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DESCRIPTION:
SINCE
1961, MILL CREEK RANCH has been a fixture in the Lander
area. Utilizing a
combination of deeded land and low-cost, 5 year, renewable
leases, the Ranch has
sustained a year-round, irrigated cow-calf operation. Pastures
are well-sodded with highmountain
meadow
type grasses and are either grazed in rotation or hayed. Fences
are
permanent and are either 40 or 80 acres in size.
ACREAGE
SUMMARY:
Total
Irrigated
Deeded
Lands 200.00 acres 179. acres
5 YR
Renewable Lease 678.22 acres 489. acres
TOTAL
878.22 acres 668. acres
IMPROVEMENTS:
287 HQ -
A clean, modest trailer home with permanent addition and a
metal- sided shop
with a
concrete floor.
There
are adequate facilities (barns, corrals, etc) to accommodate
calving, shipping etc.
located
on the lease ground.
IRRIGATION:
ALL
WATER RIGHTS on the ranch are
1868 WALTON TERRITORIAL WATER
RIGHTS.
These are the earliest water rights in Wyoming. Water costs
around $16/per
irrigated acre and is administered via a ditch rider through the
BIA.
WATER:
STOCK
WATER is through live springs and Mill Creek which flows
year-round through
much of
the property. Domestic water is hauled to a cistern located on
the farmstead
(typical
for this area). There is a municipal water supply available
within ˝ a mile of the
property
and can be connected for a nominal fee.
LEASES:
THE
LEASES connected with the Ranch are a series of private and
“heir ship” leases
located
within the Wind River Reservation. Each lease is for a five year
period and is
renewable through the BIA real estate office.. Most of the
leases have been with
Mill
Creek
Ranch through an “S
Corp” Hornecker Lvstk Inc. for decades. Average cost is
$17.00/acre and all are contiguous. These leases transfer with
the “S Corp” at the sale of
the
property.
LOCATION:
Mill
Creek Ranch. is located on Hwy 287, Seven miles north
of Lander, WY.
CARRYING
CAPACITY:
CURRENT
OPERATOR conservatively
estimates carrying capacity, in normal years, at
225 cows
year-round.
NOTE:
Carrying capacity can vary due to weather conditions and
management practices.
Interested parties should conduct their own analysis.
HAY
PRODUCTION:
HIGH-QUALITY grass hay is produced on various parcels to
accommodate the cow
herd’s
winter feed requirements. While the current focus is on
irrigated pasture, there is
the
option of producing high-mountain grass hay on much of the Ranch
should that be
desired.
SUB
CHAPTER S CORPORATION:
In
order to facilitate an efficient transfer, it is suggested that
the leases of HORNECKER
LIVESTOCK INC be
transferred in their current form as a sub- chapter S corp.
There is
no tax
liability to owning a Sub S Corp. It is roughly equivalent to an
LLC.
MINERALS:
SELLER
will transfer all minerals held by the Corp to the Buyer at
time of closing. Seller
feels as
though it holds the majority of those rights.
OTHER:
HORNECKER LIVESTOCK S CORPORATION
BRAND:
THE historic Bar A H brand will transfer to the new owner.
BONDS :
BIA lessees are required to post a bond as insurance in case
of default.
Hornecker Livestock Inc will transfer any required bonds, held
at a local bank, to the new
owner.
THE
BUSINESS
MILL
CREEK RANCH MARKETS on average a 95% calf crop of 500# calves
with very
little
labor in what is virtually a climate-controlled environment.
Cattle are rotated through
a series
of 40-80 acre flood irrigated pasture with Territorial water
rights. The close
proximity of the cattle make intensive management easy and close
at hand.
TAXES &
ASSESSMENTS:
Real
Estate $1,700.
Water
Deeded
$2,000.
Lease
$10,000.
Lease
Fees $17,450.
TOTAL
$31,150.
OR
225 COWS
X 12 MONTHS = 2,700 AUMS
$31,150/2,700 AUMS = $11.50/cow/month (for irrigated pasture!)
PRICE:
MILL
CREEK RANCH, including “S Corp” and all real property, is
offered for $636,000
(Six
hundred thirty six thousand dollars) cash.
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