|
SW MN Fulda | In the beginning, i'm not going to be owning the pigs, just contract feeding...In time, i would like to start owning them though.
This is the last turn i'm taking care of in these barns as the pig owners son in law came home and is going to be taking my spot. I do like working with pigs though and after being in the liquid feed side of it, i like it more yet and can see why they are making money with them. No dust in the barn is a huge plus vs dry barns. The manure though is hard not to look at as a great thing especially with those numbers. I am a firm believer that manure will beat commercial fertilizer any day...
My concern is on how much rent i should be getting over and above my expenses and what is the norm? My barn payment for the first 10 years is going to be $33.50/hd and then i figured about $11/ hd for operating: $3.75/hd electric, $1.25/hd propane, $1.25/hd insurance, $1.82/hd taxes, $2/hd repairs, and $.50/hd phone/internet...
The scale will on avg be able to make the pig owner an extra $20,000/ turn by narrowing the marketing weight window.... currently the barns he feeds at do not have a scale but it would be his preference and would save on the load out/sort labor. Although the scales are adding an extra $15,000 to the barn after figuring the difference between non scale barns and adding more gates and feeders and such so I should be getting compensated for that I would think. Going the 10' pit adds about $30,000 extra over the standard 8' pit but an 8' pit barely even makes it to spring and fall so i would rather put that extra money into it to give a little time to be able to apply at the right times/weather conditions.
The guy putting in the pigs is also wanting to buy some manure as well and would pay for that upfront in the yardage payments... good way to make sure the barn payments are going to be getting made and can operate in my opinion. but its a lot of money going into the project so i want to make as best decision as i can, but its either going to have to be in hogs or cattle as there is no other good way to expand and grow my operation along with support my family of 4. an in town job is out of the question.
Thanks for everything so far. Looking forward to more | |
|