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| The logic for separation would be spreading growing condition risk and the reason I would do it is opportunity. It would make sense to me if I had the chance to double my farm size through a friend retiring, change of land ownership where the new owners liked me, etc. or, in other words, expanding into a situation where I didn't have to attempt going broke by significantly changing my business model (and I'm not afraid of cash rent). As farmers we are inside traders all the time - who we know and are related to often dictates our farm size.
Consider that there will be costs to cover that distance, so you'll already be at a disadvantage to someone local. If it's a revolving door farm with a new tenant every year because deal only works half the time for anyone local, I'd probably let that sit - no special prize for farming more acres and not making a dime than I am now (or potentially losing).
Again, when everyone is falling all over themselves to pay $10 more than the highest coffee shop rent, it might be best to save your money. The best time is when everyone thinks it's a mistake and especially when no one else has any money. Counter the trend - it takes a lot of discipline sometimes, but it pays off.
One more thing, we are all equipped to farm probably 3x the ground we do depending on whether or not you think it's complete failure to have harvest last 3 weeks instead of 5 days, so it's another discipline point to do the expansion without running to the dealer to buy the latest machine for $500K that will become worth $250K, $120K, $65K and $15K impressively fast.
Can't blame a guy for taking opportunities when the come up since they just don't happen that often and we usually can't time when they happen. On the other hand it's not a good idea to be like the 80's cartoon on the subject of the 55mph speed limit - old couple going 35 in an RV, wife barks at husband to speed up to 55 so they can start saving all that gas. Like they say in racing - race your race and don't be solely motivated by what the neighbor or the magazines say you should do. | |
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How do I start farming in a new region?
