by MrBill » Sun 09 Apr 2006, 11:21:14
$this->bbcode_second_pass_quote('Pops', 'T')hanks Mr. Bill, I’ve enjoyed many of your posts as well, more stuff on grass farming if you are interested:
http://www.peakoil.com/fortopic14556.html
Thanks for the link. Will go over it in detail. Okay, basically you have several problems where I am from, and one ironically is due to high oil prices.
Basically, in the area, there has been enough oil & gas leases that it drive up the price of a quarter section because the owner hopes to get rent for the land based on oil & gas leases and not just farming, or he or she works in oil & gas or related industry and therefore can subsidize their farming from an outside income. Both make marginal farmland more expensive than can be justified by ' current' prices and yields alone.
However, long term I am confident. In the area I am from, grassing makes sense. Hills and no chance to irrigate. Lot's of water, but the wrong soil type. It is marginal farmland for cropping although we can make a decent crop out of canola and or barley, but barely. The machines are too expensive. My step brothers cousins can do it because they are 4 and have 3000 acres of cropland and a feedlot operation. My step sisters husbands family can do it because again they are full time ranchers and have enough of their own land and enough land under lease to make it pay. But for the small operator, it is not cost efficient. The best I can do is buy and rent to them, with which high oil & gas lease prices is not economical unless I am speculating on higher prices in the future.
Also, due to poor soil, limited precipitation and steep hills the land is not super productive, and cattle have to be wintered. Therefore you need grazing land in the summer and hay or alfalfa for the winter, plus pole sheds to get the cattle out of the worst of the weather. I see grazing and pasture as the best bet, but will still need to over winter the breeding herd or just take on summer steers. Then I am exposed to price trends.
As well some of the land is more suited to wild animals like deer or maybe sheep, but with sheep it is hard due to coyotes. A fence system might work, but it is expensive to put in 6 foot fences everywhere and make sure coyotes cannot burrow under. Capital costs up front. Best when you have an outside income and it is a hobby right now.
Lot's of issues. Glad to know some others are doing the heavy intellectual lifting for me, so I look forward to reading your posts on these subjects. thanks.
The organized state is a wonderful invention whereby everyone can live at someone else's expense.