Colin Johnson - Opportunities Abound: A Toolbox for Beginning Farmers
•Download as PPT, PDF•
1 like•70 views
Opportunities Abound: A Toolbox for Beginning Farmers - Colin Johnson, Iowa State University, from the 2017 Iowa Pork Congress, January 25-26, Des Moines, IA, USA. More presentations at http://www.swinecast.com/2017-iowa-pork-congress
Recommended
More Related Content
What's hot
What's hot (20)
Similar to Colin Johnson - Opportunities Abound: A Toolbox for Beginning Farmers
Similar to Colin Johnson - Opportunities Abound: A Toolbox for Beginning Farmers (20)
More from John Blue
More from John Blue (20)
Recently uploaded
Recently uploaded (20)
Colin Johnson - Opportunities Abound: A Toolbox for Beginning Farmers
- 1. IOWA STATE UNIVERSITY Iowa Pork Industry Center Opportunities in the Iowa Pork Industry Colin Johnson & William Edwards Iowa Pork Industry Center at Iowa State University colinj@iastate.edu
- 2. IOWA STATE UNIVERSITY Iowa Pork Industry Center Mission of the Iowa Pork Industry Center (IPIC) “To promote efficient pork production technologies in Iowa, maintain Iowa’s pork industry leadership and strengthen rural development efforts”
- 3. IOWA STATE UNIVERSITY Iowa Pork Industry Center So Why Pork Production in Iowa? Tradition of a successful swine industry Abundant, high quality grain production Sustainability: manure as valued nutrient resource Harvesting and processing industry Iowa State University and Extension IPPA and NPB and NPPC Low cost pork production capability
- 4. IOWA STATE UNIVERSITY Iowa Pork Industry Center What are the Opportunities? What is Your Forte? Commodity production Niche based production Breed to wean Breed to finish Grow - finish Wean to finish Nursery Contract grower Sow co-op Integrator Allied business feed / nutrition health / veterinary genetics packing / processing finance / accounting legal / HR / PR environmental construction / engineering management education … … …
- 5. IOWA STATE UNIVERSITY Iowa Pork Industry Center Farrowing- The Facts Shortage of weaned pigs in Iowa 17% of US breeding herd (1 million) 32% of US market hogs (21 million) Requires highly skilled management An economic generator
- 6. IOWA STATE UNIVERSITY Iowa Pork Industry Center Farrowing- Keys to Financial Success Top performance reproductive efficiency (>30 p/s/y ?) full-value weaned pigs Top health closed herd and biosecurity Top market price and assurance (futures based) Labor efficiency mechanize and train
- 7. IOWA STATE UNIVERSITY Iowa Pork Industry Center
- 8. IOWA STATE UNIVERSITY Iowa Pork Industry Center Finishing- The Facts Capitalizes on feed availability Capitalizes on slaughter capacity Works well for crop farmer of part-time farmer Flexibility in risk and ownership structure purchase (Profit Tracker.XLS) custom grower (contract production) - numerous arrangements available
- 9. IOWA STATE UNIVERSITY Iowa Pork Industry Center Finishing- Keys to Financial Success Top health require stable source from a known sow herd Manure nutrients capture valuable nutrients for own crops [$10-15/space] Diversify own the crops and utilize available time Top market use risk protection tools Low cost ration balancing DDGS and alternative feedstuffs Watch cost infrastructure Facility, penning, utilities, technology, labor, fees
- 10. IOWA STATE UNIVERSITY Iowa Pork Industry Center
- 11. IOWA STATE UNIVERSITY Iowa Pork Industry Center Attribute-based ‘Niche Markets’- Facts Based on: production system (pasture reared) eating quality (Berkshire, Duroc) health perceptions (no subtherapeutics) diet (organic) a story (family farm) heritage breed Demand in this area grows as the affluence of the consumer grows
- 12. IOWA STATE UNIVERSITY Iowa Pork Industry Center Niche Markets- Keys to Financial Success Have a Market Location, quantity, products, premium Know your market Stability, culture Know your costs Production (feed, labor) Marketing (transportation, morbidity)
- 13. IOWA STATE UNIVERSITY Iowa Pork Industry Center Niche Markets- Keys to Financial Success Production Issues: Mating system know breeding window; batch farrow Pig flow wean, move and market in batches (all-in/all-out) Health know disease presence; practice biosecurity Genetics obtain ‘good breeders’; structure, growth, meat quality Substandards Reduce ‘fallout’ or substandard/cull pigs
- 14. IOWA STATE UNIVERSITY Iowa Pork Industry Center Contract Finishing
- 15. IOWA STATE UNIVERSITY Iowa Pork Industry Center Contract Finishing- The Facts Numerous source options available Sow farm co-ops Local independent producers Grain co-ops Integrators Wean-to-finish, nursery, or finish Constructions costs are high Tunnel vent or natural vent Manure is of great value (net >$5/pig)
