We were just informed that the farmland has been sold.
We are still seeking accredited investors to implement our business plan.
Please PM if you are interested in knowing more.
Locking this topic since it is no longer needed.
Topic: Columbia Basin Mining - Land offer for Bitcoin Mining (Read 1119 times)
It still leaves things murky as different stories were told. I keep asking as I seem to think there is something wrong, and I did find one for sure.
We never intended any confusion, so we need to work on our wording and clarity in the future.Are you willing to change original post and company policy where partner under no circumstances be farming it? As if hes your expert and he also might be farming it is very big conflict.
Updated the original posting highlighted in blue.Can you make it where it state's in documentation something like "No one involved with CBM will be allowed to farm the land due to conflict of interest. If farmer who is going to farm is known by CBM management or team member the relationship must be shared to all investors, and give investors time to look into it before any deal is signed"
That would take away what I see as such a conflict. And even knowing the person is shared with details to investors.
We are willing to add provisions to investors document (term sheet) to secure a partnership. That would take away what I see as such a conflict. And even knowing the person is shared with details to investors.
It still leaves things murky as different stories were told. I keep asking as I seem to think there is something wrong, and I did find one for sure.
Are you willing to change original post and company policy where partner under no circumstances be farming it? As if hes your expert and he also might be farming it is very big conflict.
Can you make it where it state's in documentation something like "No one involved with CBM will be allowed to farm the land due to conflict of interest. If farmer who is going to farm is known by CBM management or team member the relationship must be shared to all investors, and give investors time to look into it before any deal is signed"
That would take away what I see as such a conflict. And even knowing the person is shared with details to investors.
Are you willing to change original post and company policy where partner under no circumstances be farming it? As if hes your expert and he also might be farming it is very big conflict.
Can you make it where it state's in documentation something like "No one involved with CBM will be allowed to farm the land due to conflict of interest. If farmer who is going to farm is known by CBM management or team member the relationship must be shared to all investors, and give investors time to look into it before any deal is signed"
That would take away what I see as such a conflict. And even knowing the person is shared with details to investors.
Thank you for answering some of it. I honestly still have hard time believing co-founder is a farmer... or he would do it most likely. I think we are still missing something here.
I honestly think it is friend or family since you know this 40k your so set on. I don't think there is a chance you had farmers come out and look and bid on using it when you are far from owning it. I also think not wanting sharecropping as owner is crazy
I honestly think it is friend or family since you know this 40k your so set on. I don't think there is a chance you had farmers come out and look and bid on using it when you are far from owning it. I also think not wanting sharecropping as owner is crazy
The original posting stated we have an opportunity to secure 80 acres of farmland, that we could use the majority of its available power for bitcoin mining. Never did we state we owned the land, as we are seeking accredited investors to help procure the land.
Also we never stated we had bids on leasing the land. We were hypothesizing on how we could benefit from land ownership, and giving examples. The focus on sharecropping was from your end, and as stated numerous times this practice is not done in our area.
UPDATE:
*EDIT I Knew it sounded odd read above in previous comments:
So one of the managing partners is willing to farm this land.... one minute hes managing partner. Other minute it's "Is the renter family relation to someone in CBM? No, and it would be to the highest bidder." Your managing partner is giving you info on what it should be.... when it most likely would be him farming it. No wonder such a sweet deal on renting, and not sharcropping. You have someone with a conflict of interest.
I have shown story does not add up. 2 different stories when you ask questions.
Also, one of the managing partners already farms 1,200 irrigated acres, and is willing to farm this parcel of land as well.
So one of the managing partners is willing to farm this land.... one minute hes managing partner. Other minute it's "Is the renter family relation to someone in CBM? No, and it would be to the highest bidder." Your managing partner is giving you info on what it should be.... when it most likely would be him farming it. No wonder such a sweet deal on renting, and not sharcropping. You have someone with a conflict of interest.
I have shown story does not add up. 2 different stories when you ask questions.
No it is not two different stories, as we were giving examples what we can do.
We do have a managing partner that farms, and he stated he might be willing to farm the land.
We just want to have multiple solutions should we procure the farmland, as our focus is on the bitcoin mining.
IMHO, having the managing partner farm the land is not a good idea because as you stated it might be a conflict of interest. We have to make sure the company does what in the best interest of its investors, and not its managing partners.
We hope this clears things up.
Did old owner come up with rental terms? Did you come up with rental terms? Also is farmer a friend of who did? Is the renter family relation to someone in CBM?
If you are talking about the purchase price for the land, the landowner came up with the terms.
The leasing amount was designed by the co-founder whom is a farmer.
Is the renter family relation to someone in CBM? No, and it would be to the highest bidder.
notlist3d: Was not trying to avoid any question, just misunderstood what was being asked. Please accept our apology.
