Skaar Livestock & Farming- NEW LISTING

Skaar Livestock & Farming- NEW LISTING

Largest Cattle-Feed Production Operation in Eastern Idaho

Lewisville, Idaho

  • $10,000,000
  • Approximately 1,090.96 Deeded Acres
  • Feedlot Permitted for 25,000 Head of Cattle

Louis Skaar & Sons Inc. was founded by Louis Skaar in 1945 in its present location in Lewisville, Idaho near Rigby and Idaho Falls.  Tthe largest operation of its kind in eastern Idaho, Skaar engages in cattle-feed production, cattle feeding, cattle and manure sales, and transportation of cattle and feed commodities.  Presently Skaar Livestock & Farming is privately held by Louis’s sons, DuWayne and Justin Skaar who are actively engaged in operations on a daily basis and recognized as leaders in the industry.

Today, the Skaar brothers operate the 125 acres of pens, concrete feed bunkers and associated improvements, feeding about 18,000 head of cattle.  In addition to the feedlot which is permitted for 25,000 head of cattle, Skaar also has a 1,500-head Calf Lot located six miles east of the Headquarters as well as 998 acres of productive laser-leveledflood-irrigated farmland. Modern mechanized and irrigated farming techniques utilized by Skaar provide a constant source of cattle feed, producing approximately 50% of the necessary feed.  Raised crops include alfalfa, hay, barley and corn.  The balance of the required feed is obtained from the nearby Eastern Idaho region.  A fleet of over-the-road semis gives the operation the ability to transport food or livestock on an as-needed basis.

Twenty-five workers are employed full time.  A half dozen or more seasonal workers are also employed during the busiest summer growing season.  Farming is mechanized with heavy machinery for production efficiency.  Most of the workers live within twenty miles of the Headquarters.  Retirement and health plans are also provided.

Skaar relies on an animal nutritionist to ensure the nutritional value of the feed being provided to the cattle.  There is also a veterinarian that makes regular visits to ensure the welfare of the cattle and to provide Skaar with guidelines for cattle care.

Skaar no longer grows potatoes, but potato slurry from a nearby processing plant is one of the substantial ingredients in the finishing ration for their fed cattle.  Four different rations are fed, depending on the age and weight of the cattle; energy levels are increased in large part through a higher percentage of corn grain as the cattle get closer to slaughter weight.

The Headquarters Building, situated on a fully-permitted site in a suitable location, consists of a 2,400 square foot office, and a 6,600 square foot shop for maintenance of trucks, farm equipment, and storing high-tech equipment utilized for efficient and scientific feeding of cattle.  

Angus, Hereford and Charolais feeder calves, averaging about 600 pounds, are purchased from a six-state area in the cattle producing Rocky Mountains.  After gain, approximately 38,000 cattle, averaging 1,300 pounds, are shipped annually in Skaar trucks to JBS Meat Packers, the exclusive buyer, in Hyrum, Utah located 180 miles south of the Headquarters.  JBS Swift, owned by a Brazilian family, is recognized as one of the largest multi-national food companies in the world with international export capabilities.  After processing, the total beef yield is approximately 15 million tons annually from JBS Meat Packers.

DuWayne and Justin Skaar are ready to retire, but would be willing to consult for a year or two if the new owner wishes.

CONTACT LISTING BROKER SAM SANDERS - SALT LAKE CITY, UTAH
801.694.2092
 
 

LOCATION and ACCESS

Skaar Livestock & Farming Headquarters is located about 20 miles north of Idaho Falls via Interstate 15 and the Roberts exit.  The Headquarters, on N 3200 E, is about 6 miles from the Interstate via well-maintained paved county roads. The four satellite farms are located within a six-mile radius of the Headquarters.  Access to all of the land parcels is excellent via paved county-maintained roads.

