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sw363535
Honored Advisor

Re: TID BITS

Don't want to comment on this too much, but I have watched Nick's work since he came back from School to put his mark on the family farm.... He is a good person, neighbor, and community leader.

I am having mixed feelings as Nick probably is as well.  Bill Gates would be a step down for a neighbor, but then we would probably give him a chance.  I doubt Bill will move in to manage it.  And if he did .... he won't improve on what the Hatchers have done.  I been connected enough to see how they treat the people who work with them and have been impressed at every turn.  They are as nice as they seem.

sw

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wrightcattle
Veteran Advisor

Re: TID BITS


@sw363535 wrote:

Don't want to comment on this too much, but I have watched Nick's work since he came back from School to put his mark on the family farm.... He is a good person, neighbor, and community leader.

I am having mixed feelings as Nick probably is as well.  Bill Gates would be a step down for a neighbor, but then we would probably give him a chance.  I doubt Bill will move in to manage it.  And if he did .... he won't improve on what the Hatchers have done.  I been connected enough to see how they treat the people who work with them and have been impressed at every turn.  They are as nice as they seem.

sw


One thing bout the billionaire club is they support and help higher priced land levels in areas they buy. 

It can help Your financial statements and Time for Your borrowing too. 

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sw363535
Honored Advisor

Re: TID BITS

This is a catch22 issue..... If the west coast tech lottery winners sweep in and make this look good, then land prices for ground that still has good water will skyrocket again and a family who lives in farming this area will not be able to buy land for at least 20 years. 

We have seen good land with good water in this area sell for $5+K per acre a couple of times---- only to resell for lower prices at least 3 to  4 times in a 10 year period.  It doesn't take long for the new owners to understand the cost of lifting rain water from underground (or the fact that the right to use that water is not guaranteed by a title but only by a weak government promise).  Add to that -- the US work force does not choose agriculture for a career.  Government guarantees they don't have to.  And we all complain about the locations we live in .... but few will ever move out of them.  And technology affordable enough to produce in abundance cheaply is still far out..... pun not intended.

This is one of the reasons IMO production of commodities in the US has peaked..  Usda never takes into account the cost of reaching their production models or that those costs are rising faster than their record crop yield model.  $5 corn looked like a heavenly price ten years ago.  Now with costs (including land costs & irrigation maintenance) approaching $4.70 in the SW.... Is $5 corn all that good..... and with environmental science on steroids costs will rise.  And most of us have not gotten $5 for a corn crop and won't for another year.  More than ever a producer cannot afford to optimize yield in the higher risk noncornbelt regions of production.  Or should I say in areas where the land does not provide most of the input costs.

As I have said before ....... half of those record crops are raised on the fringe where water comes from somewhere other than the clouds.  That water is taxed and regulated at ever higher rates.  Cloud water in excess may be taxed in other ways than land prices and is already in subtle ways.

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