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Kaukauna WI | I see a lesson is in order as to what my definition of 'capital intensive' really means. It does not mean land. It does not mean cattle (beef OR dairy), sheep, or hogs.
Being capital intensive has more to do with the type of real estate improvements that must be made in order to dairy. Even grazers to a lesser extent need some of these. This is why dairy is not an easy in/easy out business. So many of the assets necessary are worth only half as much the day you install them, because they cannot be sold until you sell the farm.
Examples: Milking parlors, freestall barns, manure pits, reception pits and pumps, large areas of concrete made specifically for silage piles, ventilation fans, silos (and unloaders to a certain extent), barn cleaners/chains, rubber mats, cow mattresses, etc etc etc.
I'm not talking about fertilizer, seed, chemicals, tractors, machinery, land, all-purpose sheds.....
Capuch? | |
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Capital intensive
