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Custom wean to finish $ per head space
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pigfarmer82
Posted 2/27/2021 12:36 (#8861626 - in reply to #8861274)
Subject: RE: What’s plan B?


north central Ohio
scmn_06 - 2/27/2021 09:04

What’s plan B if plan A fails? I think we are seeing there is zero guarantees in the contract hog industry. Contracts....yeah good one. Guy walks away and then what? Get a lawyer? Spend money? You’d be better off to invest in getting a law degree and be the lawyer.

Crop side of things no one needs a plan B because there is crop revenue insurance. One can’t fail...no matter what.

I guess you could fill barns yourself....but industry is structured that isn’t possible. Cant get packer spaces. Cant get weaned pigs. Even if you did you’ll probably get PRRS and have a disaster.

Putting up a contract hog barn is exactly the same as installing a wind turbine on your property and expecting electricity company to buy your power. They don’t have to. They are in control. What’s plan B? Use electricity yourself? Yeah good luck with that as it’d be cheaper to buy electricity.

See the parallels?

Guys keep building barns because they don’t know what else to spend money on. Land seems too expensive and doesn’t cash flow like a hog barn. Plus “you get the manure”. That’s kind of like you get to keep the concrete from the massive wind turbine. Wow, what a prize! Farming is in their blood and can’t think outside the box when it comes to financial investments.

Hog industry deserves this. Cheap money, lenders willing to just throw out money. No one ever gets called on their crappy hand.

Comes down to it hog integrators are in control and will dictate what they will pay. They give two bleeps what building costs have done. If they did they’d build barns themselves. if your barn is paid for, you’ll get paid for your labor. If your barn is new, you’ll have a decision to make...take the money after expenses and either pay the barn loan and pay yourself zero and call it sweat equity, or not pay barn loan and pay yourself for labor. I know which one the lender wants.

Gonna be two sectors of Ag going forward. The one that works and produces for China. The second will be the one that develops relationships with US citizens who want food raised a certain way. Like it or not just my opinion.



Crop farming can go well below cost of production too even with insurance. Insurance may may help secure a profit this year but past couple insurance levels weren’t great if you had a loss. From raising farrowing to finishing pigs on our own to being a contract finisher the work load and money have been a great improvement. I do agree the profit margin in the new barns and what integrators are offering aren’t good. Did you have a contract voided for some reason, thar your so negative on them?
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