Former Dairy

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The Opportunity

The Seller, Northwest Farm Credit Services, has ordered this 130± acre former dairy, previously listed for sale at $790,000, to be sold in an Absolute Auction on May 12, 2012 to the high bidder on an “As Is” all cash basis – providing significant investment opportunity to a new owner.
The property is located in the Upper Klamath Basin, 20± miles east of Klamath Falls in one of the Pacific Northwest’s prime agriculture regions, and overlooks the Yonna Valley, three miles north of the community of Bonanza. It is located near the largest concentration of dairy operations in southern Klamath County, with good access to processing plants operated by Darigold in Medford, Oregon, Rogue Creamery in Central Point, Oregon, Umpqua Dairy in Roseburg, Oregon and Horizon Organics in Reno, Nevada.

The 130± acre property has 34± acres of irrigated farmland and was originally developed as a dairy in 1998 with 500-head capacity, and then sold in 2007 to the prior owner who made a significant investment of over $700,000 in the construction of a 60,885± square foot freestall barn in 2008. The dairy had capacity of 550 Jersey cows when it ceased operations in November, 2009.
The combination of selling both the irrigated farmland and over 80,000± square feet of improvements to the high bidder in order to expand existing dairy operations, or consider re-use options, is a rare agriculture investment opportunity today in the Upper Klamath Basin.

Address

3811 Haskins Rd , Bonanza, Klamath County, Oregon, 97623 

Published Reserve

No Minimum Bid. Absolute Sale – to be sold to the high bidder. 

Last Asking

790,000 

Size

130± Acres 

Zoning

EFU/CG – Exclusive Farm Use Cropland Grazing 

Property Inspection

By Appointment Only 

Financing

None – All Cash 

Description

PROPERTY DESCRIPTION AND IMPROVEMENTS

The 130± acre property is located at 3811 Haskins Road, three miles northwest of Bonanza, between Highways 140 and 70. The property is rectangular in shape, overlooks the Yonna Valley and includes an estimated 34± acres of irrigated crop land and 12± acres developed with dairy facilities (barns, milk complex, dairy lagoon, two bedroom/one bathroom farm house and barn/shop). The dairy facilities are located on a ridgetop above both the house and irrigated farmland, with an access drive from Haskins Road. The balance of the land (84± acres) is primarily range and grazing land along the foothills of Short Lake Mountain. Elevations range from 4,100± to 4,400± feet. The property is bordered by other irrigated farmland, pasture and residences.

There is a Water Right Certificate #85912 (see Supplemental Information Package) with a priority date of May 14, 1990 that allows for irrigation of 34± acres of land, with the point of diversion being a well located near the dairy complex.

A 1.5± acre dairy waste water lagoon allows for supplemental irrigation water. Six inch buried lines transport water from the lagoon and well site to the farmland. (Please note that no irrigation equipment is included as part of this sale with the exception of some stored lines near the freestall/hay barn.) The majority of the irrigated farmland is Calimus loam, based on soils data and map provided by USDA and NRCS.

CAFO Permit and Effluent Management

There is no CAFO Permit (Confined Animal Feeding Operation) for the property, which includes a lagoon and settling pond west of the new freestall barn. The last permit on file with Natural Resources Division of the Oregon Department of Agriculture expired on July 31, 2008. A new application was never completed by the prior owner to permit over 500 head of milk cows. According to Oregon Department of Agriculture, existing cropland could not accommodate waste water from an increased capacity and arrangements would need to be made to transfer this waste water off site to nearby or adjoining land. Separated soils could be sold for off–site fertilization (see Supplemental Information Package for copies of old Permit and other data concerning the CAFO Permit).

Milk Barn Complex – 5,923± Square Feet

The milk barn complex was built in 1998 and consists of a double ten California walk–thru–style parlor (36 feet by 42 feet) with an equal number of stalls contained on either side of the barn. The milking equipment has been removed from the parlor with the exception of some vacuum lines. Some equipment, including chiller and additional miscellaneous equipment, are currently in storage and will be included as part of the sale. Entry and exit gates are set up for air–controlled operation.

The milk house/tank room includes one 2,000 gallon Dari–Kool milk tank with a Dari–Kool/ Bourmatic tank wash system and one 2,000 gallon Mueller milk tank with Mueller automated tank system and two Partlow temperature recorders. This existing milk tank capacity of 4,000 gallons of storage will accommodate a milking herd of roughly 500 milk cows at the industry average production of eight gallons per milk cow per day. Additional equipment in the milk barn includes a vacuum line, two ice machines with Copeland compressors, a Therma–Stor water heater and Dayton air compressor.

