SE Manitoba | beef14 - 11/28/2015 16:14
I'm a young farmer just turned 17 looking for some advice. I keep 200 Holsteins on my dads property. Have around 100 head in his barns and 100 calves in hutches. I put all the gates, fences and waterers and water lines in the barn to get them ready for feeders. Also, I own all the hutches but have them on his land. He has given me so many opportunities so I'd like to pay him a fair rate. What should be the daily rate on the barns and hutches per head? Also, he lets me use his loader tractor when I need to clean up manure and he spreads it on his fields. I currently pay the electricity bill on the property. Any input is appreciated. Thanks
I'll disagree with most of your other respondents (a little anyway).
If you are making a profit on these animals then I would be paying a so much per hour rate on the loader tractor. That's to cover the depreciation.
If that still leaves you in the black ask around as to what yard space and barn space cost. The guys here don't seem to be giving you those answers but there are other conversations on stocktalk where these kind of numbers have come up.
If your dad insists he doesn't want the money, tell him thank you very very much and put that money to one side. Think of it like a rainy day fund. You might want to consider putting it into something for your retirement (mutual funds) at your age you have tons of time and that will up the value of even small investments. If your location is somewhat close to a more urban area you might want to consider getting a share of some kind of real estate in that area if you are comfortable in asking people for rent and dealing with tenant issues. Commercial real estate is better but has its own issues.
I would agree that whatever help your dad gives that you pass that on to your own family when the time comes. I think that making the next generation work for their success helps them do better in the long term and that's why I suggest pulling the funds even if your dad doesn't want them. All the best as you start this sometimes hard but rarely easy road for a life!! |
What's a fair rate?
