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Central Indiana | I struggle with the future of hogs daily. I have a small confinement farrow to finish, 120 sows. Paid off my barns in 2012, always thought I would build again when I got rid of that note. But even with my barns paid for, and in good condition, the past 4 years don't look very good, and the past 15 are very lean on average. I still have decent markets, for the time being. The gestation crate issue, manure management issues, antibiotic issues, all discourage me as well.
But I don't understand contracting logic at all. Many times I have heard it stated that until the barn is paid for you don't have any return except the manure. Really? Your willing to be paid in Hog """". I realize the benifiets of manure for crops, but it is a by-product,l and a difficult one at that. I think farmers get the shaft in contract barns. The farmer gets to provide the collateral, pay for the repairs, stand the debt, do the work, handle the manure, and probally shoulders some, though not all of the production risk through performace standards. And you are essentialy co-signing, or borrowing money in your name for a corporation who's contract is no better than the next check he writes. My borrowing ability is too precious to be loaned out to someone else. | |
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Hog bulding logic
