Posted by rrlund on February 17, 2023 at 10:37:38 from (173.225.203.213):
In Reply to: Re: price of farming posted by Stuart on February 17, 2023 at 09:57:53:
The dairy herd buyout in the 80s was paid for by the government. They figured they might as well pay it all up front and remove those cows all at once, thus lowering production, than keep trickling the dollars out by buying surplus milk being produced by those cows. You had to bid on it by telling them how many dollars per hundred weight you would take for your last years production, to sell your cows for beef and stay out of the business for five years.
There was another buyout in about 2003 that was producer funded. I bid on that one. I was going to sell my cows anyway, so what the heck. I bid way too high just based in what the government had paid in the 80s, but I knew what I had to have to make it come out to what I could get selling them as dairy cows, which I did in November of 03. I guess that one must had some limited success, because milk prices were starting to recover when I sold the cows, so I did OK on them, but my heifers became a real valuable commodity by the time I bred all of them and sold them.
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