Could this happen here? Has it?

[charliep]

Just to make sure everyone read the article. 1 hectare equals 2.47 acres. Economies of scale they highlight are for farms 12,500 to 20,000 acres. They talk about a machinery investment of USD $400 per acre. No owned land/all rented. The question in the article is how the banks built up that size of debt.

Quote from the article.

"In agriculture, the economies of scale for large machinery are about 5,000-8,000 hectares. Beyond that size, you need to buy another 500-horsepower tractor and additional machinery. A top manager and agronomist can probably oversee 10,000-20,000 hectares, depending on how spread out the fields are. However, for more 10,000 hectares or so, other costs of supervising staff and overhead increase. More staff equals more theft and more backhanders paid for large orders by salesmen from input distributors.

This is precisely why all over the world the sustainable farm model that has developed over many years has been private family farming or peasant farming. Farms are getting bigger in the U.S. but the average size is 95 hectares and over 66 percent of farms are below 2,000 hectares. The farms in Europe are even smaller."

End quote.

[Horse]

charlep Thats exactly what I said about big oil more theft,payoffs management(consultants). Too many desks and no one realy minding the store, take all you can get while you can.
Sask3 You have to compete with investors that may or may not pay off thier bills but they contribute to the surpluses and cost of production. I was In the cattle buis and I had to compete with all the welfare cowboys that the gov seen fit to pay them to graze thier cows on crown land , well I finaly said ****em because when I took my calves to the sale those with welfare cows were at least $200 ahead of me pluss mabey a whole lot more if they have oil revennue (60%) have it.Anyway I can survive as my land is paid but it sure pisses one off to try and compete.
Does anyone know if the foothills of alta waldron grazing ass is on deeded or crown land that the nature conservitory of canada just paid 37mil or app $1200/acre but still have all the rights of ownership go figure. Sell it but use it in perpetuity.

[charliep]

Perhaps my point was you can't compare what is going on in the Ukraine to here. Labor is cheap/available/used in mid to large farms. Having an agronomist on staff is normal. As with Canada 50 years ago, the Ukraine is going through a process of increasing farm sizes. The start is less 20 to 30 acre subsistance farms. Just like here, there are going through a process of determining what size a viable farm business is including its financing.

The business commented the article is about is 150,000 hectares or 375,000 acres.