28 August 2023

Farmyard development – plan carefully

This time of year is often where plans are put into place for farmyard development. The upcoming winter and following spring are coming back into mind.

Whether it is a new cubicle shed, parlour, calf housing, extra slurry storage or silage pits, they all require time to get the physical and financial planning right.

Cost, location, size and cow/machinery traffic flow are the main criteria that need to be taken into account. Of the four items, which one is most important? Which should be discussed first?

Cost is often the main driver of design and location of development work. This is very understandable, particularly now with building cost increases. However, if you focus too much on cost from the outset to the detriment of good design, you may end up not having made best use of your hard earned capital.

In many yards, if there is an existing building that can be in some way used to cut initial costs, this is where most people will want to start the new building or extension. Is this always the right place to start?

Compromising on cow flow or ease of managing stock is never the right thing to do, even if you have to spend more on a different location. Similarly, machinery access for feeding and cleaning, preferably without crossing animal areas, is critically important for an efficient work layout. This should not be compromised for modest short-term savings.

Of course, the scope for having an ideal design is limited by repayment capacity; a business plan is required to calculate this. A business plan takes into account your current average income, cost of production, drawings and when you current loans are reducing. This gives a clear indication on timing of borrowing, potential improvements to increase income and reduce costs. All farm development plans should start with a business plan. Speak to your Teagasc advisor about business and farm development planning.

This article first appeared in the August Teagasc Dairy Advisory Newsletter, edited by Joe Patton, Teagasc Head of Dairy Knowledge Transfer. To access the entire newsletter, click here.

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