Value John Deere 6820 £13,250
£1,060
Massey Ferguson 5445 + loader £10,000
£800
Annual Interest Interest £1,860
Interest calculated by using 8% of half the current value of the machine. f)
Insurance Machine Current value Engine John Deere 6820 Massey Feguson 5445 + loader Ford 4610 Scraper Keenan 170 mixer wagon KIDD 814SG Straw Chopper Kuhn MDS 1131 Fert Spreader Joskin Modulo 2 Slurry tanker Richard Weston Muck spreader Marston 12t trailer Bale spike 1.5 t bucket Muck Grab Vaderstadt Cambridge rolls 6m £26,500 £20,000 Yes Yes Insurance Value £530 £400 £5,500 £860 £3,500 £2,250 £850 £8,497 £4,950 Yes No No No No No No £110 £9 £35 £23 £9 £85 £50 £4,950 £350 £540 £1,050 £2,250 No No No No No £50 £4 £5 £11 £23 Pickup Truck 2nd hand Quad bike £3,500 £2,000 Yes Yes £70 £40 Total Insurance Value 54 | P a g e £1,450 Harry Holt ‐ Farm Business Plan 1) Contractor Charges All Contractor prices taken from NAAB Area (ha) 53 53 23 70 23 138 110 70 Operation Ploughing Grass Drilling (inc reseed) Maize Drilling Silage Grass‐ Whole Operation (x 3 cuts) Silage Maize‐ Whole Operation Spraying Topping Hedge‐ Cutting (half farm‐ 40hours @ £34/hr) Annual Contractor Costs Rate/Ha Price £63 £29 £44 £119 £170 £13 £33 £34 £3,339 £1,537 £1,012 £24,990 £3,910 £1,794 £3,630 £2,800 £43,012 (Contractors, 2015) 2) Electricity Site Rate Cost House £2,000 p.a £2,000 Flat £2,000 p.a £2,000 Dairy Cows £34/hd £7,480 General £10/ha £1,380 Total Electricity Bill £12,860 3) Building Depreciation N/A 4) Property repairs Type Cost/Ha Dairy Hectares £30 138 Total Cost £4,140 Total (Nix, 2014) 55 | P a g e £4,140 Harry Holt ‐ Farm Business Plan 5) Labour Job Title Managing Partnership General Worker Salary £40,000 £23,000 Total Labour Cost £63,000 6) Rent 138ha @ £370/ha 7) Council Tax 8) Water Site House Flat Dairy Cows Other Cows £51,060 £900 Rate Cost £600 £600 £30/hd £10/hd £600 £600 £6,600 £1,380 Total Bill £9,180 9) Lime Of 116ha arable land 20% of total area/year @ £60/ha Of 21ha permanent pasture 10%/year @ £60/ha Total £1,392 £126 £1,518 10) Interest & Bank Charges £51,202 11) Accounts and Legal Advice 12) Miscellaneous £2000 56 | P a g e Area (ha) Rate/ha Total 138 £40 £5,520 Harry Holt ‐ Farm Business Plan Annex 8: Whole Farm Budget Fixed Costs Machinery Depreciation Machinery Repairs Fuel for Tractors Oil Fuel for Road Vehicles Road Tax Contractors' Charges Electricity Property Depreciation Property Repairs Labour Rent Council Tax Water Lime Interest & Bank charges Insurance Accountant Miscellaneous 57 | P a g e £ £10,506
£21,125
£11,404 £1,982 £1,812 £205 £52, £12,860 £0 £4,140 £25,000 £51,060 £900 £9,180 £1,518 £48,946 £1,450 £2,000 £5,520 £272,156
£353,358 Gross Margins Dairy Cow Beef Steers Beef Heifers Single Farm Payment Rental Income Loss No 220 69 69 138ha 12mths GM/head Total £1,013 £222,860 £571 £39,399 £455 £31,395 £20,700 £150/ha
£400/pca £4,800 -£34,204
£319,154 Harry Holt ‐ Farm Business Plan Curriculum vitae ‐ Harry J. Holt Droke Farm
Chichester
West Sussex
PO18 0JQ
DOB:
15/11/1991
