Latimer, Iowa (north central) | Agree with you. I know sites are selling for more than that but I wouldn’t want to be the one paying for it. It takes a pretty well constructed and maintained barn to be worth much after 30 years and O.P. Is talking about a 23 year old site. We have a barn built in 1995 that is in very nice shape but has had a new roof(twice), gusset plates, and new insulation. I set every beam and slat in all our sites to make sure they are squarely placed. Have seen beam pockets and posts crumble with poor results. Hog barns have been very good to us but nothing lasts forever.
Some math:
$37 a pig space times 3000 hd times 23 years is 2.55 M. The barns have made their return. If they still need a positive value it throws up a flag. If they get valued at something like 300,000 with a feasible future life of 7 years there is no real asset there and still have the demo cost. Not trying to be negative just reality of older livestock barns. A lot easier to tell a banker that when the “integrator wants us to remodel” “we are sitting empty till find a different one”, on an asset worth $0 then sitting on a empty asset worth “300k”. Start putting unrealistic values on barns and one is setting up to get cut off by bank if lose a contract.
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Hot barn site value for balance sheet
