Grain Storage Facility

[Anonymous]

Wondering if someone has any Agri grain storage comps. The subject is new, $600,000 renovations of a Co-op Feed mill, milling dairy and cattle feed for local farmers. Has rail access.

 

[Tom Hildebrandt]

Terrel

Out of my league, good luck.

Regards

Tom Hildebrandt GAA

 

[DK]

Wondering if someone has any Agri grain storage comps. The subject is new, $600,000 renovations of a Co-op Feed mill, milling dairy and cattle feed for local farmers. Has rail access.

Terrel,
Try contacting some of the large regional cooperatives like Farmland or Cenex, whoever is in your area. If you can get the right person, they know what facilities have changed ownership.

Best of Luck
Dave Koenigshof

 

[Damon Pedersen]

Terrill:

I know of some grain elevator sales here in Iowa. Nothing of that dollar amount, but at least it would give you a starting place. Jim Payne from Vermillion was doing a grain elevator/storage facility last summer and I gave him some comparable information, but I don't know if he found something else or not. Jim does occasionally post in the main forum so you may want to contact him. I saw he recently posted under the sales tax on appraisals thread.

I am not sure where you are located, but going outside of the area looking for comps may not be reliable. Up here we have corn and soybean storage facilities. Storage facilities are set up accordingly and have different cost than facilities set up to handle wheat, etc. The last grain elevator appraisal I was involved in relied heavily on the cost approach and market data was supplemental only. I would suggest the same to you.

Typically, buyers of these large facilities is limited to surrounding competing grain elevators and a small handfull of large farmers who could afford such a thing. Therefore, if there are sales of smaller grain handling facilities say in the 100,000 bushel range, the sale price per bushel would have to be discounted somewhat to equal the subject property's value per bushel of storage. That does give you a starting point, however.

Damon

 

[Ted Martin]

Check with you state weights and measures department, if the the elevators are under their control they will know which once changed hands.

 

[Jim Payne (SD)]

Hi Terrel, Damon, ksappraiser, DK and Tom:

Yes, I have done numerous Grain Storage Systems along with Grain Elevators with Rail Access.

If you need any comparables--please email me on Thursday of this week at jjpa@dtgnet.com and I will email them back to you.

If you need anything else... just hollar

Jim Payne (Yankton, SD)

 

[Anonymous]

Thanks Jim. I have avoided the assignment so far, but suspect I will have to deal with it the next time the examiners hit the bank as they always follow up of the prior visit's write ups. About June.

Got a worse assignment. Small grain mill (no biggie problem) but at an commercial egg operation that is now defunct. they are still selling feed but the egg houses (80,000 SF of them) and the egg warehouse (chill room and egg sorters) are idle. Worse, lagoon is EPA permitted and I and the lender are arguing over how to estimate a cost to close (Lagoon is for the egg houses which are shot - the ammonia has eat huge holes in the metal roof and corroded most of the electrical fixtures. I am trying to get them to estimate the closure. I have a environmental remediation cost book, but i don't trust the numbers, even though my state DEQ buddies (two of my old classmates are Environmental scientists with the State) think it is no biggie to suck up the juice and doze in the pit...yeah, right.

 

[Jim Payne (SD)]

Thanks Jim. I have avoided the assignment so far, but suspect I will have to deal with it the next time the examiners hit the bank as they always follow up of the prior visit's write ups. About June.

Got a worse assignment. Small grain mill (no biggie problem) but at an commercial egg operation that is now defunct. they are still selling feed but the egg houses (80,000 SF of them) and the egg warehouse (chill room and egg sorters) are idle. Worse, lagoon is EPA permitted and I and the lender are arguing over how to estimate a cost to close (Lagoon is for the egg houses which are shot - the ammonia has eat huge holes in the metal roof and corroded most of the electrical fixtures. I am trying to get them to estimate the closure. I have a environmental remediation cost book, but i don't trust the numbers, even though my state DEQ buddies (two of my old classmates are Environmental scientists with the State) think it is no biggie to suck up the juice and doze in the pit...yeah, right.

<span style='color:blue'> Terrel:

Guess you need to move to another area... I haven't had that kind of Polution up here YET... We have "New" Hog Barns coming in up here... Time Will Tell On Those... I am betting that 8 Years will show less than 20% Salvage on them...

Hope you had a good Easter!

Let me know when you need those Grain Facilities Comps... Right Now I am working on a Funeral Home... Traveled Northeast Nebraska all day Thursday (28th) and am going to Pierre (Our State Capitol-Central SD) tomorrow to get more information from the Funeral Director's Association.

Take Care!

Jim Payne (SD)</span>