Mmmmmmmmmmmmmmm...when the government says "no, not really, it was restructured"...a quote, taken from the link you provided, should make any taxpayer realize they are being duped by a redirect ploy. It is like saying my first wife did not have an affair, she just restructured her wedding vows. Jeeshhhhhh... You live in New York so you have no idea what happened here. Central Maine Power which owned many power generation sites; from dams to boilers started selling them out of fear of losing money. Of them Maine Yankee, a nuclear power plant was actually shut down from that fear, and that produced electricity really cheap. So did other nuclear power plants in New England that were shuddered at the same time. This drove up the cost of electricity and is directly related to the deregulation of electricity in Maine....whoops...."restructured electricity" I mean. A lot of the paper mills here, especially the ones who used softwood which produces brown paper primarily, had weak markets (newspaper paper) and could not compete in an area with high energy costs.
The thing of this is, this issue is on the hearts and minds of every landowner in the state. Wood has taken a 1/3 plummet in price, but as we all know, that financial loss is only taken when a landowner cuts the wood at that lower price, if the leave it and the price rebounds, they did not lose a thing. This is the 2 million dollar question... What does a Maine Landowner like me do? Hope it is just a downturn in the forest industry, wait it out, and then cut their wood when forestry industry is better? Or do they cut what they can glad to get 1/3 less now, but that is a lot better than nothing if no wood is moving at all? Some say the forest products industry in Maine will never collapse completely. Myself, I am not so sure. I saw Maine's shoe shops die off, the woolen industry, and the tanneries; I actually feel kind of stupid for never thinking the same fate would bestow the forest products industry. If the paper mills themselves are any indication, it is a sad state of affairs. They are not shutting down these mills, they are tearing them down. With the environmentalists of this states, there is no way another will be built in their place.
There is a lot to the story of the "why" things went the way they have. You have addressed in basic and real terms. Very insightful. I hope you survive the current slump. I wonder if the misfortune of the hurricane dame will have an impact on the demand for wood products. That may be temporary, but it is a market.
Besides the wood on yout land what else supplies income? We all know that firewood/ pulp wood in any shape or form is not really a profitable enterprises for most of us.
That is a very interesting question and why this thread is such a personal struggle for me. I am retired so logging of my property is my primary income. I also have a sheep farm. My goal is to convert this almost worthless woodlot (it comprises 3/4 of my land base) into fields so I can raise more sheep. I am not the only farming doing so, in fact most farmers I know of around here are doing this. It only makes sense, as tillable land is worth more per acre then even house lots. That however has high costs to make the conversion; getting money for the wood off-sets that cost. BUT that conversion can only really take place IF there is a market for the wood. Pellets and Firewood just are not going to cut it. Paper mills here consume some 2500 cords of wood per day...that is a huge demand and an ideal market. Rotted wood...yeah they take it. Big wood...yeah they take that too. Muddy wood...does not matter to them... I talked to a guy in January and he said the Fed's were going to do something "big", and they did. They ended up giving a paper mill $200 million for a new paper machine. The problem is, that paper machine is going to take hardwood...I think. They make this new paper for the medical industry that has antibiotic properties...perfect for band aids and the like...no Neosporin needed. Not a bad idea. But the forester for that paper mill told me their digester could not process enough hardwood for another paper machine (they have 6 going now), then added later that if they disclose too much information, it could ruin markets. I got the impression for everything said, they might consume some softwood. Since 28% of my wood lot consists of hemlock...that would work for me! Still forest costs me $28 a year in property taxes, and yet I only make $25 a year per acre in forest growth...it takes 35 years to grow a tree in size enough for market. In retrospect I can put 10 sheep per acre on green grass, and they go from birth to sale in 5 months time. You do the math. I normally would not be in a hurry for any of this, but if the forest market is so bad now...and it is subsidized...what will it be like in 2 years time when the subsidy runs out? Can us landowners even cut wood, much less farmers who want to clear tons of wood to make room for livestock? Again that wood helps pay for the diesel fuel and equipment to rid the fields of stumps, grade it, sow it down, install drain tile, etc.
I do not have any answers. Course if you are following the herd as it were what happens to market pricing when its flooded. I don't know a whole lot about sheep very basic ( dairy family) - Never been a fan of mutton. But the wool works for me and the lanolin squeezed out of same during processing has its uses. Maybe instead of clearing and de- stumping the whole nine yards a bit of diversification might be in order. perhaps something along the lines of mast crop trees or fruit trees ya they take bit to get going, but get rich quick stuff doesn't seem to pan out well in my book- maybe it just me. Ain't sayin nay to the sheep just don't like the idea of only one thing in the basket. An acquaintance did the ginseng thing a number of years back when it was being hyped up- market went south dang near lost his shirt.
