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Old 12-27-2011, 02:02 PM   #14
Adiamant

Join Date
Oct 2005
Posts
479
Senior Member
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Palani the problem is finding corn that isn't GMO anymore or any other grain that is affordable.
True. The organic guys get around $15 a bushel. I asked one farmer who was buying it and he said Amish from Pennsylvania.

Another local fellow is getting out of the hog business. The last I heard he had around 10,000 hogs on feed. He owned the hogs and would contract with other farmers to grow them. The grower would get $4 up front and $4 when sold and all the feed would be provided. If he raised 1,000 hogs he would make $8,000. In the meantime the owner of the hogs (the one providing all the feed, etc) required $10 profit per hog or else he would not be in business. With $7 corn and $60/cwt hog prices there is no margin to pay these costs so he is looking to sell out. It takes 12 bushel of corn to finish a hog along with salt, mineral, protein. Margins are not favorable to making money.

Also heard of another custom owner like this. He carries a debt load of $30 million but then he raises a lot of pigs.
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