I saw where Goose stated that where he lived the codes did not allow any new feed lot within a mile of existing homes. That would just about make it impossible to build any new live stock buildings. I was wondering where this is at. I would also bet that those type of rules have slowly driven the cattle out of his area.
What the greenies/tree huggers don"t realize is that these type of laws/rules actually make the livestock concentration move more quickly. A small operation is not going to have the resources to fight these type of rules. The smaller guys the greenies say they want to help are the first to go under livestock restriction laws. Think a twenty head cattle feeder is going to be able to hire much in the way of an attorney???
There are still quite a lot of cattle feeders around me here in North east Iowa. Those feeders and the dairies here sure help when the grain prices go down. Think seven dollar corn and thirteen dollar soybean are going to be the new normal???? Let see how $300-$400 dollar an acre rent works when the markets go back down. They do not have to drop real low for the red ink to start to flow. Think $3.50-$4.00 corn works with the current input costs?
I don"t want anyone to suffer hardships but there seems to be an lot of farmer that have forgotten the lessons learned in the late 1970s and early 1980s. Buying land based on some other value other than its economic production capacity will hang you in the long run.
A forty acre field right up the road just rented for $465 per acre. It just came out of CRP. So they will not get a real great crop this year on that sod and low fertility. It takes several years to get that CRP ground back up to good production levels.
I know two different guys that rented their farms this year because of the high rents. Both kept their equipment and will farm their ground again when rents go back down. It sure is tempting to rent the ground when you can rent it for more clear money than you will make most years.
One of the big mega farmers told me he will rent the ground if he can show a $50 per acre profit. So on a gross of maybe over a $1000 per acre he will take fifty??? That does not leave much room for error. Think about how a few hundred dollars per acre loss will work if you have several thousand acres?? It will happen when these grain prices adjust. You always hope to make enough profit when it goes up to survive it coming back down.
What the greenies/tree huggers don"t realize is that these type of laws/rules actually make the livestock concentration move more quickly. A small operation is not going to have the resources to fight these type of rules. The smaller guys the greenies say they want to help are the first to go under livestock restriction laws. Think a twenty head cattle feeder is going to be able to hire much in the way of an attorney???
There are still quite a lot of cattle feeders around me here in North east Iowa. Those feeders and the dairies here sure help when the grain prices go down. Think seven dollar corn and thirteen dollar soybean are going to be the new normal???? Let see how $300-$400 dollar an acre rent works when the markets go back down. They do not have to drop real low for the red ink to start to flow. Think $3.50-$4.00 corn works with the current input costs?
I don"t want anyone to suffer hardships but there seems to be an lot of farmer that have forgotten the lessons learned in the late 1970s and early 1980s. Buying land based on some other value other than its economic production capacity will hang you in the long run.
A forty acre field right up the road just rented for $465 per acre. It just came out of CRP. So they will not get a real great crop this year on that sod and low fertility. It takes several years to get that CRP ground back up to good production levels.
I know two different guys that rented their farms this year because of the high rents. Both kept their equipment and will farm their ground again when rents go back down. It sure is tempting to rent the ground when you can rent it for more clear money than you will make most years.
One of the big mega farmers told me he will rent the ground if he can show a $50 per acre profit. So on a gross of maybe over a $1000 per acre he will take fifty??? That does not leave much room for error. Think about how a few hundred dollars per acre loss will work if you have several thousand acres?? It will happen when these grain prices adjust. You always hope to make enough profit when it goes up to survive it coming back down.