Located in Jefferson County, Lewisville, a small community with a population of approximately 500 people, offers minimal services with the exception of a U.S. Post Office.  About ten miles away, Rigby, the county seat of Jefferson County with a population of about 4,000, offers all of the amenities of a small rural city.  Located about 20 miles from Skaar Headquarters, the larger city of Idaho Falls provides a wide variety of shopping, entertainment and cultural choices.  Idaho Falls Regional Airport (IDA) offers excellent commercial services through Allegiant, Delta and United with direct flights to major hubs including Denver, Salt Lake City and Minneapolis.  
Approximate distances to other cities and attractions are as follows:

Rigby, Idaho  
Idaho Falls, Idaho   
Hyrum, Utah   
Salt Lake City, Utah   
9 Miles
18 Miles
180 Miles
237 Miles

ELEVATION and CLIMATE

Skaar Headquarters sits at an elevation of approximately 4,775 above sea level and is generally level.  The elevations of the four satellite farms do not vary more than 50 feet from the elevation of the Headquarters.

The average annual precipitation is approximately 10".  Average maximum temperatures in June, July and August range from 76ْ to 85ْ F.  In December, January and February average maximum temperatures are between 28ْ and 33ْ F. Summer nights average about 51ْ F and winter average minimum is between 13ْ and 15ْ F.  There are about 205 sunny days throughout the year.  On average, the frost-free growing season in Rigby is about 118 days with the first frost in the fall around September 20th and the last frost around May 25th.

REAL ESTATE TAXES

Property taxes for 2016 were approximately $13,624.00.

UTILITIES and SERVICES

Electric service is provided by Rocky Mountain Power.  Telephone service is provided through Century Link and good cellular service is available through Verizon and AT&T.

Residential water is provided via domestic wells.  Heat for the facilities and homes is propane with the exception of the two-bedroom employee house at the Headquarters which uses a coal-fired furnace.  All of the homes are on individual sewer-septic systems.

FENCES and BOUNDARY LINES

The Sellers hereby make known that there may be variations between the deeded property lines and the location of the existing fence boundary lines on the Property.  The Sellers make no warranties with regard to the location of the fence lines in relationship to the deeded property lines, nor do the Sellers make any warranties or representations with regard to specific acreage within the fenced property lines. 

The Sellers are selling the Property in its “as is-where is” condition which includes the location of the fences as they now exist.  Boundaries shown on any accompanying maps are approximate.  The maps are not to scale and are for visual aid only.  The accuracy of the maps and information portrayed thereon is not guaranteed nor warranted.

MINERAL RIGHTS

The Sellers will convey with the Ranch 100% of whatever mineral, oil, gas, geo-thermal, hydro-carbon and gravel rights they actually own, subject to reservations by previous owners. The Sellers make no representation as to the quantity or quality of any mineral or other sub-surface rights appurtenant to the Property.

WATER RIGHTS

Irrigation Water Stock and Canal Stock

  • 67 shares of Independent Irrigation Company are allocated to Taylor Farm.
  • 238 1/10 shares of Long Island Irrigation Company are also allocated to Taylor Farm.
  • 264 shares of Deer Park Canal Company are allocated to Taylor Farm.  The Deer Park Canal is a carrying canal for Long Island Irrigation Company Water.
  • 93.9 shares of Parks and Lewisville Irrigation Company are allocated to Feedlot Farm and Calf Lot Farm.

Decreed Water Rights

Water Right Nos. 25-234, 25-235, 25-236, 1-10463 and 1-10465 together represent 10 CFS from the Snake River used to irrigate a total of 591.9 acres at the Big 6 Farm and Taylor Farm.  The priority date for these water rights is 6/1/1892.  The period of use is April 1st to October 31st.

In addition, a 16" irrigation water well provides water to the 56.76 acres of cropland on the north side of the Feedlot.  The 147' deep well is identified by Water Right No. 25-4187 and well tag No. 3586.  The priority date of this water right is 6/18/1962.  Since the static level of the well is only 12' deep, a 25-horsepower motor is adequate.

PHYSICAL DESCRIPTION

Skaar Livestock & Farming is comprised of five separate productive tracts of land, each utilized to maximize efficiency and yields.  The units are within a six mile radius of the Headquarters.
Feedlot improvements and associated farm

The Feedlot and associated improvements occupy 125 acres of pens and concrete feed bunkers surrounded by about 170.30 acres of laser-leveled flood-irrigated cropland to the north and the west.

The Feedlot is permitted for 25,000 head of cattle, and is currently feeding about 18,000 head.  Sprinklers are at strategic locations to help keep down dust and make cattle more comfortable during hot summer days.  Three permitted water wells provide consistent water flow throughout the Feedlot without risk of freezing.  All three wells are interconnected with redundancy systems to insure constant flow water even if a well pump malfunctions.