Personal Statement I am an experienced, fourth generation farmer’s son, who has worked in a wide variety of agricultural industries including dairy, arable, beef and sheep as well as a period working on a vineyard in South Australia. I have been involved with operations on the family farm in Sussex from a very young age and have progressed to my current position of Assistant Manager. After completing my National Diploma in Agriculture at Sparsholt College in 2011, I was employed as a trainee Manager’s Assistant at Waddesdon Manor Estate in Buckinghamshire. During my tenure at Waddesdon I worked side by side with Alistair Brookes, 2010 Farmer’s Weekly Farm Manager of the Year, gaining extensive knowledge in arable, beef and sheep management. In 2013 I travelled to Australia where I worked on a cattle ranch and from there I spent a further period of time working and learning about the wine industry on a vineyard near Adelaide, South Australia. I have since returned home to the family farm which consists of over 900 acres of dairy and arable land and of which I am currently involved with day to day management. Soon after returning I have personally directed and have had sole management of a flock of store lambs which we buy in the autumn to sell fat in the spring. Since January 2015 I have under taken further education in the form of Agricultural Business Management at Bridgwater College, Somerset. Key Skills 







High standards of stockmanship, with a good judgment of animal wellbeing. A thorough understanding of crop husbandry Ability to manage staff efficiently with clear conduct Experience of a wide variety of farm machinery and competency to operate each with precision and safety Good prioritisation skills for smooth running of farm operations A willingness to finish all jobs to a high standard Constantly pushing for efficiency and maximising profitability from all aspects including workmanship, mechanical operations and livestock yield Ability to make friends easily and communicate with other people from agriculture and other industries to gain knowledge and understanding Employment History Growing up I was always involved with any operation on the family farm I was allowed to. 58 | P a g e Harry Holt ‐ Farm Business Plan From the ages of 13 – 15 I worked in the kitchen of a local Pub every weekend. Once I passed my tractor driving licence at 16 I continued to work at home. At 17 I did a season with a local contracting firm for the harvest of 2009 before going to college that September. The following season I worked for a different contracting firm which had a much larger area of clients to cover and so used very up to date and large machinery to carry out all arable operations. In 2011 I took employment at Waddesdon Manor under management of Alistair Brookes, where I continued to expand my arable knowledge and was involved in managing the 1000 head flock of ewe lambs and 150 Simmental suckler beef herd. In 2013 I travelled to Australia to find work on a cattle ranch in New South Wales and from there I continued south to Adelaide where I gained employment working on a vineyard farm which also had beef and sheep enterprises. I returned home to Sussex later in 2013 to take up position of assisting my father on the family farm which now consists of a high yielding dairy herd of 250 cows, 75 following heifers and some beef X alongside the store lamb enterprise which I am solely responsible for. Around 550 