WC IA | Uplander2009 - 9/17/2018 11:27
Want to get your thoughts of expanding a custom hog finishing operation during these low commodity times.
Our operation 3,000+ acre corn, soybean. Custom Finish around 1,000 hogs at any given time. Located in Northern Iowa. Would this be a good time to do this? Not a get rich or anything like that but from an expansion perspective it would be a safer route. Also have ample land base for manure. It would return a very stable income moving forward, and diversify the operation more. Or would you hold off on any expansion at this point.
Thanks
I would be cautious going forward at least until the trade dispute is settled and after that it's a toss up. I have some 10 yr old barns, some 5 yr old barns, and some 2 year old barns, the older barns are the only thing that makes the new ones work. With the nearly doubled construction cost from 10 yrs ago and the rising interest new construction just doesn't pencil out unless a person is paying some cash down. With your acres, the nutrients are to your benefit, no doubt about it. With all that said, I would like to build cpl more barns but I am going to hold off for now because of the trade uncertainty. Good luck in your decision |
Hog Finishing Expansion During Low Commodity Prices
