"Hope" Business Plan ?

[Stocker Steve]

Some folks are realizing that hoping for higher prices is not always an effective business plan. I have recently seen adjustments here:

one small backgrounder who sold all his cattle a couple weeks ago
repair business has gotten slow
more retirement farm auctions
some additional grain bins are being built

What are you seeing?

 

[skyhightree1]

I am seeing prices drop like crazy here but no retirement auctions as of yet.

 

[Bigfoot]

Nobody I know is expanding their herd. Saw some more CRP ground being turned over this evening. Wheats the only thing I can think of they'd be getting ready to plant.

 

[TexasBred]

Haven't been to the sale barn but reading sale reports cattle seem to be coming down a bit. I know of several folks who are buying cattle and plan to continue. Real estate is moving like wild it seems and doesn't stay on the market long before someone snaps it up. A lot of new houses being built as well. And I guess everybody thinks they can make good mexican food. Seems there's a new greasy spoon popping up everyday selling the stuff.

 

[greybeard]

I bet there's 1/2 dozen of these and our population is less than 8000.

 

[Stocker Steve]

I suppose corn farmers could vertically integrate into tacos, but this is still hamburger country. :cowboy:
I just don't see local business growth outside of fitness centers, medical offices, and dental offices.
Dairy was driving farm land sales for a while, but that has stopped. Housing is still selling OK.

 

[kenny thomas]

Nothing happening here. Farmland and houses are rarely selling. Lots of layoff's in the coal mine and related industries. Probably 90% of the coal mines have closed down.

 

[Nesikep]

This is the land of high hopes and low expectations... LOTS of houses for sale, exorbitant prices, but NOTHING is moving... Around here instead of coal mines it's lumber mills, we have one and it's being run into the ground apparently, no maintenance, just run it til it quits. Land is a bit different, there's so little good land in this area it seems to hold it's value well, and will move as long as you're not in too much of a hurry to sell

 

[Aaron]

Very little land trading here right now. Cattle are staying stable, odd cow/calf guy here and there getting out or cutting back. Lots of older guys in 60's and 70's making plans on how to exit this high stake game in the coming years without paying out big-time in taxes.

 

[1982vett]

Nobody I know is expanding their herd. Saw some more CRP ground being turned over this evening. Wheats the only thing I can think of they'd be getting ready to plant.

I have been. Trying to get back to half a herd. I guess technically I'm their but I have a bunch of 12 year old cows.

In the past year our town has a new RV Park, a new truck stop/burger joint along with several new eateries. Constructing started on the Court House Annex with a new City Hall in the works. This all sounds good and looks good in print......but since oil broke $70, it is no longer problematic to find a parking spot anywhere downtown on the Court House Square.

Also seems the school district is in bind with their wish list.....with $40 oil, taxes collected on mineral interests is going to have to drop 60%.

 

[Bigfoot]

Nothing happening here. Farmland and houses are rarely selling. Lots of layoff's in the coal mine and related industries. Probably 90% of the coal mines have closed down.

Coal here has just about ran its course. Lotta those guys, its all they've ever done.

 

[Jogeephus]

Large corporate farms are buying up land here. Bill Gates is one. With California's water problems I think we will see this trend continue and I expect to see the Hispanic population grow exponentially.

 

[Nesikep]

Any ranch around here that's over 100 head or so has gone corporate.. Walmart, etc... some of these are HUGE ranches... Gang ranch, Douglas Lake ranch, etc... I think they have like 20,000 deeded acres, and 200,000 of leased land. Give it another 20 years or so and it'll be impossible for a family to have a ranch.
Another microsoft bigwig just recently bought a neighboring property.. about 80-100 acres... they bought the place so that they could relinquish the grazing lease in the 'grizzly bear habitat'. They have a young couple running it, I never see them doing any of the work, they have hired help for that.

 

[Stocker Steve]

Large corporate farms are buying up land here. Bill Gates is one. With California's water problems I think we will see this trend continue and I expect to see the Hispanic population grow exponentially.

What business advantages does the corporate farms have ?

 

[ga.prime]

Bill Gates bought the biggest onion farm in the Vidalia onion growing area. I don't know why. Gotta do something with all that wealth.

 

[highgrit]

http://farm.ewg.org/progdetail.php?fips ... regionname

It's the big money following the money trail. Look up those in your state that are getting the most subsidies. It makes me puke, the Holly rollers and rich folks that are playing the system. And making the tax payers pay for farm welfare.

 

[shaz]

I'm saving heifers but just to get my numbers back to where they were 5yrs ago. I don't see anyone expanding and land has gone up a good bit.

 

[ga.prime]

Foreign Nationals converted an abandoned Subway restaurant into a liquor store next door to the Patel Motel. Share the same parking lot. Good bet they share the same name. I haven't been in there but somebody said they have an anti-theft device on every bottle in the store.

 

[greybeard]

Nobody I know is expanding their herd. Saw some more CRP ground being turned over this evening. Wheats the only thing I can think of they'd be getting ready to plant.

I have been. Trying to get back to half a herd. I guess technically I'm their but I have a bunch of 12 year old cows.

In the past year our town has a new RV Park, a new truck stop/burger joint along with several new eateries. Constructing started on the Court House Annex with a new City Hall in the works. This all sounds good and looks good in print......but since oil broke $70, it is no longer problematic to find a parking spot anywhere downtown on the Court House Square.

Also seems the school district is in bind with their wish list.....with $40 oil, taxes collected on mineral interests is going to have to drop 60%.

I hate to hear that--it was always such a nice little town.
(I will be there this weekend for the K Festival)

 

[Stocker Steve]

The business experts now say that since hoping for higher prices is not working, farmers need to cut costs before they run out of cash. You wonder how much these experts get paid ???
I listened to a guy recently who said he was not going to farm the least productive 1/3 of his acres next year. He has no fence and no cattle - - so he is hoping for another government program. Back to hoping, again...