acres of the 900 acres of tenanted ground is either permanent pasture or forage for the dairy. In this we grow an Italian ryegrass and clover mix for cutting leys and around 100 acres of forage maize. The remaining 350 acres is in an arable rotation including wheat, spring barley and oil seed rape. Education Sparsholt Agricultural College, Hampshire – 2009 ‐ 2011 ‐ Level 3 National Diploma in Agriculture ‐ P.A 1 & 2 spray certificates ‐ Forklift/Telehandler certificate Personal Development ‐ D.I.Y Foot trimming Course – Embryonics Ltd – 2012 ‐ D.I.Y Artificial Insemination – The Livestock Partnership Vets – 2014 ‐ Staff Management and Communication – Cedar Associates – 2014 Bridgwater College, Cannington – Ongoing ‐ Foundation Degree in Agricultural Business Management Hobbies and Interests I am a very keen rugby player, and have enjoyed playing as flanker for my local Chichester team since I was 12. At every opportunity whilst I have been away from my home town I have joined the college rugby team at Sparsholt and Aylesbury RFC whilst working at Waddesdon Manor. I am like to keep fit and in shape for rugby so I run, cycle and swim as well as attend my local gym. In the past two years I have started to attend running and cycling events, giving myself goals to train for. 59 | P a g e Harry Holt ‐ Farm Business Plan At the age of 11 I took up playing guitar and have since learnt to play the drums as well and I am currently the drummer for a band in which our farm vet is the band leader and bass player. I love my country sports and enjoy shooting both rifle and shotgun whenever possible. In the past I have even taken up archery. I would also like to further my horse riding skills after getting a taste for it whilst mustering cattle in the Australian Outback. In the winter months I like to go snowboarding. I am fascinated by military history and enjoy to read books on everything from the rise and fall of the Roman Empire to autobiographies of those who have served in Iraq and Afghanistan. I am currently the Chairman of Chichester Young Farmers Club which I was involved with restarting in September 2014, after the club closed down in the 1990s. 60 | P a g e Harry Holt ‐ Farm Business Plan Cash Flow Year 1 Income Trading Milk Calves sold at 3 wks old Cull Cows Beef Single Farm Payment Capital Machinery Sales Loans Flat Rental Income Total Income Expenditure Livestock Purchases Dairy Cows Livestock Variable Costs Dairy Concentrate Vet & Med AI Miscellaneous Straw Beef Concentrate Calf Mixer 61 | P a g e 2015‐
16 £/l 0.23 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Total £30,922
£30,922
£30,922
£30,922 £30,922
£30,922
£30,922
£30,922
£30,922
£30,922
£30,922 £371,067 £5,100
£5,100
£3,070
£3,070
£3,070
£3,070 £3,070
£3,070
£3,070
£3,070
£3,070 £33,770 £3,070
£3,070
£10,200 £0 £0
£0 £200
£400
£400
£400
£400
£400
£400
£400
£400
£400
£400 £4,200 £34,192
£34,392
£34,392
£34,392 £34,392
£34,392
£39,492
£39,492
£34,392
£34,392
£34,392 £419,237 £264,000
£264,000 £11,025
£11,025
£11,025
£11,025
£11,025 £11,025
£11,025
£11,025
£11,025
£11,025
£11,025
£11,030 £132,305 £1,338
£1,338
£1,338
£1,338
£1,338 £1,338
£1,338
£1,338
£1,338
£1,338
£1,338
£1,342 £16,060 £1,613
£1,613
£1,613
£1,613
£1,613 £1,613
