Running the numbers

rrlund · May 7, 2015

I saw the new BTO in the neighborhood was working around here today. There were 5 QuadTracs running south of town. I got about 20 miles south and met three of their tractors on the road,each pulling what were probably 24 row planters.
I know this outfit got most of Stamp Farms when they went bankrupt a year or two ago,something close to 40,000 acres. They're farming all over the southern half of Michigan. From what I've heard they were working 96,000 acres last year and are up to 125,000 this year. The equipment they had up here today was just a drop in the bucket. Some of the numbers I've heard are just staggering. Like 36 combines,60 new semi tractors just to throw out a few figures.
I got to pondering those acres. To get everything planted in 30 days,you'd have to average 4166 acres a day. To harvest it in 60 days would require 2083 acres a day. Wow! How in the world could an operation even get to this point?

centash · May 7, 2015

I don't envy them for a second. They must run on a pretty tight margin; imagine the loss one would face if the crop price dropped even a nickel below their cost input. Then, are they really farmers or are they operations managers? Do they get to feel the sun on their face as they are planting? Do they smell the soil as the cultivator levels it? Do they feel the same pride as you and I do as they see their crop emege and prosper? Give me my few hundred acres any day; I feel in touch with nature and God's creation and I can support my family as well as spend time with them.

Ben

jm. · May 7, 2015

Would be awful easy for something to fall thru the cracks in an operation that big. Must have some good managers and good help. Think how many flat tires he will have in the morning..

Formerly PaMike · May 7, 2015

They must have almost everything on the cost and selling side contracted. I cant imagine how you could possibly do it anyother way. Makes you wonder how they can make money with corn where it is...

rrlund · May 7, 2015

They already chisel plowed a field south of town that wasn't theirs. Saved some work for the guy who was renting the place anyway I guess. I wish I could bait them in to working mine and getting it planted for me before I could tell them they were wrong.
One thing I did notice today. They are up here now where we have rocks. They had turned some up and with all the stuff they had with them,I didn't see one single loader or stone picker.

el6147 · May 7, 2015

I,m located in the town Stamp and his dad started in , he took over his dads operation after his dad went bankrupt, they financially beat up many people in their quest to be big and left this town a mess here , Cargill now owns the elevator and now that pig needs to be feed so land prices are stupid here. The one that took over all his land is till buying and just purchased 60 acres next to me. my 50 acres not sits right in the middle of all the property that he either farms or owns, 150 year old trees don't stand a chance here , they destroyed the fence row between us. and everything around me is getting planted to potatoes.

LAA · May 7, 2015

Cash flow and revenue per employee is why the bank lets them do it. Lease all of the equipment and its 100% deductible along with all the inputs and labor and rent to write off, efficiency has to be high with that type of equipment, forward contracts and hedgeing, when it all comes out in the wash they are probably making more per acre than than the majority of people farming 3-4 hundred acres with paid for equipment.

donjr · May 7, 2015

The old adage goes, "The bigger they are, the harder they fall....."

Dopp Creek · May 7, 2015

Wendell Berry said the soles of the farmer's boots are the best fertilizer

Royse · May 7, 2015

I saw some of that equipment yesterday. Any idea who it is?
They're not farming on my road, but Gordy's crew bought some
land up the road from me. About 30 acres I would guess.
At lease that's the rumor, I haven't talked to him to know they
bought it. That would add to the thousands they lease.
They removed all the trees and rock piles from that land and had
the backhoe and dump truck removing rocks from the land across
the road from me for a week or so. They even trimmed all the
trees along the road so their equipment would clear.

Farmall43 · May 8, 2015

They are renting a couple thousand acres maybe even 4 in my area around leslie and paying over 300 an acre so I am told

rrlund · May 8, 2015

Boersen. Married in to the DeVoss family I guess,using family money.
If you get down there south of Wright Way Carpet,take a look at the place on the east side that he bought. There's a pile of trees and stumps out there that they've pushed up that must cover an acre. Gonna be one heck of a fire when they touch it off.
He got all of Steve's ground here south of Sheridan,more than 500 acres.

rrlund · May 8, 2015

I've heard from a dealer,about ten leased QuadTracs,but I heard too that he has 60 that he bought,along with the combines and new trucks. They're running Deere's on the planters. I don't know what the deal is on those. One story was that he went in to GreenMark wanting to lease 25 and they turned him down. They said they couldn't sell that many lease returns,so I don't know if he got them someplace else or bought them outright.

formenwhogrow · May 8, 2015

You're dam right.

Ron Muhlenkamp · May 8, 2015

Have you considered going over to admire their tractors, hopping in the cab, and reprogramming the GPS? : )=

K Effective · May 8, 2015

Stamps messed stuff up enough around here as it was, now these guys are even more extreme. I was told the money source is a Wall Street investment fund, but Amway could be possible as well.

They farm a field next to a friend of mine, had a 60 foot tree fall from the fencerow last summer, sprayed and harvested around it the rest of last year, chiseled around it in the fall, and planted around it this spring. Seems like it would be impossible to move a loader tractor/operator/truck that far and wide to keep up on little things like that.

Same friend said Boersens were nearly all corn, and tillage on all acres, but someone here said they grew potatoes, so who knows for sure.

When he was up and going, Stamp was buying 25-40 new Deeres a year nearby, with many shipped to Florida from MI when assembled. The service manager said they would push a dead tractor to the edge of the field until they had four or five that needed service, then fly the repair guy from MI down to FLA to fix 'em all.

Paul from MI · May 9, 2015

They took over from Wiler Farms here in Branch & Hillsdale Counties when he went belly up this spring. Wiler expanded very fast when prices were high and went down the same way when they returned to a more normal level. My understanding is that some landlords didn't get paid out of the deal. I also heard there was Amway money behind Boersen.

rrlund · May 9, 2015

Some of both. I've heard it was an investment firm out of Indiana that bought some land here,but that Boersen was married in to the DeVos (Amway) family. (Operating capital)

I know what you mean by them needing a loader following these crews. They turned up some big rocks south of town,I didn't see a loader or stone picker among the stuff in their traveling circus.

Running the numbers

rrlund

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centash

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jm.

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Formerly PaMike

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rrlund

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el6147

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LAA

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donjr

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Dopp Creek

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Royse

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Farmall43

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rrlund

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rrlund

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formenwhogrow

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Ron Muhlenkamp

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K Effective

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Paul from MI

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rrlund

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