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Contract feeding hogs
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Kooiker
Posted 11/15/2017 16:30 (#6366881 - in reply to #6366770)
Subject: RE: Question



If you have a 4000 hd site and turned it twice/year you would feed 8000 hd/year.

$10/hd = $80,000

$10/pig doesn't get me very excited but if you're buying spot market pigs that is probably a reasonable goal if you are risk adverse, taking more risk allows for the possibility of bigger returns. If you can afford to not be full of pigs all the time there are usually deals to be had on pigs when the hog markets look bleak. Anytime you can buy a pig for under the cost to produce it and have the stomach to wait for the market to move, it will usually give you an opportunity to make good money. High priced pigs that you can't lock in a profit when you buy them are the ones that can really bite you in the butt.


I would build buildings to custom feed in and hire others to take care of them if I could get the buildings built for under $300/space and collect $50/space

$300 spaces and $35-40 custom rates are a very poor return IMHO. There are better places to invest money

Like someone else mentioned, lots of things have a good return 15 yrs from now if you dump 15 yrs of work into paying for it first
Land won't cash flow by itself but if you worked another job for 15 yrs and dump that money into an 80 you'd pay down a lot of principal in 15 yrs


Bankers love them though, they love loaning out lots of low risk low return money





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