Thank you for answering some of it. I honestly still have hard time believing co-founder is a farmer... or he would do it most likely. I think we are still missing something here.
I honestly think it is friend or family since you know this 40k your so set on. I don't think there is a chance you had farmers come out and look and bid on using it when you are far from owning it. I also think not wanting sharecropping as owner is crazy
*EDIT I Knew it sounded odd read above in previous comments:
Also, one of the managing partners already farms 1,200 irrigated acres, and is willing to farm this parcel of land as well.
So one of the managing partners is willing to farm this land.... one minute hes managing partner. Other minute it's "Is the renter family relation to someone in CBM? No, and it would be to the highest bidder." Your managing partner is giving you info on what it should be.... when it most likely would be him farming it. No wonder such a sweet deal on renting, and not sharcropping. You have someone with a conflict of interest.
I have shown story does not add up. 2 different stories when you ask questions.
Did old owner come up with rental terms? Did you come up with rental terms? Also is farmer a friend of who did? Is the renter family relation to someone in CBM?
If you are talking about the purchase price for the land, the landowner came up with the terms.
The leasing amount was designed by the co-founder whom is a farmer.
Is the renter family relation to someone in CBM? No, and it would be to the highest bidder.
notlist3d: Was not trying to avoid any question, just misunderstood what was being asked. Please accept our apology.
I fully expect this post to be "self moderated" but I'll make it anyway.
Are you not Ian Quinn, or the entity that goes by that nick on here https://bitcointalk.org/index.php?action=trust;u=526270 and who posted about a similar scheme with a similar name in September? And who cleansed all trace of it by deleting posts?
Are you not Ian Quinn, or the entity that goes by that nick on here https://bitcointalk.org/index.php?action=trust;u=526270 and who posted about a similar scheme with a similar name in September? And who cleansed all trace of it by deleting posts?
Columbia Basin Mining is not a farming company, but has a great opportunity to purchase a parcel of land that benefits the company. Bitcoin mining requires low cost power which we have in the area, and even better is the amount of power available.
Farmland in this area is highly sought after, and the farming community interacts closely with each other. The personal relationship between our co-founder and the landowner gives us the opportunity to purchase this farmland before it goes onto the market. The leasing of the land will be done with all the standard farm leasing documents, and will be leased to the highest bidder to a farmer known by us.
In regards to sharecropping, it may be a good system in your location, however it is not the business model used in our area.
Renting the ground gives us a positive cash flow, and does not take away from our priority of bitcoin mining. If we were to farm the land, we take on a higher risk, with huge unwanted expenses that come with farming. Also the statement “They get all benefits of landownership without buying it.” is untrue because the lessor takes on all the expenses for farmland management and the health of the soil for the next farming year.
We are creating a company that has added value beyond bitcoin mining. This farmland gives the company a great asset, as whereas mining equipment has virtual zero asset value in the end. This also gives the company multiple exit strategies in the future.
We are seeking investors into the bitcoin mining operation, and all this discussion about farming is taking away from our goal. If you truly value this opportunity, we be more than pleased to provide our business plan upon signing our Mutual Non-Disclosure Agreement.
Farmland in this area is highly sought after, and the farming community interacts closely with each other. The personal relationship between our co-founder and the landowner gives us the opportunity to purchase this farmland before it goes onto the market. The leasing of the land will be done with all the standard farm leasing documents, and will be leased to the highest bidder to a farmer known by us.
In regards to sharecropping, it may be a good system in your location, however it is not the business model used in our area.
Renting the ground gives us a positive cash flow, and does not take away from our priority of bitcoin mining. If we were to farm the land, we take on a higher risk, with huge unwanted expenses that come with farming. Also the statement “They get all benefits of landownership without buying it.” is untrue because the lessor takes on all the expenses for farmland management and the health of the soil for the next farming year.
We are creating a company that has added value beyond bitcoin mining. This farmland gives the company a great asset, as whereas mining equipment has virtual zero asset value in the end. This also gives the company multiple exit strategies in the future.
We are seeking investors into the bitcoin mining operation, and all this discussion about farming is taking away from our goal. If you truly value this opportunity, we be more than pleased to provide our business plan upon signing our Mutual Non-Disclosure Agreement.
You keep skipping important questions I ask again:
Did old owner come up with rental terms? Did you come up with rental terms? Also is farmer a friend of who did? Is the renter family relation to someone in CBM?
Please anwser the above question and stop skipping it. Your rent is not anywhere right almost 40 years to get land paid off... your renting to cheap to someone. Sharecropping works great. I will ask how many farms have you dealt with before on renters or sharecroppers? I don't think many. Sharecropping is heard of everywhere there is farming it is common. It benefits landowners rights and pays better as long as your person is actually farming. Only way it does not work is if the farmer is skipping seasons or not using it. I feel like your being feed info from a renter as far as the deal on land, or someone that has relationship to renter.
