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Hog bulding logic
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Al Swearingen
Posted 12/26/2012 08:30 (#2776442 - in reply to #2776406)
Subject: Re: Hog bulding logic


North Central Iowa
GangGreen - 12/26/2012 08:14

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.



You are forgetting about the equity you have in the building at the end of 10 years. I have seen 15 year old barns sell for what they cost when they were new.
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