Around me the young guys seem to think they’re big time stuff when they get their 800k loan for a hog barn and raise someone else’s hogs.
The other day I asked a young guy thinking about going this route (with no prior livestock experience) if he’d consider going a different route.
I told him his gpa has an old barn with a concrete floor that doesn’t get used much and could comfortably House 50 hogs.
I asked him if he ever considered just buying and owning 50 of his own pigs and feeding them out. This way if he didn’t like it he’d have his feet wet and wouldn’t be tied into a mandatory 20 year commitment and possibly hating it.
He asked what the profit potential per hog could be doing it how I suggested. I told him I wasn’t sure anymore cause times have changed a lot with the big time guys being so big (with custom growers) that they can go straight to the slaughter house and dominate the profit margins.
Anyone have a clue on his profit potential of being this small time of an owner operator grower?
Feeder hog profit