You have to see 40 year pay off on land from rent is to little on rent if that is model you want to go. I mean heck depending on the land I could get good money on hunting rights I'm guessing with land rental you threw those in for free. You just don't see all positives of owning land. If you sharecrop and it's done right you will have multiple farmers who want the land.
Honestly your should go just enough land for bitcoin mining. If you are not willing to do options that make the land most profitable, there is zero reason to buy it over going and getting a warehouse for much cheaper.
Interesting.
Anyways, saw some things I didn't see answered. Like what is your experience in this realm specifically? How are you planning to compete with bigger mining farms (and producers of equipment that are growing at an exponential pace)?
Anyways, saw some things I didn't see answered. Like what is your experience in this realm specifically? How are you planning to compete with bigger mining farms (and producers of equipment that are growing at an exponential pace)?
We have managing partners that are already doing small bitcoin mining operation.
We also sent you a PM.
...
Why could you not structure the land purchase so that CBM gets their 8 acres and the balance of the land go to another party that the Seller also knows? Based on the above, it sounds like that the Seller of the land could find a Buyer who would continue to farm the land.
I agree with notlist3d (or perhaps I am extending his idea) that the mining and farmland should be separate entities.
I suspect there are many here who would like to take a look at your mining opportunity. If you make it a "clean" business offer, that would likely interest more investors.
* Transparency matters. *
Why could you not structure the land purchase so that CBM gets their 8 acres and the balance of the land go to another party that the Seller also knows? Based on the above, it sounds like that the Seller of the land could find a Buyer who would continue to farm the land.
I agree with notlist3d (or perhaps I am extending his idea) that the mining and farmland should be separate entities.
I suspect there are many here who would like to take a look at your mining opportunity. If you make it a "clean" business offer, that would likely interest more investors.
* Transparency matters. *
If the mining is done on the same land, though, wouldn't the farmland then be tax exempt? I'm not 100% sure on that but based on my understanding, if the property is legally used for farming, it's exempt.
Farmland is not tax exempted.
Interesting.
Anyways, saw some things I didn't see answered. Like what is your experience in this realm specifically? How are you planning to compete with bigger mining farms (and producers of equipment that are growing at an exponential pace)?
...
Why could you not structure the land purchase so that CBM gets their 8 acres and the balance of the land go to another party that the Seller also knows? Based on the above, it sounds like that the Seller of the land could find a Buyer who would continue to farm the land.
I agree with notlist3d (or perhaps I am extending his idea) that the mining and farmland should be separate entities.
I suspect there are many here who would like to take a look at your mining opportunity. If you make it a "clean" business offer, that would likely interest more investors.
* Transparency matters. *
Why could you not structure the land purchase so that CBM gets their 8 acres and the balance of the land go to another party that the Seller also knows? Based on the above, it sounds like that the Seller of the land could find a Buyer who would continue to farm the land.
I agree with notlist3d (or perhaps I am extending his idea) that the mining and farmland should be separate entities.
I suspect there are many here who would like to take a look at your mining opportunity. If you make it a "clean" business offer, that would likely interest more investors.
* Transparency matters. *
If the mining is done on the same land, though, wouldn't the farmland then be tax exempt? I'm not 100% sure on that but based on my understanding, if the property is legally used for farming, it's exempt.
Farmland is not tax exempted.
...
Why could you not structure the land purchase so that CBM gets their 8 acres and the balance of the land go to another party that the Seller also knows? Based on the above, it sounds like that the Seller of the land could find a Buyer who would continue to farm the land.
I agree with notlist3d (or perhaps I am extending his idea) that the mining and farmland should be separate entities.
I suspect there are many here who would like to take a look at your mining opportunity. If you make it a "clean" business offer, that would likely interest more investors.
* Transparency matters. *
Why could you not structure the land purchase so that CBM gets their 8 acres and the balance of the land go to another party that the Seller also knows? Based on the above, it sounds like that the Seller of the land could find a Buyer who would continue to farm the land.
I agree with notlist3d (or perhaps I am extending his idea) that the mining and farmland should be separate entities.
I suspect there are many here who would like to take a look at your mining opportunity. If you make it a "clean" business offer, that would likely interest more investors.
* Transparency matters. *
If the mining is done on the same land, though, wouldn't the farmland then be tax exempt? I'm not 100% sure on that but based on my understanding, if the property is legally used for farming, it's exempt.
...
Why could you not structure the land purchase so that CBM gets their 8 acres and the balance of the land go to another party that the Seller also knows? Based on the above, it sounds like that the Seller of the land could find a Buyer who would continue to farm the land.
I agree with notlist3d (or perhaps I am extending his idea) that the mining and farmland should be separate entities.
I suspect there are many here who would like to take a look at your mining opportunity. If you make it a "clean" business offer, that would likely interest more investors.
