Lesson 1: Grazing infrastructure for profitable dairy farming
Success in dairy farming hinges on effective grazing infrastructure. This means having well-managed grassland that keeps your feed costs low and your cows healthy. You should focus on things like reseeding, paddock design, roadways, and water trough placement to maximise productivity.
Lesson 2: Facilities aligned with cow numbers
It’s important to have facilities that match the size of your herd. You need to have enough housing, feeding, and milking infrastructure to keep things running smoothly. If you’re just starting out, you’ll need to assess and upgrade your facilities as your herd grows.
Lesson 3: Be smart about spending money
While new equipment is tempting, cost-effective capital planning is key. You can save money by repurposing or upgrading existing structures. Careful financial planning is crucial, with each investment weighed against its long-term impact on the farm’s profitability.
Lesson 4: Financial discipline for long-term success
Stick to your budget to avoid overspending. You need to carefully evaluate your expenses to make sure you’re making a profit. It’s important to be disciplined with your finances to keep your farm financially healthy.
Lesson 5: Cash flow management strategies
Starting a dairy farm requires a lot of upfront investment, and it takes time to start making money. You should plan for cash flow challenges in the first three years. You can do this by developing a comprehensive capital budget and considering interest-only repayments for the first 12 months to ease financial strain during the farm’s establishment.
Lesson 6: Protecting reliable income streams
There are some financial support programmes available for dairy farmers, for example, consistent DAFM payments can be a reliable income stream. Ensure compliance with eligibility criteria to secure this financial support.
In summary, managing your expenses and improving your milk production are key to running a successful and sustainable dairy farm. If you’re thinking about starting a dairy farm, you can learn a lot from the experiences of others. You should seek advice from experienced farmers, attend workshops, and stay informed about advancements in dairy farming practices to help you on your journey.
New Entrant Farm Report
| 2020 Pre Year | 2021 1st Milk Year | 2022 2nd Year Milk | ||
|---|---|---|---|---|
| Milk | Income | €- | €140,495 | €251,489 |
| Litres | 345,015 | 429,172 | ||
| C/L | €0.41 | €0.59 | ||
| No. of Cows | 71 | 80 | ||
| Stock | Sales | €74,071 | €10,418 | €17,187 |
| Purchases | -€25,261 | -€60,150 | -€4,730 | |
| €48,810 | -€49,732 | €12,457 | ||
| Tillage | €12,726 | €8,915 | €12,064 | |
| Total | €61,536 | €99,678 | €276,010 | |
| Expenses | ||||
| Total Expenses | €55,151 | €102,646 | €146,562 | |
| Surplus | €6,385 | -€2,968 | €129,448 | |
| DAFM | €21,809 | €21,488 | €21,784 | |
| Net Profit | €28,194 | €18,520 | €151,232 |
This article was first published in our 2024 Irish Farm Report.