The Feedlot contains about 10,750 feet of concrete bunk line with 8' and 10' concrete aprons off the bunks.

Department of Environmental Quality (DEQ) regulations are followed very closely with meticulous records kept associated with the Feedlot’s waste management plan.  Copies of both the DEQ Feedlot Permit and Waste Management Plan would be made available to qualified buyers upon request; all of which are in place and in good standing, according to the Seller.

With today’s technology the Feedlot Manager can read the amount of feed consumed in an individual pen of cattle and transmit that information via a laptop computer and to the feed trailers which in turn can adjust the volume of the specific ration being fed to an individual pen.  This technology has resulted in increased feed efficiency and decreased waste.  Strict protocols are in place to determine precisely how much feed should be consumed by each animal on a daily basis.

FEED MILL

Two-75 hp motors run the 18" x 36" rollers in the Feral-Ross roller mills utilized to crack the corn and small grains utilized by the Feedlot.  Grain is soaked for 12-hours in overhead bins before being run through the mills.  One mill is set for wheat and the second mill set to crack corn.   The facility is designed that if an operator so desires, an additional mill could be added.  Approximately 650,000 pounds of grain, hay and supplements are pushed through the mill daily.  Once the commodities go through the roller mills, it goes on a drag and then lifted out into the commodity bays.  All commodities are moved with gravity except for the lift out into the commodity bays.

Micro Beef Technologies computerized management system is utilized to precisely control ration ingredients.  Micro Beef Technologies is a cutting-edge, research and development-based innovator of patented computerized management systems for comprehensive individual animal information collection and management decision-making.

The commodity-storage area, which utilizes forced-air ventilation, contains 25,000 bushels of wheat storage and 30,000 bushels of corn storage.  Scales and computer programs in each of the commodity bins closely monitor commodity stores and daily usage amounts.

The 75' x 450' high-moisture corn bunk silo has a blacktop floor, 10' high concrete walls and a plastic cover.
There are two soaker tanks with a capacity of 30 tons, which were installed in 2015, and nine covered concrete commodity bunks.  The enclosed 50' x 80' storage building holds approximately 500 tons of dried distillers grain.

The Processing Barn includes a covered alley, Silencer squeeze chute, ultrasound machine and individual scale under the squeeze chute.  When new cattle arrive at the Feedlot they go through a stringent protocol of vaccinations, de-horning and heifers are ultrasounded for pregnancy.  The emphasis is always to limit the stress on the animal and treat them as humanely and quietly as possible in order to get them on feed more quickly when they reach the feeding pens.
The Load Out Facility is integrated into the working corrals near the Processing Barn and has been designed for ease of moving cattle.  A 60,000-pound electronic livestock scale is certified by the State of Idaho annually.  The deck is rebuilt every five years.

Most of the working corrals, which feed into the Processing Barn and for the Load Out Facility, are steel pipe construction.  The yard near this Facility is well laid out to accommodate multiple tractor-trailer rigs as they load and unload livestock.

HEADQUARTERS IMPROVEMENTS

OFFICE-SHOP BUILDING

The 2,400 square-foot office contains a reception area, several offices, lavatory, and a conference room.   Attached is a 6,000 square-foot mechanics shop for maintenance of trucks and farm equipment, as well as various high-tech equipment utilized for efficient and scientific feeding of the cattle. Three large bay doors allow for easy access of the trucks into the bays which have in-ground pits for undercarriage maintenance.  
The semi-truck scale is conveniently located adjacent to the office allowing for the weight-records and trucking information to easily be recorded from inside the office. This 120,000-pound electronic truck scale with electronic printer is certified every year by the state.

37,000 gallons of diesel fuel is available in three tanks.  Gasoline is provided in one 2,500 gallon tank; and there is a 1,000 gallon propane storage tank.  All of the tanks are above ground.  

An insulated 40' x 150' storage building is used to store heavy equipment.

The 185' x 70' Indoor Roping Arena has electricity and water.  The well-lit facility has a calf chute and a wash-stall area.

Two homes located on the Feedlot property are utilized for employee housing.  One is a three bedroom 2 bath single story home.  The second is a 2 bedroom 1 bathroom single story home.