* Transparency matters. *
Why could you not structure the land purchase so that CBM gets their 8 acres and the balance of the land go to another party that the Seller also knows? Based on the above, it sounds like that the Seller of the land could find a Buyer who would continue to farm the land.
I agree with notlist3d (or perhaps I am extending his idea) that the mining and farmland should be separate entities.
I suspect there are many here who would like to take a look at your mining opportunity. If you make it a "clean" business offer, that would likely interest more investors.
* Transparency matters. *
They answered half of the questions so I will ask it again below. I suspect renter is either friend of old landowner or someone in the project. I want to know who came up with terms. With spending a ton on land sharecropping is way to go. This flat rate long term is a sweetheart deal for someone. They get all benefits of landownership without buying it.
I think we are in agreement there is a reason they want to buy all the land not just some. Even paying a premium for a small part is MUCH cheaper then buying whole thing. And you can mix different buisnesses but I feel they are going down wrong path. I think there is a reason they want all the land. Who ever the renter is get's one very sweet deal, which makes me think this provision was made by friend either old owner or this CBM added it for a friend.
It is not a surprise he is not leaving equipment it's hard to say but it could be as much as the land. With it the deal is much more attractive.
There are a few red flags on it first is long term lease. With owning the land when sharecropping you are normally responsible for land upkeep, maybe they pay 1/3 at most but at least 2/3 if not all is on landowner. With long term lease there is no computation your chances are giving it to the previous owners buddy. You need to at least do it as a bid and have more then 1 farmer bidding on what they will pay. But since it's your land upkeep or improvement make sense landowner benefits from.
Also normally it is not a flat fee if just flat fee if your just getting flat fee your getting screwed with owning the land. Normally you get a percentage of the crops. 2/3 land owner and 1/3 sharecropper is very common.
I think you a little over your head on the farming and land ownership. I HIGHLY suggest getting someone who knows industry to consult before going with deal. I think it's a pretty sweet deal for sharecropper getting it at flat rate. But as land owner getting just a flat rate is not normal at all. You want a share of what is produced.
Did previous owner come up with these terms with sell? Sounds like something someone would do for a friend he want's to farm it that does not have cash for land. To get a flat fee at a rate low enough to pay for all upkeep out of sharecroppers hand you know you are getting much lower then you could. Look at it renter is getting all the benefits of landownership without cost with your longterm lease. Don't sign current deal, trust me on getting a consultant.
There are a few red flags on it first is long term lease. With owning the land when sharecropping you are normally responsible for land upkeep, maybe they pay 1/3 at most but at least 2/3 if not all is on landowner. With long term lease there is no computation your chances are giving it to the previous owners buddy. You need to at least do it as a bid and have more then 1 farmer bidding on what they will pay. But since it's your land upkeep or improvement make sense landowner benefits from.
Also normally it is not a flat fee if just flat fee if your just getting flat fee your getting screwed with owning the land. Normally you get a percentage of the crops. 2/3 land owner and 1/3 sharecropper is very common.
I think you a little over your head on the farming and land ownership. I HIGHLY suggest getting someone who knows industry to consult before going with deal. I think it's a pretty sweet deal for sharecropper getting it at flat rate. But as land owner getting just a flat rate is not normal at all. You want a share of what is produced.
Did previous owner come up with these terms with sell? Sounds like something someone would do for a friend he want's to farm it that does not have cash for land. To get a flat fee at a rate low enough to pay for all upkeep out of sharecroppers hand you know you are getting much lower then you could. Look at it renter is getting all the benefits of landownership without cost with your longterm lease. Don't sign current deal, trust me on getting a consultant.
Columbia Basin Mining (“CBM”) co-founder is from an well established third generation of farmers, so understanding how agronomics work is nothing new. The following is his position as an active farmer and businessman of 28 years.
Sharecropping is not heard of in our area (Pacific Northwest).
We have many established farmers that will submit bids on rental rates. CBM is promoting rental rate as $500/acre conservatively in our pro forma as an amount to count on. Currently the industry is not on the top or even climbing in profitability margin. This was a lean year and next year doesn’t show much signs of improving. Farmers do not win consistently every year.
Sharecroping with a potato grower who has $4000/acre into his crop and then loses $1000/acre due to extreme weather conditions does not create a stable environment for our investors.
A long term lease (4 years) has two benefits, by:
• Allowing the farmer to run their rotation and be invested in the health of the soil for the next year.
• Allows CBM to receive its cash rent at the beginning of each year as it is not in the business to “farm” but produce lucrative returns for its investors.
There are pros and cons to every lease scenario.
We are focused on the bigger picture of Bitcoin Mining.
Sharecropping is actually a very good system for landowner. It is far from unheard of, a flat pay you lose all benefits of land ownership. Trust me your losing a lot of potential profit. Your signing a deal where someone gets all benefits of owning land without buying.