£1,613
£1,613
£1,613
£1,613
£1,613
£1,617 £19,360 £1,375
£1,375
£1,375
£1,375
£1,375 £1,375
£1,375
£1,375
£1,375
£1,375
£1,375
£1,375 £16,500 £2,200
£2,200
£2,200
£2,200
£2,200 £2,200
£0
£0
£0
£0
£0
£0
£13,200 £48
£96
£96
£391
£1,774 £1,774
£1,774
£1,774
£1,774
£1,774
£1,774
£1,792 £14,210 £391
£391
£391
£391
£391
£391
£391
£391 £4,692 Harry Holt ‐ Farm Business Plan Calf Rearer Milk Powder Vet & Med Straw Miscellaneous Crop Variable Costs Seed Fertiliser Sprays Silage Sheets Labour Permanent Power and Machinery Repairs Fuel and Oil Road Tax Contractors: Ploughing Drilling Silaging Spraying Topping Hedgecutting Electricity Property Costs Rent 62 | P a g e £1,150
£1,150
£1,150 £1,150
£1,150
£1,150
£1,150
£1,150
£1,150
£1,150 £13,800 £51
£102
£102
£102
£102
£102
£102
£102
£102
£102
£102
£102 £4,968 £218
£218
£218
£218
£218
£218
£218
£218
£218
£218
£218
£224 £2,622 £483
£483
£483
£483
£483
£483
£483
£483
£483
£483
£483
£483 £5,796 £483
£483
£483
£483
£483
£483
£483
£483
£483
£483
£483
£483 £5,796 £647
£1,916
£1,916
£1,916
£1,916
£1,916 £4,665
£13,194
£7,637
£647
£600
£4,665 £7,216
£6,597
£34,644 £647
£1,941 £600 £1,916
£1,916
£1,916
£1,916
£1,916
£1,916
£1,924 £1,760
£1,760
£1,760
£1,760 £1,266
£1,266
£1,266
£1,266
£1,266 £205
£1,760
£1,765
£1,760
£1,760
£1,760
£1,760
£1,760 £21,125 £1,266
£1,266
£1,266
£1,266
£1,266
£1,266
£1,272 £15,198 £205 £3,339
£3,339 £1,012
£598
£3,630
£2,800
£1,537
£9,164
£598
£7,913
£7,913
£2,549 £3,910 £598
£1,071
£1,400
£1,400
£1,400 £3,630 £2,800 £1,071
£1,000
£900
£900
£900
£900
£918 £12,765
£12,860 £12,765
£28,900 £1,794 £1,000
£23,000 £1,760
£1,200 £12,765
£12,765 £51,060 Harry Holt ‐ Farm Business Plan Council Tax Repairs Water Miscellaneous Overheads Lime Insurance Accountant Miscellaneous Finance Bank Charges Interest on Overdraft % p.a Loan HP/ Leasing Capital Machinery Buildings Ingoings Personal Private Drawings Tax & N.I Total Expenditure Opening Bank Balance Net Cash Flow Closing Bank Balance 63 | P a g e £690
£2,295
£690
£690
£2,295
£1,518
£1,450
£900
£460
£460
£460
£460
£690
£2,295
£690 £2,295
£9,180 £1,518 £1,450 £460
£2,000
£460
£460
£2,000 £460
£460
£460
£460 £0 £604
£896
£1,270
£1,521 £1,745
£155
£155
£155
£155
£155
£0 £2,159
£2,484
£2,815
£3,211
£3,439
£3,712 £23,855 £155
£155
£155
£155
£155
£155 £1,860 £13,682
£13,682
£13,683
£30,000
£5,520 £155
£4,140 £460
£900 £690
£0 £0 £0 £41,047 £0 £30,000 1666
1666
1666
1666
1666
1666
£340,664
£43,721
£56,050
£37,711
£33,541 £62,179
£250,000
‐£90,664
‐
£340,664 ‐£90,664
‐£43,721
‐
£134,385 ‐£56,050
‐
£190,435 ‐£37,711
‐
£228,146 ‐£33,541 ‐
£134,385 ‐
£190,435 ‐
£228,146 ‐
£261,687 £0 1666
1666
1666
1666
1666
1674 £20,000 £48,693
£49,629
£59,410
£34,271
£40,964
£49,829 ‐
£261,687 ‐£62,179
‐
£323,865 ‐£48,693
‐
£372,559 ‐£49,629
‐
£422,187 ‐£59,410
‐
£481,597 ‐£34,271
‐
£515,868 ‐£40,964
‐
£556,832 ‐£49,829 ‐
£323,865 ‐
£372,559 ‐
£422,187 ‐
£481,597 ‐
£515,868 ‐
£556,832 ‐
£606,661 £0 ‐
£856,661 Harry Holt ‐ Farm Business Plan 2016‐17 Income Trading £/l Milk 0.25 Calves Cull Cows 18 month beef steers 22 month beef heifers Single Farm Payment Capital Machinery Sales Loans Flat Rental Income Total Income Expenditure Livestock Purchases Dairy Cow Replacements Livestock Variable Costs Dairy Concentrate Vet & Med AI Miscellaneous Straw Beef Concentrate Calf Rearer Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Total £36,667
