- Many dairymen frustrated by the economics of the dairy economy put their dairies for sale. Today there is a much sweeter disposition within the industry; feed costs are still high yet milk seems to be a bit more valuable now than in the near past.
“After three years of lackluster dairy sales, the third quarter of 2011 has shown an increase in dairies being purchased” stated Marc Schuil co-founder of Schuil and Associates, Inc. - agricultural land specialists in California, Arizona, New Mexico, Texas, and Colorado. Schuil added that the recent dairy sale activity has moved many dairy properties from the “dairies for sale” column to the “dairy sold” column on their http://www.schuil.com website.
According to Schuil & Associates, over the last two years dairy farms have taken a severe hit due to low milk prices and feed costs that would not allow them to catch their breath. Many dairymen frustrated by the economics of the dairy economy put their dairies for sale. Today there is a much sweeter disposition within the industry; feed costs are still high yet milk seems to be a bit more valuable now than in the near past. The risks are still great as dairymen try to ascertain the volatility of the industry. The strengthening dollar, the migration of feed corn to ethanol, the increasing world demand for protein related commodities have created a much more dynamic dairy environment.
Schuil & Associates, Inc. has seen opportunity through these difficult times. “Never before have we been able to offer such quality dairies for sale to our clients at near favorable prices” says Schuil, “Some of those who have survived the storm are taking advantage of these opportunities by purchasing from the large inventory of dairies for sale.
In the last three years Schuil & Associates has brokered dairy properties for sale that total in excess of $72 million; this clearly shows that agricultural properties including dairy properties remain a core investment for those in the dairy industry. Additionally national banking institutions such as Federal Land Bank and Farm Credit have trusted Schuil & Associates to assist in marketing and selling dairy facilities. Schuil states, “Our sales clearly show that the industry is rebounding.”