I don't believe you are active on farming... or you would have farmed it yourself. So somethings do not make sense. You have to see that. A sweet deal for renter. And you say you have third generation farmers.... but they don't want to farm this land? Makes no sense unless that is who is the renter if hes's part of your project. If so it is structured heavily tword renter from a insider.
Did old owner come up with terms? Did you come up with terms? Also is farmer a friend of who did? Is the renter family relation to someone in CBM? It just is nothing like normal on the deal. Someone is trying to give the sharecropper/renter a sweet deal for them.
*Edit your also forgetting about insurance on bad crop's or weather. If you were truly in the industry and for some reason your crops are being killed by weather or other factors you can get insurance on it. It is not cheap but if you think it's that bad of farming most would insure it. And if the weather is that extreme always likely you are buying a crappy spot for farmland.
Columbia Basin Mining is not a farming company, but has a great opportunity to purchase a parcel of land that benefits the company. Bitcoin mining requires low cost power which we have in the area, and even better is the amount of power available.
Farmland in this area is highly sought after, and the farming community interacts closely with each other. The personal relationship between our co-founder and the landowner gives us the opportunity to purchase this farmland before it goes onto the market. The leasing of the land will be done with all the standard farm leasing documents, and will be leased to the highest bidder to a farmer known by us.
In regards to sharecropping, it may be a good system in your location, however it is not the business model used in our area.
Renting the ground gives us a positive cash flow, and does not take away from our priority of bitcoin mining. If we were to farm the land, we take on a higher risk, with huge unwanted expenses that come with farming. Also the statement “They get all benefits of landownership without buying it.” is untrue because the lessor takes on all the expenses for farmland management and the health of the soil for the next farming year.
We are creating a company that has added value beyond bitcoin mining. This farmland gives the company a great asset, as whereas mining equipment has virtual zero asset value in the end. This also gives the company multiple exit strategies in the future.
We are seeking investors into the bitcoin mining operation, and all this discussion about farming is taking away from our goal. If you truly value this opportunity, we be more than pleased to provide our business plan upon signing our Mutual Non-Disclosure Agreement.
...
Why could you not structure the land purchase so that CBM gets their 8 acres and the balance of the land go to another party that the Seller also knows? Based on the above, it sounds like that the Seller of the land could find a Buyer who would continue to farm the land.
I agree with notlist3d (or perhaps I am extending his idea) that the mining and farmland should be separate entities.
I suspect there are many here who would like to take a look at your mining opportunity. If you make it a "clean" business offer, that would likely interest more investors.
* Transparency matters. *
Why could you not structure the land purchase so that CBM gets their 8 acres and the balance of the land go to another party that the Seller also knows? Based on the above, it sounds like that the Seller of the land could find a Buyer who would continue to farm the land.
I agree with notlist3d (or perhaps I am extending his idea) that the mining and farmland should be separate entities.
I suspect there are many here who would like to take a look at your mining opportunity. If you make it a "clean" business offer, that would likely interest more investors.
* Transparency matters. *
They answered half of the questions so I will ask it again below. I suspect renter is either friend of old landowner or someone in the project. I want to know who came up with terms. With spending a ton on land sharecropping is way to go. This flat rate long term is a sweetheart deal for someone. They get all benefits of landownership without buying it.
I think we are in agreement there is a reason they want to buy all the land not just some. Even paying a premium for a small part is MUCH cheaper then buying whole thing. And you can mix different buisnesses but I feel they are going down wrong path. I think there is a reason they want all the land. Who ever the renter is get's one very sweet deal, which makes me think this provision was made by friend either old owner or this CBM added it for a friend.
It is not a surprise he is not leaving equipment it's hard to say but it could be as much as the land. With it the deal is much more attractive.
There are a few red flags on it first is long term lease. With owning the land when sharecropping you are normally responsible for land upkeep, maybe they pay 1/3 at most but at least 2/3 if not all is on landowner. With long term lease there is no computation your chances are giving it to the previous owners buddy. You need to at least do it as a bid and have more then 1 farmer bidding on what they will pay. But since it's your land upkeep or improvement make sense landowner benefits from.
Also normally it is not a flat fee if just flat fee if your just getting flat fee your getting screwed with owning the land. Normally you get a percentage of the crops. 2/3 land owner and 1/3 sharecropper is very common.
I think you a little over your head on the farming and land ownership. I HIGHLY suggest getting someone who knows industry to consult before going with deal. I think it's a pretty sweet deal for sharecropper getting it at flat rate. But as land owner getting just a flat rate is not normal at all. You want a share of what is produced.
Did previous owner come up with these terms with sell? Sounds like something someone would do for a friend he want's to farm it that does not have cash for land. To get a flat fee at a rate low enough to pay for all upkeep out of sharecroppers hand you know you are getting much lower then you could. Look at it renter is getting all the benefits of landownership without cost with your longterm lease. Don't sign current deal, trust me on getting a consultant.
