“It’s going to be tough for you to justify a lot of ag activities based on the return, if you look at what the property is worth because the return for say ranching activities is probably something in the neighborhood of an average of 1% of invested capital if you look at the value of that real estate.”
What’s this mean to production agriculture?
“Agriculture’s gonna look different in the future. I don’t think anyone would suggest agriculture is going to go away.”
With homes being built all around them, Glenn Hegar’s family considered the turf grass business.
“If you think about it, also every other farmer is thinking about the same thing too. But then I can’t take the machines I drive out and harvest my crop with today, I can’t take a combine and harvest grass. I got to have a whole different piece of equipment, and by the time you invest in that equipment you’re talking about $250,000.”
Different crops bring their own problems with them.
“We used to rotate soybeans with our rice, but with sandy soil the disease stays residual in, from the soybeans, stays residual in the soil. Then you plant your rice and guess what? That disease carries over into the rice next year.”
So for those who suggest just growing something else?
“You just can’t interchange everything. It’s no different that your car. If you drive a pickup truck today, you just can’t take the wheel off your car and put it on your truck. They’re two different sizes.”
Hegar is going to farm his family’s land as long as he can, but he’s a realist.
“That’s part of my heritage and that’s part of what I’d like to continue to do everyday, but sometimes, what we want and what we get may not be the same thing.”
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