Latimer, Iowa (north central) | We depreciated ours 5% a year from date of construction. So have our 1997 site at 0. Our 2004 site is at 5% of construction cost, 2006 site at 15%, 2007 site at 20%. If spend a big amount on improvements I will add that to construction cost and multiply by the current % factor for the site.
Been feeding pigs long enough to know the contract for production is only a price of paper that makes you feel good. There are ways for integrators to get out if they feel like it and then your return could be zero until find another partner or spend a pile remodeling. Would rather be conservative if all goes south.
Edit to add: In a few years thinking I should start building up a negative value to pay for demolition. The first sites around here built in early 90s are starting to get torn down and we are burying some silos and cattle lots right now. It’s not cheap.
Edited by Green Acres Guy 3/13/2024 11:20
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Hot barn site value for balance sheet
