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Eastern Iowa | While it seems there is a never ending supply of people willing to sign up for them, feeder contracts around here won't even pay for a building, repairs, and its note in 10 years, I was told recently. That leaves nothing for you to do the work. Supplier gets a new barn and free labor for ten years, in trade for the manure. If net margins are $1/hd, be assured the integrators are making quite a bit more by pushing all these costs off on their willing volunteers.
Commit to owning sows in a commercial farm to recapture economies of size and scale in generating a quality weaned pig at the lowest possible cost, and put them in a three or four barn flow so that you can market consistently throughout the year. This allows you to cash flow nearly weekly and feed needs are consistent over time. No guessing on whether you are selling pigs or buying feed at the wrong time, you are doing it all the time and hitting all the markets, high and low.
Then sit back and watch you bank account fluctuate wildly... | |
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