£36,667
£36,667
£36,667
£36,667
£36,667
£36,667
£36,667
£36,667
£36,667
£36,667
£36,667 £440,000 £5,100
£5,100
Cash Flow Year 2 64 | P a g e £3,070
£3,070
£3,070
£3,070
£3,070
£3,070
£3,070
£3,070
£3,070
£3,070
£3,080 36850 £6,353
£6,353
£6,353
£6,353
£6,353
£6,362 38127 £5,865
£5,865 £20,700
£11,730 20700 0 0 £400
£400
£400
£400
£400
£400 £400
£400
£400
£400
£400
£400
4800 £40,137
£40,137
£60,837
£40,137
£40,137
£40,137
£46,490
£51,590
£51,590
£46,490
£52,355
£52,374 £562,407 £6,188
£3,070
10200 £6,188
£6,188
£6,188
£6,188
£6,188
£6,188
£6,188
£6,188
£6,188
£6,188
£6,187 £74,250 £11,025
£11,025
£11,025
£11,025
£11,025
£11,025
£11,025
£11,025
£11,025
£11,025
£11,025
£11,030 £132,305 £1,338
£1,338
£1,338
£1,338
£1,338
£1,338
£1,338
£1,338
£1,338
£1,338
£1,338
£1,342 £16,060 £1,613
£1,613
£1,613
£1,613
£1,613
£1,613
£1,613
£1,613
£1,613
£1,613
£1,613
£1,617 £19,360 £1,375
£1,375
£1,375
£1,375
£1,375
£1,375
£1,375
£1,375
£1,375
£1,375
£1,375
£1,375 £16,500 £2,200
£2,200
£2,200
£2,200
£2,200
£2,200
£0
£0
£0
£0
£0
£0
£13,200 £1,774
£1,774
£1,774
£1,774
£1,774
£1,774
£1,774
£1,774
£1,774
£1,774
£1,774
£1,792 £21,306 £1,150
£1,150
£1,150
£1,150
£1,150
£1,150
£1,150
£1,150
£1,150
£1,150
£1,150
£1,150 £13,800 Harry Holt ‐ Farm Business Plan Calf Mixer Milk Powder Vet & Med Straw Miscellaneous Crop Variable Costs Seed Fertiliser Sprays Silage Sheets Labour Permenant Power and Machinery Repairs Fuel and Oil Road Tax Contractors: Ploughing Drilling Silaging Spraying Topping Hedgecutting Electricity Property Costs Rent 65 | P a g e £391
£391
£391
£391
£391
£391 £391
£391
£391
£391
£391
£391
£4,692 £414
£414
£414
£414
£414
£414 £414
£414
£414
£414
£414
£414
£4,968 £218
£218
£218
£218
£218
£218 £218
£218
£218
£218
£218
£224
£2,622 £483
£483
£483
£483
£483
£483 £483
£483
£483
£483
£483
£483
£5,796 £483
£483
£483
£483
£483
£483 £483
£483
£483
£483
£483
£483
£5,796 £12,169
£12,169
£647
£1,916
£1,916
£3,498
£1,167
£4,665 £1,916
£1,916
£1,916
£24,338 £647
£600
£647
£1,941 £600
£1,200 £1,916
£1,916
£1,916
£1,916
£1,916
£1,916
£1,924 £23,000 £0 £1,760
£1,760
£1,760
£1,760
£1,760
£1,760
£1,765
£1,760
£1,760
£1,760
£1,760
£1,760 £21,125 £1,266
£1,266
£1,266
£1,266
£1,266
£1,266
£1,266
£1,266
£1,266
£1,266
£1,266
£1,272 £15,198 £205
£205 £3,339
£3,339 £1,012
£598
£3,630
£2,800
£1,537
£9,164
£598
£7,913
£7,913
£2,549 £3,910 £598
£3,630 £2,800 £1,000
£1,071
£1,400
£1,400
£1,400
£1,071
£1,000
£900
£900
£900
£900
£918
£12,765
£12,860 £12,765
£28,900 £1,794 £12,765
£12,765 £51,060 Harry Holt ‐ Farm Business Plan Council Tax Repairs Water Miscellaneous Overheads Lime Insurance Accountant Miscellaneous Finance Bank Charges Interest on Overdraft % p.a Loan HP/ Leasing Capital Machinery Buildings Ingoings Personal Private Drawings Tax & N.I Total Expenditure Opening Bank Balance Net Cash Flow Closing Bank Balance 66 | P a g e £690
£2,295
£690
£690 £2,295
£1,518
£1,450
£900
£460
£460
£460
£460
£400
£690
£2,295
£690
£2,295
£4,140 £9,180 £1,518 £1,450 £460
£900 £690
£460 £2,000
£460
£460
£2,000 £460
£460
£460
£460
£5,520 £0 £4,044
£4,044
£4,274
£4,231
£4,290
£4,308
£155
£155
£155
£155
£155
£155 £400 £4,427