FARM LAND

The flood-irrigated land on each of the Farm Units is diked with 100 foot lands.  Solid water rights are associated with each Unit to provide ample water during the growing season.  Crop yields on the Farm Land are approximately 7.5-tons of alfalfa hay per irrigated acre on three cuttings; twenty-two to twenty-four tons per acre of silage grain and twenty-eight to thirty-tons of corn.  This is some of the most productive ground Idaho has to offer!

CALF LOT AND FARM

The Farm is comprised of 142.55 flood-irrigated acres plus the 11.15 acre feed lot.  This loading chute and corral system, constructed of steel pipe, is well designed to efficiently work cattle.  The Calf Lot contains about 1,250 feet of concrete bunk line with 8' and 10' concrete aprons off the bunks.

Calves are held at this lot to ensure they are healthy before moving to the Headquarters Feedlot.  The Calf Lot is six miles east of the Feedlot.

THE BIG SIX FARM

The Big Six is 366.91 flood irrigated acres plus 8.29 acres of improvements located two miles north of the Feedlot.

Improvements
There is a three-bedroom one-bath house as well as a one-bedroom one-bath apartment, both of which are used as employee housing on the Big Six.  A 6" diameter domestic well serves the two homes.  Both homes are on individual septic systems.

Metal Storage Building – This storage facility, with concrete flooring and a roof auger, will hold 1,000 tons of hay or 130,000 bushels of grain.

Grain Bins - Two grain bins with concrete flooring, each hold 1,200 bushels.

Diesel Tank – 10,000 gallon above-ground tank.

Outdoor Roping Arena – Older wood fence with a calf chute.  

Quonset – The 60' x 40' metal building is used for equipment storage.

HUNTER FARM

Hunter Farm is comprised of 95.51 laser-leveled flood-irrigated acres.  Hunter Farm is located about one mile northeast of the Feedlot.

TAYLOR FARM

Taylor Farm is comprised of 171.23 laser-leveled flood-irrigated acres located about 5.5 miles northeast of the Feedlot. 

 

OFFERING PRICE and CONDITIONS

Skaar Livestock & Farming including feedlot, farmland and rolling stock, as described herein, is offered at US $10,000,000 Cash.  The conditions of sale are as follows:

  1. In order to avoid double taxation, the 125 acres where the feedlot and associated improvements are located along with the farm equipment must be transferred to the Buyer as a C-Corp stock sale of Louis Skaar and Sons, Inc.;
  2. The Sellers will allocate 25% of the purchase price to the stock sale;
  3. The farmland and associated improvements and all irrigation company water stock, canal stock and water rights will be transferred via Special Warranty Deed and water stock transfers.  The Sellers will allocate 50% of the purchase price to the farmland and associated improvements;
  4. All wheeled equipment (rolling stock) owned by Skaar Transportation LLC will be transferred to the Buyer via a bulk asset sale.  25% of the purchase price will be allocated to rolling stock.
  5. All offers to purchase or letters of intent must be in writing and accompanied by an earnest money deposit in the amount of $500,000.00 to an escrow account at First American Title Company, Rigby, Idaho;
  6. All Prospective Buyers must demonstrate to the satisfaction of the Seller absolute financial capability to purchase the Skaar Offering prior to scheduling an inspection of the property;
  7. The Seller will provide and pay for a standard owner’s title insurance policy in the amount of 75% of the purchase price, issued by First American Title Company, Rigby, Idaho.  Any endorsements requested by the Buyer or any lender will be at Buyer’s expense.  Title to the real property will be conveyed by a special warranty deed;
  8. Inventory of any personal property will be transferred via a separate Bill of Sale at Closing;
  9. Feed on hand, consumables, cattle and shop equipment are NOT included in the $10,000,000 offering price.
  10. Buyers’ Brokers are welcomed and invited to contact Sam Sanders in our Salt Lake City Office for information regarding Cooperation Policies.

This entire Offering is subject to errors, omissions, prior sale, change or withdrawal without notice and approval of purchase by the Seller. Information regarding land classifications, acreages, carrying capacities, crop yields, potential profits, etc., are intended only as general guidelines and have been obtained from sources deemed reliable; however, accuracy is not warranted or guaranteed by the Seller or Swan Land Company.  Prospective Buyers should verify all information to their sole and complete satisfaction.

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