The largest growth sector for meat in the USA has been poultry. This has all been grown by growers. As Americans have moved from beef and pork to poultry there has been a huge demand for poultry per capita. Growers and the poultry industry have been developing this industry since after WWII. It takes about 15 years to pay off a poultry house, after which time it should produce between $50k to $75k per house per year, for part time work for a farming family. Prior to paying these assets off they too, like small apartment buildings, produce modest income, $15k to $25k per house, per year. So farming families with idle land or land not suited to crops, assuming such land is suitable for growing poultry, can use that land to create a tremendous family or retirement asset as source of income not otherwise available from such a small amount of land. So, a three house investment, after being paid off, can yield $150k to $225k free cash flow per year. The situation with Pilgrim's Pride is unique in that the poultry industry has been expanding year after year even thought from time to time there are issues with companies. The national financial crisis affected Pilgrim's Pride, and one can review their public financial statements. Many of us have been adversely affected by today's impacts in the financial markets. The USA's population has passed 300,000,000 and will be over 400,000,000 in less than 34 years according to the census. Thus, more and more poultry will be needed despite this brief issue with Pilgrim's Pride, it is inevitable. Also, poultry converts grain to pounds of meat far more efficiently than beef or pork, making poultry more environmentally friendly. The poultry houses in the article will certainly be needed in the not too distant future. One cannot perdict exactly when but it is inevitable that as the US population increases so will the demand for poultry, dramatically. Many, many farmers have stabilized their families, their income, increased their options and kept alive their farming lifestyle because of the income of poultry houses. The article is akin to asking someone who has been evicted, why own a house or bother trying. Yet, we either do or strive to own a houses. If all the population knew of the potential income from poultry houses, many more individuals and many other investment sources would be interested in them. Individuals like those discussed can moderate the risk through any of the techniques of investment. If a person can't afford to buy a small apartment house all alone, then he or she can put together a small group to do so; ditto so could a land owner. The fact that an individual decided to take on all the potential return in exchange for all the potential risk is just a reflection of the particular decision of those individuals, and is not necessarily the outcome or structure of other transactions.
1 Comments:
The largest growth sector for meat in the USA has been poultry. This has all been grown by growers. As Americans have moved from beef and pork to poultry there has been a huge demand for poultry per capita. Growers and the poultry industry have been developing this industry since after WWII. It takes about 15 years to pay off a poultry house, after which time it should produce between $50k to $75k per house per year, for part time work for a farming family. Prior to paying these assets off they too, like small apartment buildings, produce modest income, $15k to $25k per house, per year. So farming families with idle land or land not suited to crops, assuming such land is suitable for growing poultry, can use that land to create a tremendous family or retirement asset as source of income not otherwise available from such a small amount of land. So, a three house investment, after being paid off, can yield $150k to $225k free cash flow per year. The situation with Pilgrim's Pride is unique in that the poultry industry has been expanding year after year even thought from time to time there are issues with companies. The national financial crisis affected Pilgrim's Pride, and one can review their public financial statements. Many of us have been adversely affected by today's impacts in the financial markets. The USA's population has passed 300,000,000 and will be over 400,000,000 in less than 34 years according to the census. Thus, more and more poultry will be needed despite this brief issue with Pilgrim's Pride, it is inevitable. Also, poultry converts grain to pounds of meat far more efficiently than beef or pork, making poultry more environmentally friendly. The poultry houses in the article will certainly be needed in the not too distant future. One cannot perdict exactly when but it is inevitable that as the US population increases so will the demand for poultry, dramatically. Many, many farmers have stabilized their families, their income, increased their options and kept alive their farming lifestyle because of the income of poultry houses. The article is akin to asking someone who has been evicted, why own a house or bother trying. Yet, we either do or strive to own a houses. If all the population knew of the potential income from poultry houses, many more individuals and many other investment sources would be interested in them. Individuals like those discussed can moderate the risk through any of the techniques of investment. If a person can't afford to buy a small apartment house all alone, then he or she can put together a small group to do so; ditto so could a land owner. The fact that an individual decided to take on all the potential return in exchange for all the potential risk is just a reflection of the particular decision of those individuals, and is not necessarily the outcome or structure of other transactions.
Post a Comment
<< Home