1. Unlocking the potential within your farm Maria Heneghan Kevin Connolly

10. Sheep track walk

11. Maze in the Maize

12. Catering and meeting facilities on the farm

14. Your Equity! What is it? Why is it important? Can it be better utilised?

15. Case Study Westmeath Drystock Farm Established Self-Catering Enterprise Established Bed & Breakfast Family- Husband & Wife & 3 children

16. Farm Details 110 acres (44.5 Ha) Running 45 suckler cows – selling weanlings Good facilities & sufficient slurry storage

17. Self-catering enterprise Set-up in 1999 in vacant farm house Taking up to 6 people 20 week occupancy

18. The makeup of business profits (2005) €47,340 Total Profit Profit from farming SFP Other Premia Self- Catering €0 €10,000 €20,000 €30,000 €40,000 €50,000 Net Cash Flow = €35,000

19. Total Net Cash Income Single Farm Payment Net Cash Income from farming Non-farm income State Transfers Family Living Expenses Tax Balance for Reinvestment

20. The Balance Sheet Farm Business Debt  Small O/D & stocking loans Existing self-catering project  Outstanding €15,000 loan Assets valuation (2005)  Land €17,000/ acre - €1.87 million  Self-catering unit - €150,000 Total Owners Equity = €2 million

21. Business Goals Cash flow Better utilisation of available assets Planned retirement/ exit strategy

22. Options Look at the farming system Push the self-catering harder Use the equity available for off-farm investment  Property at home or abroad OR  Look at other tourism options

23. Making the decision! Potential identified to tap into the demand for ancillary services  Supplying food – evening meals/ suppers  Opportunities to sell farm & local produce  Develop potential for walking trails on the farm Decision made!  expand in the tourism business using a bed & breakfast to exploit the potential identified!

24. How this option was funded Key costs  Conversion of existing farm house  Tracking out the farm walks – minimum cost Total cost of conversion - €150,000 To be borrowed over 15 years @ 6.5%  Annual repayment = €15,700

25. Borrowing for diversification Issues Identified & Discussed  Affordability of repayments Net Cash Flow from new business Stress test for rising rates  Using the farm as collateral Matching security to loan value Land as security –negotiate lower interest rates  Limitations on future borrowing?

32. The makeup of business profits (2007) €81,640 Total Profit Net Cash Flow = €59,500

35. Unlocking the potential within your farm Maria Heneghan Kevin Connolly