The power of our business proposal lies in our 200-acre model based on the intensive management of our grasslands. The model can scale up or down. When scaled down it provides a good living for a small farm down to about 50 acres. When scaled up the only limiting factor is the market share that can be filled by our products.
The 200-acre model is a layered approach to growing animals. In a year the same acres will support 500 cows, 150,000 meat chickens, 3750 egg laying chickens that produce 78,000 dozen eggs, 300 pigs, two-acres of mushroom cultivation, 800 lbs. of honey as well as hay for winter-feeding.
This is a very intensive management of resources and the key to our high profit potential.
The initial development is an accelerated program with the intention of jump starting the farm. The irrigation, over seeding with annual plants for quick forage and use of feeder steers all contribute to a rapid conversion from cattle monoculture farming to our highly profitable regenerative agriculture model. This acceleration allows us to conclude borrowing capital in month 18 and begin making payments equal to the interest in month 19.
Land that is developed in expansion of the farm will proceed at a more leisurely pace. In order to accommodate the cattle herd’s growth, the best acres of each purchase will also be irrigated and over seeded with annuals in advance of the remaining acres. Our goal is the best use of each acre.
So, what is it going to take to create this? The full-scale plan has a capital request of $100 million.
The main purchases include:
1) $52.8 million is allocated to purchase 14,850 acres including four fully outfitted cattle ranches. Nearly 6,000 acres are within a 6-mile radius of Yatesville Georgia.
2) $1.75 million allows us to build two 200KWH Syngas Power Plants fueled with woodchips. One plant powers our irrigation system that will put 1,600 acres under guaranteed water in the Yatesville holdings. The second plant will power our three animal and egg processing centers which are budgeted at $3.25 million to construct and outfit. We also purchase diesel powered back-up generators for each facility.
3) $4.9 million for the irrigation system on the 1,600-startup acres in the Yatesville operation, 1,200 acres in the Meriwether County operation and 1,300 acres for the Coweta County operation. The Meriwether pumping systems will be powered by installing a solar power station in year four. At the onset we plan on bottling Syngas (carbon monoxide) and trucking it to the modified CAT diesel generators which have been modified by Caterpillar to operate using Syngas instead of diesel.
4) $5.7 million will purchase our foundation herd and our first round of feeder steers. Total startup herd is 7,000 animals. We will hire Mr. Bill Wellington as our Herd Manager. Bill grew-up ranching in the Yampa Valley of Colorado and has managed large-scale cattle operations his entire life. Bill will have the power to select his top managers who are associates that he has known for decades. Yes, a crew of real western cowboys!
5) $2.3 million is dedicated to our perennial seed mixture and spreads three tons of wood-ash per acre sourced from a local 58-Megawatt wood-fired power plant. This raises the soil PH and gives our new seed a ready supply of minerals.
A detailed accounting is provided under the Establishment Tab on our Budget Spreadsheet. As of this date we expect to use $93.7 million of the $100 million we are seeking to raise.
Our 15 Year Budget projects that we will have a 2 to 1 ratio of gross income over direct operating expenses by month 18. Our first year’s gross income projection is: $11.6 million, with an expected loss of $87.8 million as supplied by the loan. Year two we expect to gross $58.6 million, and net $0.8 million during which time the company becomes self-supporting and begins to return capital. Year three goes to $96.1 million with an expected net of 9.2 million. The company continues to maintain a 2 to 1 ratio of income to operating expenses for the 15 years as budgeted. Our nets continue to stay low in the early years due to reinvestment into farm expansion.
Year 15 is projected to have gross income of $47.7 Billion and net $24.5 Billion and have purchased and developed 4.9 million acres of land.