Quote:
Originally Posted by Azure
A few years ago, a farmer I knew told me that with his 200 cows under the quota system, he was making around $400,000 CLEAN per year after everything, including labor had been paid for. That is a ridiculous amount of money for such an operation. But, when you consider that the average price of quota is $25,000/cow, which means 200 cows would cost you a nice $5 million, which even if you make $400,000 clean per year, would still take you around 13 years to pay off. Of course nobody would use the full $400,000 they make every year to pay off the quota, as chances are they obtained a bank loan to fund the purchase, it would be more like 20-30 years. Which, from knowing people in the industry, is how long it takes to pay off dairy quota, once you buy it....
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The problem is that guy was likely given the quota for free. He very likely didnt pay 25K/cow.
Yes, will there be some pain for the few people who have purchased quota sure - but thems the breaks when a government breaks up an extremely corrupt and mafia type industry.