TOM HAREN CEO AGPROFESSIONALS Thomas M. Haren, CEO July 18, 2019 - - PowerPoint PPT Presentation

TOM HAREN

CEO AGPROFESSIONALS

PANELISTS

Thomas M. Haren, CEO

July 18, 2019

Who We Are…

• Agricultural development company
• Specializing in animal agriculture
• Providing:
• Planning
• Engineering
• Real estate & site selection services
• Consulting for over 20 years

Current State of the Industry

• Ag Land Conversion Continues
• Consolidation
• Age
• Costs

Changes in Land in Farms (Acres)

Rank State

Land in Farms 2012 Land in Farms 2017 Net Change 2012 to 2017 Percent Change 2012 to 2017 1 Nevada 5,913,761 6,128,153 214,392 3.63% 2 Georgia 9,620,836 9,953,730 332,894 3.46% 3 Delaware 508,652 525,324 16,672 3.28% 4 New Jersey 715,057 734,084 19,027 2.66% 5 Florida 9,548,342 9,731,731 183,389 1.92% 6 Alaska 833,861 849,753 15,892 1.91% 7 Indiana 14,720,396 14,969,996 249,600 1.70% 8 West Virginia 3,606,674 3,662,178 55,504 1.54% 9 Louisiana 7,900,864 7,997,511 96,647 1.22% 10 Arkansas 13,810,786 13,888,929 78,143 0.57% 11 Hawaii 1,129,317 1,135,352 6,035 0.53% 12 Illinois 26,937,721 27,006,288 68,567 0.25% 13 North Dakota 39,262,613 39,341,591 78,978 0.20% 14 North Carolina 8,414,756 8,430,522 15,766 0.19% 15 Tennessee 10,867,812 10,874,238 6,426 0.06% 16 Ohio 13,960,604 13,965,295 4,691 0.03% 17 South Dakota 43,257,079 43,243,742

• 13,337
• 0.03%

18 Iowa 30,622,731 30,563,878

• 58,853
• 0.19%

19 Colorado 31,886,676 31,820,957

• 65,719
• 0.21%

20 Washington 14,748,107 14,679,857

• 68,250
• 0.46%

21 Arizona 26,249,195 26,125,819

• 123,376
• 0.47%

22 Idaho 11,760,109 11,691,912

• 68,197
• 0.58%

23 Oklahoma 34,356,110 34,156,290

• 199,820
• 0.58%

24 Kentucky 13,049,347 12,961,784

• 87,563
• 0.67%

25 Nebraska 45,331,783 44,986,821

• 344,962
• 0.76%

Ag Land Conversion

Consolidation

Consolidation

Dairy Farms 1000

Average Age Increase

59 2017

Water – Can We Afford It? $ Share Price

• CBT

$ 50,000

• WSSC

$1,250,000 $ CU / AF $70,000 $25,000

More Pressure... Source

• Larimer & Weld
• Windsor Res.
• FRICO Barr
• FRICO Milton

Price $ 50,000 $260,000 $ 35,000 $ 30,000

• New Dairies - $2-3 million water investment
• $15,000 - $30,000 water bills

Percent of US Population in Ag

1900-2017

1900 2017

Colorado Growth Projections

Reallocation - How Much Is Too Much?

How much transfer of water rights from agriculture to municipal uses will the region accept?

• Influence
• Resources
• $$$
• Votes
• All of it, if necessary?

Options?

• Buy-n-Dry
• Efficiency
• Recycling
• Storage
• NISP
• Underground
• Interruptible Supply

Contracts

• Water Banks
• Alternative Transfer

Methods (ATM’s)

• Efficiency Credit

Trading

A r e t h e s e t h e

• n

l y

• p

t i

• n

s ? H

• w

c r e a t i v e c a n w e b e ?

Source: Capper et al. (2009) “The environmental impact of dairy production: 1944 compared with 2007“ J. Anim. Sci.

21,000 18,000 15,000 12,000 9,000 6,000 3,000 1944 1951 1958 1965 1972 1979 1986 1993 2000 2007

Environmental Impact Reduction Due To Improved Productivity

1944 2007

25.6m cows 117 lb 9.2m cows 186 lb

U.S. produces 59% more milk using 64% fewer cows

How Creative Can We Be…?

Wastewater Treatment

• $2 - $3m for water
• $4 - $5m for water treatment
• Lagoons will go away
• Drinking or discharge quality

Equipment Technology

DAF

Digesters

Energy Control

• Control energy costs
• Self – sufficiency
• Environmental PR
• Public perception
• Revenue stream

❖ Increased egg production versus standard industry light ❖ 20% decrease in energy costs

Avg/Day

Feeding Technology

Fodder System

Where’s The Water?

It Can Be Done…

Take Aways

• Efficiency
• Technology
• Cooperation
• How creative can we be…?
• Agriculture does not have to be the ONLY

answer

Thank you!

Thomas M. Haren, CEO

3050 67th Avenue Greeley, CO 80634 (970) 535-9318 www.agpros.com