Revisiting the farm families that took part in this series, it was great to see how some have done very well and managed to get out of the financial difficulty they were in. However, others have continued to struggle with their finances – it can feel like taking two steps forward and one step back at times.
Tom took part in Operation Cashflow in 2012.
“I was in a bad way when you first came. I followed your advice and I still do, to a certain extent,” he told me during my revisit.
Having gone through a divorce, Tom had to sell land to pay for the solicitor and barrister fees, and settle with his ex-wife. He had a farm debt of €40,000 and just 20 bullocks on the 110 acres he farmed.
With three children in college, there were big expenses around education and Tom felt he didn’t have enough money to live on. He wanted to start again and build up stock numbers. He basically needed a fresh pair of eyes to look at his situation and point him in the right direction.
The three-year plan we set out at the time was simple:
• Continue to sell silage where possible.• Buy in 30 calves.• With the money from the bullocks, buy some older cattle to replace those that will be finished next autumn/spring.• Slowly build up stock numbers.Tom made great progress in the first 12 months. He bought 30 calves and reared them well in spring. After he sold the bullocks, he purchased 20 lighter bullocks, bringing the total number to 50. By cutting costs, Tom has also held on to his Single Farm Payment (SFP) of €25,000 and made a farm profit of €30,000.
When I visited him this July, his stock numbers have grown to over 100 when you count the factory bullocks, weanlings and calves. We added the value up and it came to nearly €75,000 – compared with the €15,000 of stock he had in 2012.
“I am in a system where I buy 30-40 calves a year and rear them. I will have bullocks to sell shortly and the money is not all due for bills. I have also moved on from buying all Friesian bull calves to some Angus, and will continue to do this to add value,” said Tom.
“The farm loan of €40,000 is also being paid. My SFP is falling, but by keeping costs low and selling silage, I am making over €30,000 a year,” he added. Looking at Tom’s net worth, there has been a jump of over €80,000 in the last three and a half years.
One thing Tom got into the habit of doing during Operation Cashflow was writing down his household spending in a notebook.
“I quickly realised what it costs to live and how I could make savings,” said Tom. “However, with most of the pressure off, I don’t do this anymore. I don’t need to, as I find I have a habit of being careful with what I spend on.”
He continues to plan the meals for the week ahead before going shopping, which cuts out impulse buying. He has also developed a saving habit.
“I have been putting €50 a week in the credit union for a rainy day fund,” says Tom.
It’s not all for that though. It has allowed him to take a break or two away from the farm.
Tom has also started a livery business in the stables in the yard.
“I love seeing the horses in the boxes and meeting new people. I have met some lovely people and it has been extremely sociable. This is my fourth summer in business. It was hard work to start with, but as my confidence and knowledge have increased, it got easier. I am busy all year round and full for the summer. As the children are too old for summer jobs, I started employing someone locally to help. The business is bringing in over €15,000 a year.”
When we started talking about this part of the enterprise, Tom began smiling.
“I’m also getting married, even though it wasn’t in the plan,” said Tom. He met his fiancée through the horse livery business and their friendship has blossomed in the last three years.
Looking back, it just shows how things can change over time. Tom never believed he could get his stock numbers back up, start a new business he enjoys and now be getting married again. He said he’s grateful to have been a part of Operation Cashflow.
Tom was definitely one of the farmers who did the work needed to make the difference to his business. I can only wish him happiness as he looks forward to his big day.
Revisiting the farm families that took part in this series, it was great to see how some have done very well and managed to get out of the financial difficulty they were in. However, others have continued to struggle with their finances – it can feel like taking two steps forward and one step back at times.
Tom took part in Operation Cashflow in 2012.
“I was in a bad way when you first came. I followed your advice and I still do, to a certain extent,” he told me during my revisit.
Having gone through a divorce, Tom had to sell land to pay for the solicitor and barrister fees, and settle with his ex-wife. He had a farm debt of €40,000 and just 20 bullocks on the 110 acres he farmed.
With three children in college, there were big expenses around education and Tom felt he didn’t have enough money to live on. He wanted to start again and build up stock numbers. He basically needed a fresh pair of eyes to look at his situation and point him in the right direction.
The three-year plan we set out at the time was simple:
• Continue to sell silage where possible.• Buy in 30 calves.• With the money from the bullocks, buy some older cattle to replace those that will be finished next autumn/spring.• Slowly build up stock numbers.Tom made great progress in the first 12 months. He bought 30 calves and reared them well in spring. After he sold the bullocks, he purchased 20 lighter bullocks, bringing the total number to 50. By cutting costs, Tom has also held on to his Single Farm Payment (SFP) of €25,000 and made a farm profit of €30,000.
When I visited him this July, his stock numbers have grown to over 100 when you count the factory bullocks, weanlings and calves. We added the value up and it came to nearly €75,000 – compared with the €15,000 of stock he had in 2012.
“I am in a system where I buy 30-40 calves a year and rear them. I will have bullocks to sell shortly and the money is not all due for bills. I have also moved on from buying all Friesian bull calves to some Angus, and will continue to do this to add value,” said Tom.
“The farm loan of €40,000 is also being paid. My SFP is falling, but by keeping costs low and selling silage, I am making over €30,000 a year,” he added. Looking at Tom’s net worth, there has been a jump of over €80,000 in the last three and a half years.
One thing Tom got into the habit of doing during Operation Cashflow was writing down his household spending in a notebook.
“I quickly realised what it costs to live and how I could make savings,” said Tom. “However, with most of the pressure off, I don’t do this anymore. I don’t need to, as I find I have a habit of being careful with what I spend on.”
He continues to plan the meals for the week ahead before going shopping, which cuts out impulse buying. He has also developed a saving habit.
“I have been putting €50 a week in the credit union for a rainy day fund,” says Tom.
It’s not all for that though. It has allowed him to take a break or two away from the farm.
Tom has also started a livery business in the stables in the yard.
“I love seeing the horses in the boxes and meeting new people. I have met some lovely people and it has been extremely sociable. This is my fourth summer in business. It was hard work to start with, but as my confidence and knowledge have increased, it got easier. I am busy all year round and full for the summer. As the children are too old for summer jobs, I started employing someone locally to help. The business is bringing in over €15,000 a year.”
When we started talking about this part of the enterprise, Tom began smiling.
“I’m also getting married, even though it wasn’t in the plan,” said Tom. He met his fiancée through the horse livery business and their friendship has blossomed in the last three years.
Looking back, it just shows how things can change over time. Tom never believed he could get his stock numbers back up, start a new business he enjoys and now be getting married again. He said he’s grateful to have been a part of Operation Cashflow.
Tom was definitely one of the farmers who did the work needed to make the difference to his business. I can only wish him happiness as he looks forward to his big day.
SHARING OPTIONS