minn gopher - 1/12/2019 20:14
5 Head - 1/12/2019 18:44
Not really a surprise. Who wants to milk twice a day everyday?
These big dairies are investor driven. Some guy has a few million idle, gets talked into partnering on a dairy. Makes 8% on his money and is excited. Next year he loose 3%, can’t really cash out or he will loose 1/2 on his initial investment, so he dumps $250,000 into it to shore up his investment.
Small dairies have $2,000,000 tied up in land, machinery and facilities (low ball estimate) They are lucky to make a $100,000 a year. For this they get to milk 2 times a day, do chores and be married to the farm.
Been a long time since the investor made 8%. Very few investor dairys anyway.
Insightful article on Dairy Farming and consolidation