£4,441
£4,437
£4,499
£4,469
£4,451 £51,916 £155
£155
£155
£155
£155
£155
£1,860 £0 £0 £0 £0 £0 £0 1666
1666
1666
1666
1666
1666 £59,413
£55,367
£54,314
£48,945
£42,809
£58,047
‐
£606,661 ‐£19,276
‐
£625,937 ‐£15,230
‐
£641,167 £6,523
‐
£634,645 ‐£8,809
‐
£643,453 ‐£2,673
‐
£625,937 ‐
£641,167 ‐
£634,645 ‐
£643,453 ‐
£646,126 £0 1666
1666
1666
1666
1666
1674
£20,000 £48,656
£50,870
£60,934
£42,058
£49,661
£57,067 £628,143 ‐
£646,126 ‐£17,910
‐
£664,036 ‐£2,167
‐
£666,203 £720
‐
£665,483 ‐£9,344
‐
£674,828 £4,431
‐
£670,396 £2,694
‐
£667,702 ‐£4,694 ‐
£664,036 ‐
£666,203 ‐
£665,483 ‐
£674,828 ‐
£670,396 ‐
£667,702 ‐
£672,396 ‐£65,735 Harry Holt ‐ Farm Business Plan 2017‐
18 Income Trading £/l Milk 0.27 Calves Cull Cows 18 month beef steers 22 month beef heifers Single Farm Payment Capital Machinery Sales Loans Flat Rental Income Total Income Expenditure Livestock Purchases Dairy Cow Replacements Livestock Variable Costs Dairy Concentrate Vet & Med AI Miscellaneous Straw Beef Concentrate Cash Flow Year 3 67 | P a g e Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Total £39,600
£39,600
£39,600
£39,600
£39,600
£39,600
£39,600
£39,600
£39,600
£39,600
£39,600
£39,600
£475,200 £5,100
£5,100
£10,200 £3,070
£3,070
£3,070
£3,070
£3,070
£3,070
£3,070
£3,070
£3,070
£3,070
£3,070
£3,080
£36,850 £6,353
£6,353
£6,353
£6,353
£6,353
£6,353
£6,353
£6,353
£6,353
£6,353
£6,353
£6,362
£76,245 £5,865
£5,865
£5,865
£5,865
£5,865
£5,865
£5,865
£5,865
£5,865
£5,865
£5,865
£5,865
£70,380 £20,700
£20,700 £0
£0
£400 £400
£400
£400
£400
£400
£400 £400
£400
£400
£400
£400
£4,800 £55,288
£55,288
£75,988
£55,288
£55,288
£55,288
£55,288
£60,388
£60,388
£55,288
£55,288
£55,307
£694,375 £6,188
£6,188
£6,188
£6,188
£6,187
£74,250 £6,188
£6,188
£6,188
£6,188
£6,188
£6,188
£6,188
£11,025
£11,025
£11,025
£11,025
£11,025
£11,025
£11,025
£11,025
£11,025
£11,025
£11,025
£11,030
£132,305 £1,338
£1,338
£1,338
£1,338
£1,338
£1,338
£1,338
£1,338
£1,338
£1,338
£1,338
£1,342
£16,060 £1,613
£1,613
£1,613
£1,613
£1,613
£1,613
£1,613
£1,613
£1,613
£1,613
£1,613
£1,617
£19,360 £1,375
£1,375
£1,375
£1,375
£1,375
£1,375
£1,375
£1,375
£1,375
£1,375
£1,375
£1,375
£16,500 £2,200
£2,200
£2,200
£2,200
£2,200
£2,200
£0 £0
£0
£0
£0
£0
£13,200 £1,774
£1,774
£1,774
£1,774
£1,792
£21,306 £1,774
£1,774
£1,774
£1,774
£1,774
£1,774
£1,774
Harry Holt ‐ Farm Business Plan Calf Rearer Calf Mixer Milk Powder Vet & Med Straw Miscellaneous Crop Variable Costs Seed Fertiliser Sprays Silage Sheets Labour Permenant Power and Machinery Repairs Fuel and Oil Road Tax Contractors: Ploughing Drilling Silaging Spraying Topping Hedgecutting Electricity Property Costs 68 | P a g e £1,150
£1,150
£1,150
£1,150
£1,150
£1,150
£1,150
£1,150
£1,150
£1,150
£1,150
£1,150
£13,800 £391 £391
£391
£391
£391
£391
£391 £391
£391
£391
£391
£391
£4,692 £414 £414
£414
£414
£414
£414
£414 £414
£414
£414
£414
£414
£4,968 £218 £218
£218
£218
£218
£218
£218 £218
£218
£218
£218
£224
£2,622 £483 £483
£483
£483
£483
£483
£483 £483
£483
£483
£483
£483
£5,796 £483 £483
£483
£483
£483
£483
£483 £483
£483
£483
£483
£483
£5,796 £3,498
£12,169
£12,169
£4,665 £647
£24,338 £647 £600 £1,916
£1,167
£647
£1,941 £600
£1,200 £1,916
£1,916
£1,916
£1,916
£1,916
£1,916
£1,916
£1,916
£1,916
£1,916
