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return on investment
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MCatSHF
Posted 8/28/2013 08:05 (#3293813 - in reply to #3293713)
Subject: RE: return on investment



Sandy Hook, MB

Hello Dairyman78

That's the part of the business that I hate! I'm happy to be out in the tractor farming, but hate to be in the office doing the books! I try to run my operation with ROI in mind. I buy used equipment instead of brand new to avoid the initial hit of depreciation the first time you use that machine. I also resist pouring concrete & putting up any more buildings than I absolutely have to because I will never get my $ back from the investment. I've read on here about farmers getting their $ back for concrete silage pads in 1 or 2 years because of the savings in spoiled feed. It would take me a lifetime to recoup that cost here. Concrete has hit $200/yd here this summer, yet I can get 3/4 down limestone for around $15/yd. The same goes for grain storage. I wont pour concrete & put up any more flat bottom bins here. A 3/4 down limestone base & a hopper bin on a skid instead. That hopper bin will hold it's value & can easily be moved to the new owner's location when I sell it, but that flat bottom bin will have very little resale value & that concrete base will be worthless.

It might be different for others, but for me I know that the next owners of my land wont be growing crops & raising livestock, they will be growing houses. 

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