» Property Details
Property Details
Summary
• Yanakie farm is located in South Gippsland overlooking the sea. It has a beautiful outlook with some subdivision potential in a growing tourist area.
• The farm purchase includes a runoff block close by for production of silage, summering of dry cows and grazing of dairy heifers.
• An excellent management team and system is in place.
• The farm offers solid infrastructure including a 50 bail rotary and simple layout.
• The property is located in a higher rainfall area with good reliability of grass production through the autumn, winter, and spring. Summers are typically dry.
• Cash returns are projected at 10% plus from year two onwards.
• The farm purchase includes a runoff block close by for production of silage, summering of dry cows and grazing of dairy heifers.
• An excellent management team and system is in place.
• The farm offers solid infrastructure including a 50 bail rotary and simple layout.
• The property is located in a higher rainfall area with good reliability of grass production through the autumn, winter, and spring. Summers are typically dry.
• Cash returns are projected at 10% plus from year two onwards.
Business Plan
The business plan is based upon the farm having a reliable autumn, winter and spring in terms of grass growth rate, followed by a dry summer.
A conservative stocking rate is planned at 2.2 cows per ha (550 cows) on 250 ha (the milking platform), plus support land of 64 ha.
Moderate concentrate feeding levels of 1.2 to 1.5 tonne/cow/annum are planned, with a range of feeding levels of 2 to 6 kg/cow/day. The conservative stocking rate policy allows significant silage conservation, with replacement heifers being grazed on farm.
The excellent management team on the farm will remain. Management support is to be supplied by Neil Lane (Intelact) along with AGInvest Limited
Opportunities will be evaluated on an ongoing basis. There is scope for leasing adjoining land, and increasing the amount of grass grown and utilized. Stock numbers would therefore be targeted to increase to 600 cows over time. The runoff block has potential to play a far bigger role than being achieved at the moment with further development of fertility, pastures, and the use of fodder crops.
Investment Returns
Cash returns are projected at 4% in year one, increasing to 10% plus thereafter, (based on the milk price improving to approximately 40 cents per litre and improved production) Capital gain is expected to further enhance the returns.
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|
2010 |
2011 |
2012 |
2013 |
2014 |
|
Surplus (000) |
$158k |
$359k |
$435k |
$485k |
$645k |
|
Cash return |
3.72% |
8.42% |
10.2% |
11.38% |
15.13% |