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| I have spent probably 2 hours looking at this over the last couple of days. It just blows my mind. I come up with $80 million for just the dirt. And that would be top dollar for those counties. I have no idea what the bin setup, 5K head feedlot, or 85 irrigation pivots would be worth.
They have a map on the website and the land is all blocked together which is amazing for that many acres. When you got the row crop end of things, you would be a me to accomplish a lot on any given day since you would mainly be in full sections with the next field being across the fence/road.
I can’t imagine the line of credit you would need to operate this property. 5,000 head of feeder cattle would probably run you $7.5-10 million or more. Probably $1-1.5 million for seed, $500k chemical, $2-2.5 million for fertilizer. Crop insurance, diesel fuel, unknown repairs, and the list goes on. 200 bushel corn would be great, but how many of your corn acres would need to go towards the feed lot? It says in the ad that a neighbor must run 2,750 cows on the stalks for 125 days at $.90-1.25 per day. That would be $300K+ per year for stalk grazing.
My next thought is how much machinery you would need to operate this? 2-3 wheel loaders, 3-4 combines, a silage chopper, balers, windrowers, 2-3 high speed planters, big air seeder, manure spreaders, probably 2 sprayers with nurse trailers, 10 semis? $10 million in machinery might not get you that close.
Finally, to finance it…. Say you get it bought for $150 million. If you were able to get a 3.9% interest rate on that for 30 years, your payment would be $8.5 million per year. At 7% it would be $12 million per year. I checked the local ethanol plant the coops that buy grain in that area. Looks like the corn bids are around $3.75 a bushel. Hopefully you can make good money on the feed lot! | |
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Bigggggg farm for sale in central South dakota
