SRQCUB
Sophomore Member
- Joined
- May 23, 2008
- Professional Status
- Certified General Appraiser
- State
- Florida
Farm history, 11 years ago owner woke up, got into dairy biz, on 350 acres, family owned land, ten years later and after failure, leases dairy operation to local comglomerate,
Currently leases out dairy portion of property 210 acres for $42,000 a year. Per lessee this is a very generous lease taking into consideration of $300,000 of improvements made, of which approxiamtly $270,000 is personal property, pivot irrigation, milk storage. What stays is the improvements ($30,000) made to the 32 cow milking station, Wiakato, parabone line-up system. At concurance of lease which is a whopping 3 years with 2 years remaing there is a 50/50 chance the lessee will stay. And thus leaving the the owner with his old failing dairy operation. Per lessee this was a very generious situation for the owner. As detailed by the over market price per acre $200, take out milking parlor, $150 an acre and the lessee had to install pivot, concurancy etc..., after he removes irrigation and said end of lease, we are looking at $40-50 an acre for pasture.
Second soucre of income is from, waste managemant disposal, there is no contract owner says income could be gone tommorow. Has averaged about $100,000 last three years via tax returns from waste management.
Has a $450,000 nitrogen reduction system, that was provided via a grant and has been inoperational for the last two years. Per installer system might not be able to be brought back on-line, and therefore worthless.
Loan is based on $142,000 net farm income, and i'm capped out at that right now, with no positive future forcast for this properties future income, nor for the future for small dairy farms in general in the state of FL.
However potential gross income with property due dillignece, management, could be obtainable, maybe, property is permitted for 599 cows, turn residential yard waste, nitrogen reduction system has potential.
Report has to be written to CV101 standards and Farmer Mac requirements, for the life of me I can't see how this is going to go threw.
Providing a hypothetical analysis on the potential gross income still does not wain from what is actually being produced on the property today, plus the owner has a poor history of biz management.
Can I chew a ear with a expericanced farm appraiser.
Currently leases out dairy portion of property 210 acres for $42,000 a year. Per lessee this is a very generous lease taking into consideration of $300,000 of improvements made, of which approxiamtly $270,000 is personal property, pivot irrigation, milk storage. What stays is the improvements ($30,000) made to the 32 cow milking station, Wiakato, parabone line-up system. At concurance of lease which is a whopping 3 years with 2 years remaing there is a 50/50 chance the lessee will stay. And thus leaving the the owner with his old failing dairy operation. Per lessee this was a very generious situation for the owner. As detailed by the over market price per acre $200, take out milking parlor, $150 an acre and the lessee had to install pivot, concurancy etc..., after he removes irrigation and said end of lease, we are looking at $40-50 an acre for pasture.
Second soucre of income is from, waste managemant disposal, there is no contract owner says income could be gone tommorow. Has averaged about $100,000 last three years via tax returns from waste management.
Has a $450,000 nitrogen reduction system, that was provided via a grant and has been inoperational for the last two years. Per installer system might not be able to be brought back on-line, and therefore worthless.
Loan is based on $142,000 net farm income, and i'm capped out at that right now, with no positive future forcast for this properties future income, nor for the future for small dairy farms in general in the state of FL.
However potential gross income with property due dillignece, management, could be obtainable, maybe, property is permitted for 599 cows, turn residential yard waste, nitrogen reduction system has potential.
Report has to be written to CV101 standards and Farmer Mac requirements, for the life of me I can't see how this is going to go threw.
Providing a hypothetical analysis on the potential gross income still does not wain from what is actually being produced on the property today, plus the owner has a poor history of biz management.
Can I chew a ear with a expericanced farm appraiser.