There are a few red flags on it first is long term lease. With owning the land when sharecropping you are normally responsible for land upkeep, maybe they pay 1/3 at most but at least 2/3 if not all is on landowner. With long term lease there is no computation your chances are giving it to the previous owners buddy. You need to at least do it as a bid and have more then 1 farmer bidding on what they will pay. But since it's your land upkeep or improvement make sense landowner benefits from.
Also normally it is not a flat fee if just flat fee if your just getting flat fee your getting screwed with owning the land. Normally you get a percentage of the crops. 2/3 land owner and 1/3 sharecropper is very common.
I think you a little over your head on the farming and land ownership. I HIGHLY suggest getting someone who knows industry to consult before going with deal. I think it's a pretty sweet deal for sharecropper getting it at flat rate. But as land owner getting just a flat rate is not normal at all. You want a share of what is produced.
Did previous owner come up with these terms with sell? Sounds like something someone would do for a friend he want's to farm it that does not have cash for land. To get a flat fee at a rate low enough to pay for all upkeep out of sharecroppers hand you know you are getting much lower then you could. Look at it renter is getting all the benefits of landownership without cost with your longterm lease. Don't sign current deal, trust me on getting a consultant.
Columbia Basin Mining (“CBM”) co-founder is from an well established third generation of farmers, so understanding how agronomics work is nothing new. The following is his position as an active farmer and businessman of 28 years.
Sharecropping is not heard of in our area (Pacific Northwest).
We have many established farmers that will submit bids on rental rates. CBM is promoting rental rate as $500/acre conservatively in our pro forma as an amount to count on. Currently the industry is not on the top or even climbing in profitability margin. This was a lean year and next year doesn’t show much signs of improving. Farmers do not win consistently every year.
Sharecroping with a potato grower who has $4000/acre into his crop and then loses $1000/acre due to extreme weather conditions does not create a stable environment for our investors.
A long term lease (4 years) has two benefits, by:
• Allowing the farmer to run their rotation and be invested in the health of the soil for the next year.
• Allows CBM to receive its cash rent at the beginning of each year as it is not in the business to “farm” but produce lucrative returns for its investors.
There are pros and cons to every lease scenario.
We are focused on the bigger picture of Bitcoin Mining.
Sharecropping is actually a very good system for landowner. It is far from unheard of, a flat pay you lose all benefits of land ownership. Trust me your losing a lot of potential profit. Your signing a deal where someone gets all benefits of owning land without buying.
I don't believe you are active on farming... or you would have farmed it yourself. So somethings do not make sense. You have to see that. A sweet deal for renter. And you say you have third generation farmers.... but they don't want to farm this land? Makes no sense unless that is who is the renter if hes's part of your project. If so it is structured heavily tword renter from a insider.
Did old owner come up with terms? Did you come up with terms? Also is farmer a friend of who did? Is the renter family relation to someone in CBM? It just is nothing like normal on the deal. Someone is trying to give the sharecropper/renter a sweet deal for them.
*Edit your also forgetting about insurance on bad crop's or weather. If you were truly in the industry and for some reason your crops are being killed by weather or other factors you can get insurance on it. It is not cheap but if you think it's that bad of farming most would insure it. And if the weather is that extreme always likely you are buying a crappy spot for farmland.
...
Why could you not structure the land purchase so that CBM gets their 8 acres and the balance of the land go to another party that the Seller also knows? Based on the above, it sounds like that the Seller of the land could find a Buyer who would continue to farm the land.
I agree with notlist3d (or perhaps I am extending his idea) that the mining and farmland should be separate entities.
I suspect there are many here who would like to take a look at your mining opportunity. If you make it a "clean" business offer, that would likely interest more investors.
* Transparency matters. *
Why could you not structure the land purchase so that CBM gets their 8 acres and the balance of the land go to another party that the Seller also knows? Based on the above, it sounds like that the Seller of the land could find a Buyer who would continue to farm the land.
I agree with notlist3d (or perhaps I am extending his idea) that the mining and farmland should be separate entities.
I suspect there are many here who would like to take a look at your mining opportunity. If you make it a "clean" business offer, that would likely interest more investors.
* Transparency matters. *
It is not a surprise he is not leaving equipment it's hard to say but it could be as much as the land. With it the deal is much more attractive.
There are a few red flags on it first is long term lease. With owning the land when sharecropping you are normally responsible for land upkeep, maybe they pay 1/3 at most but at least 2/3 if not all is on landowner. With long term lease there is no computation your chances are giving it to the previous owners buddy. You need to at least do it as a bid and have more then 1 farmer bidding on what they will pay. But since it's your land upkeep or improvement make sense landowner benefits from.