£1,924
£23,000 £1,760
£1,760
£1,760
£1,760
£1,760
£1,760
£1,765
£1,760
£1,760
£1,760
£1,760
£1,760
£21,125 £1,266
£1,266
£1,266
£1,266
£1,266
£1,266
£1,266
£1,266
£1,266
£1,266
£1,266
£1,272
£15,198 £205
£3,339
£1,012
£598
£3,339 £1,537
£9,164
£598 £3,630
£2,800
£1,000
£205
£7,913
£7,913
£2,549 £3,910
£598
£28,900 £1,794 £3,630 £2,800 £1,071
£1,400
£1,400
£1,400
£1,071
£1,000
£900
£900
£900
£900
£918
£12,860 Harry Holt ‐ Farm Business Plan Rent Council Tax Repairs Water Miscellaneous Overheads Lime Insurance Accountant Miscellaneous Finance Bank Charges Interest on Overdraft % p.a Loan HP/ Leasing Capital Machinery Buildings Ingoings Personal Private Drawings Tax & N.I Total Expenditure Opening Bank Balance Net Cash Flow Closing Bank Balance 69 | P a g e £12,765
£12,765
£690
£690
£690
£2,295
£690
£690
£4,140 £2,295
£9,180 £1,518
£1,450
£460
£460
£460
£460
£460
£2,000
£460 £460
£400 £4,517
£4,374
£4,333
£4,250
£1,450 £4,513
£1,518 £155 £51,060 £4,483
£12,765
£900
£690
£2,295
£460 £12,765
£900 £2,295
£4,268
£2,000 £460
£460
£460
£460
£400
£4,222
£4,157
£4,159
£4,069
£4,029
£155
£155
£155
£155
£155
£155 £5,520 £51,372 £0
£155
£155
£155
£155
£155
£1,860 £0
£0
£0
£0
1666 1666
1666
1666
1666
1666
£59,851
1666 £0
1666
1666
1666
1666
1674
£20,000 £50,651
£60,655
£41,719
£49,260
£56,645
£627,599 £55,836
£54,556
£49,088
£42,852
£57,989
£48,497
‐
£672,396 ‐£4,563
‐
£676,959 ‐£548
‐
£677,507 £21,432
‐
£656,075 £6,200
‐
£649,875 £12,436
‐
£637,439 ‐£2,701
‐
£640,140 £6,791
‐
£633,350 £9,737
‐
£623,612 ‐£267
‐
£623,879 £13,569
‐
£610,310 £6,028
‐
£604,282 ‐£1,338
‐
£676,959 ‐
£677,507 ‐
£656,075 ‐
£649,875 ‐
£637,439 ‐
£640,140 ‐
£633,350 ‐
£623,612 ‐
£623,879 ‐
£610,310 ‐
£604,282 ‐
£605,620 Harry Holt ‐ Farm Business Plan 70 | P a g e Harry Holt ‐ Farm Business Plan Bibliography Agriaffairs, 2015. Agriaffairs machinery sales. [Online] Available at: http://www.agriaffaires.co.uk/ AHDB, 2015. Market Prices. [Online] Available at: http://dairy.ahdb.org.uk/market‐information/farming‐data/cull‐cow‐prices/gb‐cull‐
cow‐prices/#.VYGJU9RwZ8w Contractors, N. A. o. A., 2015. NAAC CONTRACTING CHARGES GUIDE 2015/16. [Online] Available at: http://www.naac.co.uk/userfiles/files/NAAC%20Contracting%20Charges%20Guide%202015‐16.pdf Dairy‐Co, 2015. Farmers Weekly Interactive‐ Prices and Trends. [Online] Available at: http://pages.fwi.co.uk/pdf/market‐prices/FWMP_Dairyco_Datum.pdf Fosters, 2015. Fosteres Yard Machinery. [Online] Available at: http://www.fostersalescompany.co.uk/pdf/price_list.pdf#page=5 Google, 2011. Google Earth. [Online] Available at: https://www.google.co.uk/intl/en_uk/earth/ Joskin, 2015. Joskin Slurry Handling Equipment. [Online] Available at: http://www.joskin.com/?page=epandeurs_de_lisier&user_lang=en Nix, J., 2014. Farm Management Pocketbook 2015 45th Edition. In: Farm Management Pocketbook. Melton Mowbray: Agro Business Consultants Ltd, p. 64. Trader, A., 2015. Auto Trader‐ Farm Machinery. [Online] Available at: http://farm.autotrader.co.uk/search?keywords=6m%20cambridge%20rolls&locationName=Taunton
&latitude=51.01494&longitude=‐3.10293&postcode=TA1 Weekly, F., 2015. Farmers Weekly Market Prices. [Online] Available at: http://pages.fwi.co.uk/pdf/market‐prices/FWMP_Rearing_Calves.pdf 71 | P a g e