House/Croft Prices Falling?

[paulb]

we don't. cant see a profit on a small one. 180 acre as in papa just about. bigger the better

[Carlos]

Thinking in accountancy terms, I doubt there would be many that made a profit if all hours work were paid at minimum wage first....

[Ghostrider]

Profit? Depends if you're talking before subsidies, or after. With Subs, yeah its easy enough to make a decent profit. Before Subs, not so much, profit, usually yes, a profit to make it worth continuing as a sound investment, probably not.

 

Carlos is right though, in purely £/hr terms, even the with Subs profit its questionable just how many turn in enough to pay minimum wage. Some undoubtedly do, and a good chunk more, it all depends on the set up and practices, but many very likely don't even start to get close.

[fionajohn]

i think you may be missing the point as most small crofters have a full time job and crofting is a hobby sideline something on the table call it what you will so wages dont really come into the equation for a lot of shetlanders it was a way of life and not easy to give up

[oxna]

It's a lot to do with economy of scale, the same as most businesses. The major difference, however, is that the subsidies afforded to the crofting "industry" are in excess of the entire revenues generated by the crofting, believe it or not. Is that a sustainable situation?

[Carlos]

i think you may be missing the point as most small crofters have a full time job and crofting is a hobby sideline something on the table call it what you will so wages dont really come into the equation for a lot of shetlanders it was a way of life and not easy to give up

That's the point I was trying to bring out - to be clear on what you mean by "profit".

 

If you enjoy crofting, it is not too hard to set it up as a "self financing hobby" to do alongside another job, and get your reward from enjoying doing what you do.

If you are thinking in terms of buying into a business that can pay wages for each hour worked, and still make an annual return on the investment, then that is something different.

[MuckleJoannie]

The croft is for sale here

 

AUCTION DATE

31st Jan 2013

 

http://www.wilsonsauctions.com/land-property-search-results/829

[papastour]

I see the guide price has gone up from £75000 with no bidders to £125000

 

Please be aware that the 60 acres of scattald is common grazing land shared with with 3 crofts ( Hurdiback, part Olligarth & Forewick) Robinas owner has automatic useage to the scattald as part of the croft land

You cant sell something that doesn't belong to you.

 

Perhaps it might sell now that it is a HIGHER PRICE ?

 

John Lewis never knowingly undersold?

[paulb]

could always apply for an appointment if they want.

[ll]

Maybe the large difference between buying price could be down to something like all of the livestock, implements, machinery and single farm payment entitlements necessary to maintain a viable income level operating this croft have been auctioned off?

 

Would be like buying a fishing boat with no fishing gear or entitlements to catch fish?

[papastour]

Based on info my friend has aquirred

NOT ALL CROFTS have a SINGLE FARM SUPPLEMENT

 

The knock on effect is crofts like Hurdiback have NO ACTIVE GRANTS so

it is down to how good a farmer you are to make a living and what other diversification you can achieve ie Tourism, Food production etc

 

Should Crofts get grants?

 

Crofts that do not get grants How do they cope with competition that do get grants and make a living?

If Crofts get grants, should they all get grants so as to encourage them to work the land? From what I have experienced Crofting (with no grants) for a living is a waste of time and money.

 

But the satisfaction of growing your own food, nothing like it. Better still sharing home grown food with your friends round a dinner table is a great feeling. But it does not pay the bills.

[paulb]

ours does not get any grants or eu payments as the owner 15 years ago failed to do the paper works cost us and the previous owner thousands.

 

why would a croft of that size not have payments that would be have been very dumb of them.

[Ghostrider]

A buyer could commence receiving subsidies by registering the land as eligible under the IACS and purchasing SFPS entitlements.

 

The entitlement purchase costs of course would have to be considered as part of the overall investment, and the purchase price of the land revised accordingly.

[papastour]

I dont know who you are Ghostrider, but I have often admired your comments and wisdom on various subjects

 

Thanks

[papastour]

I see living on Papa Stour is like living in NORWAY based on Link below

 

http://travel.yahoo.com/ideas/world-s-happiest-countries-233204795.html

 

Any views anyone?