America. | mikado - 1/8/2019 15:01
In your 1st post here you said wtm rates are behind and just plain suck. Then you say your business model is doing extremely well...........
If rates suck, that sounds exactly like me saying we do not get adequately compensated for our time and investment. And as you pointed out, I do think there are better returns with less risk.
Very confusing where you are at on this
That's fair, I'll have to clarify. I feel that in relation to FTM rates per space WTM rates are not on par and just plain suck. I feel that a FTM barn is a better investment that a WTM barn, however both are still very workable. Most my barns are FTM, I have one WTM barn. In the end the return on both barns is the same, minus labor. The WTM barn takes more LP than the FTM naturally, that is where it looses in the end, excluding labor. In regards to labor the WTM barn does take considerably more making for what I feel to be less of a return after all other things considered. From what I have seen is that FTM rates have crept up while WTM rates are relatively flat.
While I feel both are a good investment I believe that in the long run a FTM barn will out perform a WTM barn. Its really not different than your returns with less risk, it all depends on how your business model is structured.
All barns I have are self sustaining and with the savings I get from utilizing manure over commercial fertilizer lowers my corn break even price to about $2.40 per bushel based on 225 BPA. Like I said, my business model is working quite well. |
current contract hog rate
