How come farmers here make so little money?
Discussion
This is of genuine interest to me...I've always wanted to be a farmer, but there never seems to be much money in it...
I've been playing around with some figures for dairy, and the incomes seem to add up to pretty big numbers:
Average number of cows per hectare is around 2.5 to 3, so with 100 acres of land you'd be looking at around 120 cattle. With each producing cow, you might average 20 to 22 litres of milk a day, 365 days a year...roughly 960,000 litres per year. If the dairy pays 18.5p/litre, that's milk income of almost £180k per year. And then there could be subsidies and other income to top it up!
Am I missing something? Because I can't for the life of me work out how expenses on a well established, 100 acre farm, could be anywhere near that high. :confused:
I've been playing around with some figures for dairy, and the incomes seem to add up to pretty big numbers:
Average number of cows per hectare is around 2.5 to 3, so with 100 acres of land you'd be looking at around 120 cattle. With each producing cow, you might average 20 to 22 litres of milk a day, 365 days a year...roughly 960,000 litres per year. If the dairy pays 18.5p/litre, that's milk income of almost £180k per year. And then there could be subsidies and other income to top it up!
Am I missing something? Because I can't for the life of me work out how expenses on a well established, 100 acre farm, could be anywhere near that high. :confused:
"Recent research by the Milk Development Council reveals that, despite supermarkets increasing the price of a litre of milk by 3.5 pence, virtually none of that increase has been seen by the farmers. Farmers are paid less than the costs of producing milk. The retail price of a litre of milk is around 50 pence, with supermarkets suspected of taking around 22-24 pence of that. Dairy farmers receive around 17 pence – 2 pence below the cost of production. Last year this resulted in six out of every 10 dairy farmers failing to cover their costs. In the last five years 700 dairy farms in Scotland have gone out of business."
Quick google
Quick google
vets bills, feed bills, diesel (i know its tax free but it adds up when you run say, four 6 litre tractors), running repairs; (tyres on my mates ford tractor last back end came to £1175 for the four), mortgage, employment of 1 labourer, contractors to be paid, buildings, rent of land, the list is endless. you get fined for anything and everything. And now the government have scrapped subsidies for producing food and have introduced a "single payment scheme", which pays farmers not to produce food but turn england into one giant nature reserve to entertain stupid rambling townies. so where does the milk come from? Poland, mostly. Meat? anywhere but here. . sorry if that came over as a rant, but i feel really strongly on this sort of thing.
Do you want farmers to make more money?
I do.
I also (unlike the sheep in the supermarkets) realise the difference between using a Butcher's shop for meat (and cheese, eggs etc), and the crap in Tesco.
Try it, really. Just go to the nearest Butcher on your street and buy your meat from there. If you can't taste the difference, you must have an asbestos tongue.
I also get my milk delivered from a milkman. Not so much profit there for the farmer, but certainly more than if you buy it from the supermarket.
I do.
I also (unlike the sheep in the supermarkets) realise the difference between using a Butcher's shop for meat (and cheese, eggs etc), and the crap in Tesco.
Try it, really. Just go to the nearest Butcher on your street and buy your meat from there. If you can't taste the difference, you must have an asbestos tongue.
I also get my milk delivered from a milkman. Not so much profit there for the farmer, but certainly more than if you buy it from the supermarket.
rolyrat said:
on a lighter note and as a slight aside, has anyone ever tasted fresh milk? i mean straight out of the cow? if not you should endevour to do so. it cant be beaten. not like the white water from the shops. Roland
Well, it can be beaten by a good dose of e-coli, which is what you risk by drinking unpasteurised milk...
You also have to look at the CAP (Common agricultural Policy). I did this in geography, and we saw a video about this guy who was a crop farmer. He had loads of land and a huge turnover, but also got a grant of £200,000 per year from the CAP, but he reckoned that without that he would be making a £180k loss each year because of staff and the way supermarkets etc f**k them over for profits.
anonymous said:
[redacted]
but people drank unpasteurised milk etc. for ages. I sometimes think food is too safe. I like to live a little. Why take all your risks driving fast cars? If every bowl of cereal you have is a dice with death surely life becomes more exciting.
"and since we know an end will come, it makes our living fun"
People always forget the capital outlay for business. Not sure how much a cow is, but guessing you could buy a small car for the money, X 120 is mega bucks. Interest payments alone would see you watering down the milk, feeding dead cows to other live cows, switching ear tags and having sex with the prettiest cow (OK I added that last one, but worth a try?).
Gassing Station | The Pie & Piston Archive | Top of Page | What's New | My Stuff