There is a restroom and storage rooms on the main floor, and upstairs office with windows that overlook the parlor and unfinished storage.

The holding pen (36 feet by 88 feet) is located on the north side of the parlor and has a concrete slab foundation with three foot pipe fencing exit lanes on each side.

Freestall Barn – 60,885± Square Feet

This freestall barn was built in 2008 and consists of steel pole construction with concrete slab flooring and stern–walls, measuring 99 feet by 615 feet, with metal roof. The barn layout includes an 18 foot center feed alley. The west side of the barn has a 13 foot cow lane with open feed bunks and open loafing area. The east side of the barn is similar, with the exception of the southern–most 300 feet which is finished with pipe and cable fencing separating the cow lane from the loafing area. This section of the barn also includes self–locking (5 in 10 feet) stanchions for 150 milk cows.

The barn was designed with the intent of finishing the building with head to head freestall beds down each side, followed by a back cow lane. Pipe and cable exercise pens are on both the east and west sides of the barn, with an additional 14 foot by 300 foot transfer lane on the south side.

Newer transfer lines with pipe and cable fencing help with movement of cattle between the milk barn complex and two freestall barns. There is a flush system for waste management and twelve concrete water troughs throughout the barn.

Freestall/Hay Barn – 13,760± Square Feet

This older, wood pole barn is 80 feet by 172 feet, located next to the milk barn complex and the newer freestall barn. It provides storage for hay in the center area that is 40 feet by 160 feet, while lean–tos on the north, east and west sides provide cows with open loafing. The east side of the barn includes a 12 foot cow lane with 37 (8 feet wide) metal loop freestall beds. The west side is set up in a similar fashion, however all loops have been removed for an open loafing area. Each side includes 70 linear feet of self–locking stanchions for cows. There are flush lanes for waste management.

Hay Barn – 5,820± Square Feet

This older, wood pole hay barn is 40 feet by 97 feet, and has a 20 foot by 97 foot lean–to along the eastside. The barn is located at the top of the access road, between the dairy facilities and farm home.

Residence with Detached Garage and Storage Shed/Shop

These improvements are all located near Haskins Road, by the irrigated farmland on the northern portion of the property. The residence was constructed in the 1930s and has two bedrooms and one bathroom with kitchen/eating area, living room with enclosed porch and a small covered breezeway to an 11 foot by 16 foot pump house/storage room. There was a wood stove that was removed. The home is in disrepair and not available for inspection.

There is a detached, two–car garage building next to the home and a small storage shed/shop east of the garage that is in poor condition.

A domestic well and septic system had served the residence.

In addition, there are three abandoned mobile homes located in the southwest corner of the property along Haskins Road that had been used by employees of the dairy. A second well served these mobile homes, and the mobile homes had septic systems. These homes are not owned by the Seller and will not be removed prior to the sale of the property.

Terms and Conditions of the Auction #1201

REALTY MARKETING/NORTHWEST
AUCTION INFORMATION OFFICE

Oregon Office:
522 SW Fifth Avenue, Suite 1250
Portland, Oregon 97204
Phones (during regular business hours)
Portland Metro Area (503) 228–3248
Elsewhere (800) 845–3524
Facsimile 503) 242–1814
Email: info@rmnw–auctions.com

ORAL AUCTION

12:00 P.M., Saturday, May 12, 2012
Location: Sheraton Portland Airport Hotel
8235 Northeast Airport Way, Portland, OR 97220

NO MINIMUM BID

The Dairy Property is being offered with No Minimum Bid, on an Absolute basis. This means the Seller has established no Minimum or Reserve Price, and the property will be sold to the high bidder, subject to terms and conditions of the Auction. The successful Bidder will be required to pay all customary closing costs, including, but not limited, to title insurance premiums, full escrow fees, back taxes and penalties (if any), local improvement and irrigation district assessments (if any).

BID BY MAIL – CALL AUCTION INFORMATION OFFICE

If you are unable to attend the Oral Auction, request a Mail Bid Form by calling the Auction Information Office at 1–800–845–3524. Mail Bid Forms will be accepted when accompanied by a completed Registration Form and Certified Funds made payable to the Realty Marketing/Northwest Client Trust Account in the amount equal to 10% of the maximum authorized bid for the property. If you are not the successful bidder, your deposit will be returned to you by mail by the third business day following the Auction.

REGISTRATION – FILL OUT AUCTION REGISTRATION FORM

Registration is required for eligibility to bid at the Oral Auction. Complete and return the Auction Registration Form at least three days prior to the Oral Auction.
On Auction day, all registered bidders must show they have in their possession a separate Cashier Check or Certified Check (“Certified Funds”) made out to the bidder in the amount of $40,000.

