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To build or not to build based on the election?
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Loren SE IA
Posted 11/5/2012 02:03 (#2679079)
Subject: To build or not to build based on the election?


Kalona, IA

I'm wanting to expand my current cage free egg layer operation soon. I currently have a 10k hen operation  that  was put up 9 flocks ago with a lot of used equipment and and a building that was a horse barn that I put up in my place and made it usable for hens. It would work fairly well for a machine shed as I designed it like that back then, as I thought the chicken thing may not work out. It is extremely labor intensive as I spend approx. 8 hrs. a day in chicken related chores. A lot of things are getting close to needing replacment and new FDA and humane regs. make it very difficult to comply as things currently are. I have no machine shed to store my bigger pcs. of machinery and the chicken house when emptied out would work fairly well for machinery.

 We have a local processing/marketing Co. that buys our production along with about 40 other producers. We have a payment system on a sliding scale based on input costs which takes a lot of risk from high grain prices out of the equation. Profit increases are only made by increased and or more efficient production. I'm currently satisfied with the fact I can make a profit in this enviroment.

 I would like to expand to 26k hens in 2 buildings so as to always have a building in production at all times as the "downtime" of no income for 2 mo. makes payments kinda difficult during no cash flow periods.

Now the real battle that I'm facing internally is the fact that I would need to finance a large % of the project. Currently the interest rates are very low, it would seem like a good time to do this.

But....I personally do NOT trust what Obama would do to America if re-elected to the point of very possibly not being willing in taking the risk of making that large of an investment ($700k) not being confident of our long term economy and everything that would go along with him not being afraid of re-election. I think financial collapse would be very possible. Not a good place to be when highly leveraged.

When Romney is elected (I believe he will be) we could have a lot of people like me that will quickly invest in and expand their businesses which could possibly cause quick inflation and higher interest rates to try and slow the inflation which in turn could be disastrous also.

What do people with brighter minds then me think?

I would be able to able to have the loans paid in 8 yrs. based on current equations.

Sorry for the long post and I hope this is the right place to post these questions.

Thanks!



Edited by Loren SE IA 11/5/2012 02:14
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