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SW WI | I’ve had this conversation several times in the last 5 years....just at hobby/family/ friends size now so doesn’t really effect me. With Oct futures at 56 and Dec at 53....they were lower in 16. I don’t want to make light of the situation and we may not be done going down. I like to work backwards on hog price. Oct will give you roughly $117 gross on a market hog. Dec has $111.
So these are long term actual numbers of mine, that I’ve posted before. Feel free to post your own, although I don’t recall seeing anyone’s.
Feeder pig: $56 @ 40 lb target
Meal $23.20. 145 lbs/ hd @ $320/ ton meal
Mineral $4.74. Roughly 15 lbs/ hd
Meds $2.00. Could be more....doubtful it’s going to be less
Building $14.00. Someone is paying for that building...or maybe just repairs on a paid for building
Electricity/ LP probably little LP on this turn. Electric depends on barn style
Labor....”What’s that?” if you’re an independent
So we’ve got $97 in pretty firm cost without corn....and variables of electricity and labor, no insurance no trucking in here. So if a feeder to finish pig will take 9.25 bu.....that would leave corn at $2.16 to $1.51 bu
And now you know why I was done subsidizing my hogs with cheap corn....I can’t grow corn for $2 or less
Edit: you can cut the price of the feeder pig....but eventually you will lose the supply/ sow farm
Edited by mikado 3/29/2020 19:19
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Smithfield in Sioux falls