AUCTION DAY PROCEDURES

PRE–REGISTERED BIDDERS:

As a Pre–registered bidder, you will check in at the Pre–registered Bidder area prior to the Auction. You will be asked to show your Certified Funds as described under Registration. You will receive your assigned Bidder Number.

AUCTION DAY REGISTRATION:

Those who register on Auction Day will be required to complete the Auction Registration Form and provide evidence of Certified Funds in the amount of $40,000. Auction Day registrants should plan to arrive at least thirty minutes prior to the Auction in order to complete the registration process.

BIDDING:

Bidding on the property will take approximately five minutes. As the successful bidder, you will sign a Bid Confirmation Sheet immediately upon acceptance of your high bid.

WRITING THE SALES CONTRACT:

In the Contract Area on Auction Day, you will sign the sales contract and make an earnest money deposit of ten percent (10%) of your bid price, but in no event less than the amount of $40,000. Your Certified Funds will be deposited as a portion of your earnest money deposit. The balance of the earnest money deposit may be by personal or company check. In addition to the Purchase and Sale Agreement, you will sign a Buyer Acknowledgement form verifying you have inspected the property and are purchasing it in its “as is” condition. No allowances will be made for contingencies. Sample copies of contract documents are available in the Supplemental Information Package. The sales contract is a binding contract.

CLOSING

The Escrow will be held at AmeriTitle in Klamath Falls, Oregon and Closing is scheduled to occur within 45 days of Seller acceptance of the successful bid.

COOPERATING BROKERS

Broker cooperation is invited. A commission of 2% will be paid to the real estate agent whose Buyer closes on the Auction Property. The real estate agent must be a broker currently licensed by his/her state of residence or a salesperson licensed under such broker. Cooperating broker commissions will be paid upon close of escrow. Cooperating brokers will not share in any payment of liquidated damages.

Buyers must register their real estate agent on the Auction Registration Form. The Registration Form should be received by the Auction Information Office at least three days prior to the Auction. No Auction Day Registration of real estate agents will be accepted.
Registered real estate agents must attend the Auction with their Buyer and must accompany their Buyer into the contract area if their Buyer is the successful high bidder.

No real estate agent will be recognized for a Buyer where that Buyer has previously contacted, or been contacted by, the Seller, or Realty Marketing/Northwest, concerning the Auction Property purchased. No commission will be paid to any real estate agent participating as a principal in the purchase of the property. The commission will be earned and paid upon the full and final closing by the Buyer on the conveyance of the property and the receipt of the full purchase price by Seller. No exceptions to this procedure will be made and no oral registrations will be accepted.

ADDITIONAL CONDITIONS

(A) No claim will be considered for allowance, adjustment or rescission based on failure of the property to correspond to any particular expectation or standard (except the Preliminary Title Report).
(B) Title insurance is available for the property, ensuring the title of such property to be in fee simple, subject to no encumbrances except current taxes and assessments, easements, rights–of–way, reservations, covenants, conditions and restrictions of record, purchase money financing and printed exceptions in the standard form Owner’s Title Policy. A copy of the Preliminary Title Report is available for inspection before the Auction.
(C) To the extent permitted by law, the property will be sold “As Is”. Prospective buyers should examine the property and all supporting documentation carefully. Each bidder is responsible for evaluating the property and shall not rely on the Seller or sales agents. Buyer will take possession at close of escrow.
(D) Sizes and square footages set forth for the property are an approximation only, based on the best information available, and actual sizes and square footages may be different. All sketch plans are conceptual in nature and neither Seller nor its agents have submitted plan or made applications to any public agency.
(E) Agency Disclosure. The selling and listing agent, Realty Marketing/Northwest, represents the Seller in these transactions.
(F) Seller has the right to postpone or cancel the Auction in whole or in part, at his sole discretion, and to modify or add any terms and conditions of sale and to announce such modifications or additional conditions either prior to or at the Auction.
(G) Offer void where prohibited. Catalog will not be mailed to residents of any state for which this offering is not in compliance with real estate laws or other laws of that state.
(H) The information contained herein has been gathered from sources deemed reliable; however, Realty Marketing/Northwest makes no warranties expressed or implied as to accuracy of the information contained herein.

Need Help?

Realty Marketing/Northwest prides itself on the quality of its service. If at any time you need special assistance, please contact John Rosenthal, President at (800) 845–3524 or (503) 228–3248.

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REALTY MARKETING/NORTHWEST
P.O. BOX 6465
PORTLAND, OREGON 97228