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Contract feeding hogs
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fpr2006
Posted 11/15/2017 15:15 (#6366770 - in reply to #6365766)
Subject: RE: Question


SW Minnesota
I think I you know what i was getting at. Basically you are saying I could put $200,000 at risk to gain more return for barns that I paid @670,000 for. I have some problems with that:
1)At least in my case $200,000 would be low because I would want to treat my whole site as one unit. I think I would go over $100/hd before I start selling a turn.
2) Again in my case at least I would have a hard time sourcing 4000 at one time.-
3) Money is money borrowed or your own. I just can't Understand why I would want to risk $400,000-$500,000 to gain Maybe $52,000/ year. I say $52,000 (and I think the actual number is less) because Mikado and Kooiker say they would custom feed if they could get $50/pig space/year.
My figures say that $50 gets new barn at todays construction prices to cash flow like mine did in 1998. Thats paying for them in 10 years and getting no cash value out of them other then the manure.
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