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| Been a few years since I priced buildings, but on a custom contract, it took 12 years to cash flow the barn. Nothing for labor. Basically work for the manure for 12 years. Borrow 500k-1 million so that I can work for free for 12 years? The payoff would come once the building were paid for, but there's no guarantees. What if you don't get paid on a bunch or two, or if your payment rate gets lowered a few bucks/space early on in the contract. I'm not saying someone else shouldn't do it, but I figured there were better investments of time and capital.
I'm not sure that owning the hogs would help a lot. I know Cargill had a program at the time to help with pig ownership. Separate hog/building ownership. If you didn't own the building, would you buy hogs to have them custom fed? If not, then why would you buy hogs just because you are custom feeding for yourself?
Brandon | |
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Hog bulding logic
