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dairy/farmbill/MILC
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chadincolo
Posted 12/14/2012 12:06 (#2751317 - in reply to #2750136)
Subject: RE: dairy/farmbill/MILC


Lander, WY
I've been wondering what's going on too... Big dairy (starting at 5000 milking) is supposedly going in a couple miles from me. Owners are out of upstate NY, supposed to own a bunch of dairies, but you know how rumors can be. The company listed as owners of the land is out of New York state. I say supposedly going in, they have moved a TON of dirt, rumor is $1.3 million in dirt work, but they are pulling equipment out now. They bought the land with some irrigation wells, at least some of those wells (and ones owned by others) had their pumping stopped due to water rights/augmentation issues (so I've heard). Company has applied for a new livestock well, but it's a closed groundwater basin.

For those unfamiliar with Colorado water law, wells are permited based on what formation they get water from, what their useage is, and what the end use is. You can't buy a house, enlarge the well and water crops, and you can't buy a farm and start using the irrigation permited well to water cows.

There is a large cheese plant coming online in Greeley, with several dairies going in Weld county to feed it, but on this one, what do they know that we don't? Why would a company spend $2 million plus to get started on something when they don't have water? I keep hearing dairy is slim to no margins, and this company is going to spend $5mil plus and see enough profit that they are willing to risk starting up construction without having water secured?
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