don't know much about sheep.. friend has 12 can't even give wool away.. sister and husband are doing a nice business selling all natural beef ... here with immigration the goat meat market is booming
There are a lot of parallels between forestry and farming. With sheep, very few in New England approach it with enough scale to stand a chance of generating real profit. The few serious ones aim to get more than one lambing per ewe per year on average - works out to something like 3 lambing in 2 years. But that takes more intensive management and facilities. Lots of good reading from Cornell on this, and UMaine could point you to a good farm or two to visit. I was just talking with a coworker today about the typical lifespan of a sheep farm here being 4 to 5 years (I was advising her to look for secondhand equipment for a backyard hobby flock, as there is a continual rotation of people getting in and then back out ). Markets have been a continual challenge; scale of operation helps, but brings its own challenges (picture 100 lambs ready to o, and your buyer on the phone saying he thinks he might, maybe, be able to take them in a couple of weeks. Coordinating the supply of finished lambs with the demand is an ongoing juggling act. (Maybe think of pine saw logs on the landing in August - your short term options are constrained)
We are a 9th generational sheep farm, and definitively made it past the 3 year average, but I can see why most farms do last that long; people just do not realize how much work farming is. I also do not think many can handle the mortality. Ours was quite high here for awhile, but slowly it has come down to 5%; the average sheep farm is over 20%. Still I grew upon a farm but did not go full-time farming until last year when I retired. I do not have the answer to all this either, but do know debt has a lot to do with it. I have always stayed away from that, building my home as I went, paying everything with cash, and buying land only when I got a good deal on it and it had resources we could use. I still got some acres that are not fully utilized and I know I have to get a handle on that soon. They just are not really growing forest products well, but not into fields either, so they really are not doing me any good. No sense paying taxes on land that cannot be used for something. I have been working with the small business administration and have a pretty good farm plan. We are in hopes to move a few buildings this fall and get us in a better position for more sheep next year. Moving already built buildings is far cheaper than building new ones, even using your own lumber. We figure the break even point on sheep is 265, but that is based on this farm and our expenses. It is also based on a worst case scenario; scaled up expenses and wholesale sale prices. As everyone on here knows, I am cheap and we provide our own feed; winter and summer so that does help keep the cost or raising sheep low. Our goal is 300 sheep, then increase to 500, then 750. A lot of that is using the wood lot to cut the lumber for the new barns, get equipment, and the most expensive part...buy more sheep. This is why the Regional Forester stopped by last week. On the 28th I have a county wide forestry field visit because we are part of the National Tree Farm System, and that was what the forester wanted me to talk about; all the reasons why I have decided to clear parts of my farm. I have highlighted many of those reasons here. Are they sound decisions? I don't know, no one can predict the future, but at least I am putting a lot of thought into it before I do, and then doing something. That is what these people really want to see...someone doing something with their wood lot. But it also begs the question: what should they do with their wood lots?
LodgedTree before you commit 100% to sheep have you researched other markets.. Sister and BIL are doing a good business selling healthier all natural beef.. in last 5 years built and paid off slaughter house because it gave them control of middle process in food to table situation.. dairy farming is always at whim of milk prices where larger Midwest farms can achieve economies of scale where meat farming does not.. I personally only have 22 acres.. but it is almost profitable for me to raise and sell goat meat as retail prices of it are pushing 15 plus a pound.. the middle eastern need it for religous and traditional meals and it has been a neglected market in the USA.. Goats I would think would be excellent idea on less desirable land as they eat anything while turning it into profitable land.. just something to research..
To answer your questions...yes. All teasing aside, yes we have researched other options, and yes we are committed to sheep. It is a very long story, and I can understand why people at not understand, but for Katie and I, we know sheep is at least part of the answer. I say "part" because they say a farm should have three commodities that it sells that way if one goes to pieces, the other markets can keep it afloat. Right now we only have two: sheep and logging. I am not sure what that other one should be, but I think they are right, we need something else. But sheep will always be part of this farm. That is because in 2011 I had a 84 sheep (breeding stock ewes) and put them on a really good pasture. I had let them lag behind a bit because I was waiting for my sheep shearer to get the wool off and in doing so, they really clobbered the grass in the field. When they went to the new field they got bloat. I woke up the next morning to 20 dead sheep. I was devastated. It was all my fault and no excuse for it, but dead is dead, and done is done...kind of like running over a chainsaw with a skidder. I was also going through a VERY nasty divorce, and was just frustrated with everything. I was just going to throw in the towel and to say to heck with sheep. But right then God spoke to me and said simply, "stick with sheep." No big clap of lightning, no thunder, just a small voice... NOW I have no claim to having some special relationship with God, I am just a sinner saved by grace, but I know sheep is what he wants me to do. That does not mean others have to raise sheep, but for Katie and I sheep is to be the mainstay of this farm. Now that was years ago, and we have never really hit big numbers with sheep, but we have faith and in steps can see good things happening. I retired at 42. I am clearing land. I am getting buildings moved. It has taken time, but always moving forward, and doing so debt free so that we might bein a good spot. Like I said, I understand if people think I am crazy, but so far we have no regrets.
no completely understand.. just giving other option I have personally seen success with.. interested in what 3rd crop will be?. not sure in current analysis if timber even counts as a crop at this point in time...
I am not sure. A couple ideas are fabricating custom farm implements. I have made a bunch this last year and was surprised when they actually worked. The grader blade and upside down woodsplitter being just two of them this yer. I am a retired welder/machinist, and while it was in the Railroad/Maritime industry, still serves me well. Another idea is getting a track machine. Around here the only ones that have them are the dealerships and they charge plenty for them to work on them. With so many bulldozers and excavators around (and to some degree feller-bunchers) a track shop might work. I would rather work on my bulldozer then drive it, but I really love working on the undercarriage. I am not so keen on tearing into engines and final drives. There is also home rental. I own a house in New Hampshire (near the VT border) and that is rented out, but another in Maine is vacant. I should really rent that out too which I guess would qualify as a 3rd income stream. I would say Katie could get a job off-farm, but honestly we work so good together that we really need to work as a team. Don't let looks fool you, she is a very hard worker.
Thanks - with beef cattle here in the Northeast the herd size is generally given as total head, while most other places in the country do it as breeeding age females. I find the breeding age female more descriptive, but realize most people here I'm talking with about cattle are using the other convention. I haven't been to any flocks the size you are contemplating here in the northeast, but have been to several in other parts of the world.
I have as well, a vacation in Ireland being the most notable. I really brought nothing back, only because there they can pasture year around because their weather is more like Florida then Maine, and because they are so highly subsidized. It still was good to see how they do things over there, and make farmer connections across the pond.
