Well his animals are beefers, not dairy and so the numbers are not as extreme 200$ calf, $2000+ grown,butchered and sold as quarters less costs and his chickens are hatchery layers not expensive breeding stock etc but yes I can see your point. No dog is worth 400k and money can't fix everything. In that situation i suppose I'd be lucky to only lose my dog. Not my house and everything else too.
I don't agree with you that it's fair to expect me to try harder and not his to change his ways of doing things or clean up. No one but us being right next to him would ever know what a disgusting pig he is so he has gotten away with it for 20 yrs. We will never be real farmers on this small chunk of land but we are also not ridiculous city people complaining about farm smells, tractor noise or a rooster crowing at 4am. I'm glad our dogs were good, he didn't shoot, and you're not my neighbour! (Lol) Maybe I don't know anything, I guess I just hope farmers pause before pulling that trigger and only do so as a LAST resort, rights and all.
If my dog comes to his property due to blood and guts spread out everywhere and kills a ranging chicken and ends up shot for it, I won't be the tolerant good neighbour and you can bet he will have his hands full with health inspectors, bylaw enforcement, police, fines and any other wrath we could rain down on him. But that's another thread and going slightly OT.
I understand what you're saying, but here's something else that you probably haven't thought of: stress.
When your dogs chase his livestock, whether or not they catch and/or kill, it, that causes stress. It causes chickens to stop laying, sometimes for weeks. It causes calves to expend energy that they would normally use to make muscle mass, and stress causes poor growth. So you seem to think that your dogs chasing the animals does no real harm, but that's not true.
Here's a concrete example for you: when I was a kid, a neighbor's dogs got in with our dry cows and chased them all over the field. Not a single cow was nipped--but over 50% of them aborted their calves in the next month from stress. That was a terrible financial loss for us.
He did what he's done for years and years until you moved in. He was there first. I assume you looked at your property before you moved? You made a choice to live next to him. He did NOT get the choice to have you as a neighbor. He does not have to change his ways for you.
I also disagree about your thinking something would happen with health inspectors, etc. I don't know where you live, but here, that man is breaking no laws. Agricultural land has different rules. I would look up the laws to see if he's breaking any of them before you assume you could cause him lots of trouble if he shot your dogs. Here, YOU would owe HIM the money for the animals your dogs killed. He would owe you nothing, and no amount of carcasses on his property would matter to the authorities in the slightest. It's his land. Barring zoning laws, he can do what he likes on it. This is very different than in the city, yes. But you chose this.
You want to excuse yourself of your responsibilities because this man is not a good farm manager, and his birds are hatchery birds and his animals are beef cows and not worth that much money so it's less of a big deal...you're messing with his livelihood. And what he does on his property DOES NOT MATTER to what your responsibilities are. Your responsibility is to keep your dog on your property no matter what your neighbor does on his. That's it. There are no excuses here. Put up a fence. We just put in an in-ground radio fence and it cost us less than $400 even after buying the best one out there, extra wire to fence 4 acres, and renting the trenching machine to put it in. You have no excuses.
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