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Capital intensive
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cousinit
Posted 4/19/2012 21:50 (#2344644 - in reply to #2344592)
Subject: RE: How about a lesson in what capital is?


Kaukauna WI
Look at it this way.....it's about collateral. It's about business value and risk.

We put down about $xxxk worth of concrete last fall, with reception pits and pumps. We are only a 185 cow, single family operation.

The bank could care less. They do not want to lend money for such ventures. It did not add value to our farm. It did not make our farm worth more if we want to sell it. The bank could not sell it off if we could not make our payments. It basically is there just for our perusal. We did it to save money on feed (less feed waste).

Hog people: You have to enlighten me on hogs. I have a feeling hogs is much like dairy......is it easy to start a hog operation? Is it easy to get out of a hog operation?

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