coonie moonie : While I agree with the idea of higher education helping you in life in practice it does not work that way much of the time. I have seen too many educated idiots come back to a successful farm and quickly run it into the ground. For every one that makes it I can name 2-3 that do not. Farming is a very capitol intense business anymore. There is very little room for errors in tight times.
I am afraid this deal could very easily take my friend out of farming. He is successful but not on a scale to handle this type of purchase without it generating income/profit right away. The custom chopping market already has several large operators in this area. It is not like they can not get the crop harvested.
I think this kid just seen the numbers of the crew he was working with and thinks he can duplicate that here. Finding the dairies that utilize these large choppers is few and far between here. Another friend has one of the largest dairy's in this area, 1200 cows. He is an excellent manager/numbers guy. He told me he can hire chopping done for the same amount he was paying 25 years ago. This is a cost per ton of feed chopped. The custom guys here are going to so much an hour for everything. My friend has his farm organized to were they can move massive amounts of corn silage short distances involving HUGH tonnages. This young man is trying to get into a market that has excess capacity in it locally.
Then add in to this is the fact that the Dairies that buy the milk put everyone on a production quota in the last few months. This will make expanding tough to do. They will only buy the same amount of milk that you sold two years ago. So adding large numbers of cows is not going to work now.
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