Farm Ireland

Sunday 18 February 2018

Cool quota opportunity

Jim O'Brien

Jim O'Brien

When a Cork-based auctioneer is handling the sale of a property in north Roscommon, one would rightly suspect that a sizeable milk quota is at the heart of the deal.

And so it is with a unique property located at Tullyvohaun, near Boyle. The 65ac non-residential farm comes with a substantial milk quota of 161,563ga. This works out at a remarkable land to milk ratio of 2,485ga, or 11,300l/ac. The property, which is for sale by private treaty, is being guided at €13,000/ac, or €845,000. The price is based on a valuation for the land of €7,500/ac, with the quota being priced at €5,500/ac, or 48.7c/l.

According to selling agent Eamonn O'Brien, of CCM Property, Mitchelstown, Co Cork, ministerial approval has been granted for the sale of the land and quota.

The vendor is a dairy farmer who used the land solely for milk production, buying in all his replacement stock along with his fodder requirements over the years. The man is now leaving farming and intends to keep 10ac of his 75ac holding along with the farmhouse and farm buildings.

"The property is ideal for someone looking for extra milk quota," says Mr O'Brien.

"The land to quota ratio is excellent, there are no buildings or entitlements to complicate matters.

"It is purely milk on the minimum amount of land."

The land itself is of mixed quality but has been excellently farmed by the current owner. It is well fenced and watered and enjoys extensive road frontage.

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Mr O'Brien explains that it may be possible to sell the property in lots with varying amounts of quota appropriate to each lot.

The option of buying the property in lots is one of a number on offer. Mr O'Brien explains that the vendor is prepared to lease back the land for a three-year period.

In another option, the vendor will contract to rear the breeding stock for the new owner on the 65ac, thus freeing up grazing ground at the purchaser's home farm to fill the additional quota.

For dairy farmers that are over quota, the property may be particularly attractive as the buyers will be able to use it to offset any superlevy exposure should the sale be agreed by March 31.

Mr O'Brien expects huge southern dairy interest in this property. He points out that the reduction of stamp duty from 6pc to 2pc in the recent Budget will also benefit for sale.

"At the recent milk exchange, a price of 50c/l in Dairygold and 46c/l in Glanbia was recorded," he says.

"Meanwhile, only 6pc of farmers were able to buy what they wanted in terms of quota. There is a hunger for quota out there."

Indo Farming