Also normally it is not a flat fee if just flat fee if your just getting flat fee your getting screwed with owning the land. Normally you get a percentage of the crops. 2/3 land owner and 1/3 sharecropper is very common.
I think you a little over your head on the farming and land ownership. I HIGHLY suggest getting someone who knows industry to consult before going with deal. I think it's a pretty sweet deal for sharecropper getting it at flat rate. But as land owner getting just a flat rate is not normal at all. You want a share of what is produced.
Did previous owner come up with these terms with sell? Sounds like something someone would do for a friend he want's to farm it that does not have cash for land. To get a flat fee at a rate low enough to pay for all upkeep out of sharecroppers hand you know you are getting much lower then you could. Look at it renter is getting all the benefits of landownership without cost with your longterm lease. Don't sign current deal, trust me on getting a consultant.
There are a few red flags on it first is long term lease. With owning the land when sharecropping you are normally responsible for land upkeep, maybe they pay 1/3 at most but at least 2/3 if not all is on landowner. With long term lease there is no computation your chances are giving it to the previous owners buddy. You need to at least do it as a bid and have more then 1 farmer bidding on what they will pay. But since it's your land upkeep or improvement make sense landowner benefits from.
Also normally it is not a flat fee if just flat fee if your just getting flat fee your getting screwed with owning the land. Normally you get a percentage of the crops. 2/3 land owner and 1/3 sharecropper is very common.
I think you a little over your head on the farming and land ownership. I HIGHLY suggest getting someone who knows industry to consult before going with deal. I think it's a pretty sweet deal for sharecropper getting it at flat rate. But as land owner getting just a flat rate is not normal at all. You want a share of what is produced.
Did previous owner come up with these terms with sell? Sounds like something someone would do for a friend he want's to farm it that does not have cash for land. To get a flat fee at a rate low enough to pay for all upkeep out of sharecroppers hand you know you are getting much lower then you could. Look at it renter is getting all the benefits of landownership without cost with your longterm lease. Don't sign current deal, trust me on getting a consultant.
Columbia Basin Mining (“CBM”) co-founder is from an well established third generation of farmers, so understanding how agronomics work is nothing new. The following is his position as an active farmer and businessman of 28 years.
Sharecropping is not heard of in our area (Pacific Northwest).
We have many established farmers that will submit bids on rental rates. CBM is promoting rental rate as $500/acre conservatively in our pro forma as an amount to count on. Currently the industry is not on the top or even climbing in profitability margin. This was a lean year and next year doesn’t show much signs of improving. Farmers do not win consistently every year.
Sharecroping with a potato grower who has $4000/acre into his crop and then loses $1000/acre due to extreme weather conditions does not create a stable environment for our investors.
A long term lease (4 years) has two benefits, by:
• Allowing the farmer to run their rotation and be invested in the health of the soil for the next year.
• Allows CBM to receive its cash rent at the beginning of each year as it is not in the business to “farm” but produce lucrative returns for its investors.
There are pros and cons to every lease scenario.
We are focused on the bigger picture of Bitcoin Mining.
Is the farmer leaving his equipment with it? If so what equipment and what year/models?
Depending on farming you would be surprised how much extra you will spend on equipment. Some equipment can add up to over a million easy depending on what your farming.
So I would not count on full farming profits as I have a feeling you will be sharecropping, where someone with the equipment comes over to do it and they take a pretty big chunk of profit. Also stuff to improve the land is out of you pocket. So if the land has not been improved in a while or soil needs work that again is a lot out of your profit.
The farming part scares me personally adding that to mining. Your talking about 2 completely different investments.
Depending on farming you would be surprised how much extra you will spend on equipment. Some equipment can add up to over a million easy depending on what your farming.
So I would not count on full farming profits as I have a feeling you will be sharecropping, where someone with the equipment comes over to do it and they take a pretty big chunk of profit. Also stuff to improve the land is out of you pocket. So if the land has not been improved in a while or soil needs work that again is a lot out of your profit.
The farming part scares me personally adding that to mining. Your talking about 2 completely different investments.
Farmer is not leaving any equipment.
Equipment is not an issue as Columbia Basin Mining will be executing a long term lease at $500 an acre ($40,000 annually) with an existing farmer in the area. We could sign an annual lease and choose to “shop” for a different farmer yearly, and perhaps secure a higher rates. For instance, an annual potato farm lease goes for $800 an acre but can only fall into proper crop rotation once every four years.
In the execution of a long term lease, the leasing farmer will be responsible for his crops and maintain crop conditions standard to common practices to the area.
Executing a leasing agreement with a farmer lets Columbia Basin Mining focus only on the Bitcoin mining aspect of the company while taking advantage of attributes of this property.
MODIFIED
It is not a surprise he is not leaving equipment it's hard to say but it could be as much as the land. With it the deal is much more attractive.
