Putting the Pieces Together

Wednesday, April 30, 2008
Contributed by: Alan Rhodes

Congratulations to several Underwood clients and friends who are making progress toward pushing dirt or completing a new facility.

The vision, attention to detail and work ethic shown by dairy farmers continues to please, surprise and amaze me. As I watch the new facility completions, I question how one client's choice to build a 100 cow rotary will compare to another client's choice to build a twin 50 cow rotary parlors. My guess is that each decision was correct and each farmer will continue the successes they've enjoyed as they respectively reach first milk over the next seventy-five or so days. (And there's the farmer who has decided on a twin double 50 and moving south for a higher milk price and lower feed costs.)

If farmers are completing the construction of a 100 cow rotary or twin fifties, they've proven to the financial community that they are able to manage significant operations in a new country or in a new part of the country.

Equally interesting are the groups that are planning to push dirt. Underwood is helping two families as they hope to come from Denmark and push dirt. These families face significant questions about proving up operating history and showing their ability to manage. The biggest hurdle for a family moving from Denmark is available capital and whether the available capital will support their US hopes and dreams.

Financing issues for a relocating foreign family are ticklish (and I appreciate the lender's risk). We'll watch the two families, one with an approved visa and one ready to apply under EB5. We'll compare their experiences with that of the family with four or five years experience that plans to move to the Texas panhandle and push dirt on a new facility. No doubt the four to five years of operating history and references will simplify and expedite the process.

We continue to look for the right opportunities for Underwood's dairy friends and clients; perhaps they will be your next-farm-over neighbor. If you have a permitted farm or if you're thinking of the best way to develop your opportunities, send me a map of your farm or call. Underwood has now had or is having an opportunity to meet with dairy farmers who have settled in areas from Lovington to San Angelo to Hico to Sulfur Springs to Dalhart to Cimarron to Tribune to Syracuse to Hereford to Clovis to Hart, to name a few.

There's not much dairy law or agricultural law in this posting. Recently it's been all about controlling feed costs and completing negotiations.

If you have a development opportunity, let's talk.

This column is published for informational purposes only. It should not be construed as legal advice and is not intended to create an attorney client relationship. The views expressed are those of the author and do not necessarily reflect the views of the author's law firm or its individual partners.