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SW MN - mt. lake/windom | Sodbuster, I'd agree with you. There is a better AROI avg. in lean hogs than real estate. I figure a barn will return 8.5-9.5% , lean hogs will average around 12-16% With the better return comes more risk. I always feel more confident when my investment is controlled or influenced by me. I would recommend that you start with contracted source of pigs and develop a marketing program (most likely including hedges AND cash sales.) Many packers will want to see constant flows ( x loads per week), or ownership in sows, or long term past history. You may benifit from working with a broker that markets consistancy to packers, they will take there small margin for there servicies. Make sure you can dedicate time to managnent of hogs, not in the barn but at the office. If you do own the hogs, may consider 2 -1200 hd barns vs. a 2400 hd. I would expect initial cost to be 10-15% higher but may easily be justified in 1-3 years with balanced pig flow, health risk reduction (#'s), balance labor demand, and more. Thats my advise, go for it and good luck. | |
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Hog bulding logic