There are a few red flags on it first is long term lease. With owning the land when sharecropping you are normally responsible for land upkeep, maybe they pay 1/3 at most but at least 2/3 if not all is on landowner. With long term lease there is no computation your chances are giving it to the previous owners buddy. You need to at least do it as a bid and have more then 1 farmer bidding on what they will pay. But since it's your land upkeep or improvement make sense landowner benefits from.
Also normally it is not a flat fee if just flat fee if your just getting flat fee your getting screwed with owning the land. Normally you get a percentage of the crops. 2/3 land owner and 1/3 sharecropper is very common.
I think you a little over your head on the farming and land ownership. I HIGHLY suggest getting someone who knows industry to consult before going with deal. I think it's a pretty sweet deal for sharecropper getting it at flat rate. But as land owner getting just a flat rate is not normal at all. You want a share of what is produced.
Did previous owner come up with these terms with sell? Sounds like something someone would do for a friend he want's to farm it that does not have cash for land. To get a flat fee at a rate low enough to pay for all upkeep out of sharecroppers hand you know you are getting much lower then you could. Look at it renter is getting all the benefits of landownership without cost with your longterm lease. Don't sign current deal, trust me on getting a consultant.
Is the farmer leaving his equipment with it? If so what equipment and what year/models?
Depending on farming you would be surprised how much extra you will spend on equipment. Some equipment can add up to over a million easy depending on what your farming.
So I would not count on full farming profits as I have a feeling you will be sharecropping, where someone with the equipment comes over to do it and they take a pretty big chunk of profit. Also stuff to improve the land is out of you pocket. So if the land has not been improved in a while or soil needs work that again is a lot out of your profit.
The farming part scares me personally adding that to mining. Your talking about 2 completely different investments.
Depending on farming you would be surprised how much extra you will spend on equipment. Some equipment can add up to over a million easy depending on what your farming.
So I would not count on full farming profits as I have a feeling you will be sharecropping, where someone with the equipment comes over to do it and they take a pretty big chunk of profit. Also stuff to improve the land is out of you pocket. So if the land has not been improved in a while or soil needs work that again is a lot out of your profit.
The farming part scares me personally adding that to mining. Your talking about 2 completely different investments.
Farmer is not leaving any equipment.
Equipment is not an issue as Columbia Basin Mining will be executing a long term lease at $500 an acre ($40,000 annually) with an existing farmer in the area. We could sign an annual lease and choose to “shop” for a different farmer yearly, and perhaps secure a higher rates. For instance, an annual potato farm lease goes for $800 an acre but can only fall into proper crop rotation once every four years.
In the execution of a long term lease, the leasing farmer will be responsible for his crops and maintain crop conditions standard to common practices to the area.
Executing a leasing agreement with a farmer lets Columbia Basin Mining focus only on the Bitcoin mining aspect of the company while taking advantage of attributes of this property.
MODIFIED
Your combining two very different investments I think. 80 acres is a good amount of farm land. For a data center you don't need anywhere near this. You just need the building really and land it sets on.
You are combining farming.... and mining. The two just do not really fit together. The are completely different in most ways.
You are combining farming.... and mining. The two just do not really fit together. The are completely different in most ways.
The owner of this farm is retiring and wants the land to go to someone they know (this is not a public sale).
Currently finding 1MW of power available in Washington State has become extremely difficult of late, and taking advantage of the power available and low energy cost, this is ideal for a small data center.
It may not seem like a fit, but we have managing partners with experience in both farming, and bitcoin mining. This gives us two revenue streams to handle the payments, and have a substantial asset, unlike mining equipment.
Is the farmer leaving his equipment with it? If so what equipment and what year/models?
Depending on farming you would be surprised how much extra you will spend on equipment. Some equipment can add up to over a million easy depending on what your farming.
So I would not count on full farming profits as I have a feeling you will be sharecropping, where someone with the equipment comes over to do it and they take a pretty big chunk of profit. Also stuff to improve the land is out of you pocket. So if the land has not been improved in a while or soil needs work that again is a lot out of your profit.
The farming part scares me personally adding that to mining. Your talking about 2 completely different investments.
Your combining two very different investments I think. 80 acres is a good amount of farm land. For a data center you don't need anywhere near this. You just need the building really and land it sets on.
You are combining farming.... and mining. The two just do not really fit together. The are completely different in most ways.
You are combining farming.... and mining. The two just do not really fit together. The are completely different in most ways.
The owner of this farm is retiring and wants the land to go to someone they know (this is not a public sale).
Currently finding 1MW of power available in Washington State has become extremely difficult of late, and taking advantage of the power available and low energy cost, this is ideal for a small data center.
It may not seem like a fit, but we have managing partners with experience in both farming, and bitcoin mining. This gives us two revenue streams to handle the payments, and have a substantial asset, unlike mining equipment.
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