- 16. IOWA STATE UNIVERSITY Iowa Pork Industry Center Contract Finishing- The Arrangements Basic Contract Own the barn; provide labor, utilities, maintenance; receive payment & manure Owner Contract Own the barn; provide utilities & maintenance; receive rent & manure; pig owner manages pigs Sale / Manure Contract Sell the land; investor builds; you receive manure Sale / Management & Manure Contract Sell the land; investor builds; you receive manure & caretaker wages
- 17. IOWA STATE UNIVERSITY Iowa Pork Industry Center Know your contractor/ supplier of pigs Financial history Herd health history Trust Employee retention / job satisfaction Accessibility of regional fieldman & vet service Pigflow & space allotment Other: genetics, feed, MMP assistance, lending assistance, long term plans Manure Value Contract Finishing- Considerations
- 18. IOWA STATE UNIVERSITY Iowa Pork Industry Center Contract Finishing- Considerations Understand your contract Read through it whether written or verbal Length of contract & terms Payment terms Repair & maintenance
- 19. IOWA STATE UNIVERSITY Iowa Pork Industry Center Contract Finishing- Considerations Know what is required of you Daily care Variable costs/Utilities; LP gas Vaccinations/treatments Rendering Insurance Feed ordering Biosecurity; powerwashing; loading, unloading Liability for deathloss or pig shortage Manure management
- 20. IOWA STATE UNIVERSITY Iowa Pork Industry Center Contract Finishing- Cashflow
- 21. IOWA STATE UNIVERSITY Iowa Pork Industry Center Contract Finishing- Cashflow example 2480 hd wean to finish on ~3 acres $260-300/space construction cost 4.75% interest; $20,000 down Utilities: $13,000/yr Tax & Ins.: $5500/yr Upkeep, misc: $4000/yr Own labor Paid $42/space ($104,160/yr)
- 22. IOWA STATE UNIVERSITY Iowa Pork Industry Center “What does the cashflow look like” #1) w/ no manure valued #2) w/ manure valued
- 23. IOWA STATE UNIVERSITY Iowa Pork Industry Center Swine finishing model 2400 pig barn, 45 – 275 lb 2.4 turns = 5760 pigs/ year (140 days / group) Consume 1500 t feed/ yr Corn production from ~300 ac; soybeans from ~ 200 ac Manure value 18 lb N, 10 lb P2O5, 10 lb K2O / space /yr =21.6 t /yr N, 12 t P, 12 t K ($29,000) Meets nutrient needs for 240 ac corn /yr 24 pigs will fertilize 1 acre of corn producing >170 bu
- 24. IOWA STATE UNIVERSITY Iowa Pork Industry Center Match the nutrient needs of the land with the manure production of the farm 480-520 acres on corn/soy rotation* Consider the impact of the farm on the rural infrastructure Transportation over public roads Local supplies, utilities & taxes Consider the profit potential to create rural jobs ~ 0.5 FTE wage* Implications for new farmer development Site the farm using objective assessments of environmental exposure *2400 hd Swine finishing model
- 25. IOWA STATE UNIVERSITY Iowa Pork Industry Center 2400 hd Growth in commodity production via “Low Density Expansion”
- 26. IOWA STATE UNIVERSITY Iowa Pork Industry Center
- 27. IOWA STATE UNIVERSITY Iowa Pork Industry Center Characteristics of a good farm site Biosecurity Right distance and direction from other pigs Controlled wheel and foot traffic External and internal controls Accessible, reliable and affordable utilities Socially appealing Clean, well-kept and mowed site VEB’s [Vegetative Environmental Buffers] (aka, trees, shrubs) Odor control technologies, dust control, wind direction Modern ventilation, feeding and penning equipment Some place you want to work and spend time
Editor's Notes
- So why all the pigs in Iowa?
- Production is made up of a lot of people and a lot of different business and production structures. Allied industry: research, service, sales, supply, education
- Each phase of production requires some unique skills. While sow farms are much fewer in number they are much more dynamic operation and a great economic generator in the community. Import half our feeder pigs.
- 2499 hd wn-fin = $28,874 NPK less $16,000 app cost, nets $12,875 (57-30-30 /1000 gal x 800,000 gal) .8gal/pig/day
- Crate-free, free-range, GMO free diet, high omega, herbal additives, acorns,. Companies (corporate) are in these niches too now
- Costs will be higher so must capture a stable premium. Don’t flood the market and work very hard at retaining the market and further value-added business.
- Items that aren’t necessarily spelled out in the paper contract; issue of character, stability, “partnership”
- What’s not here: mortality management; labor wages, VEB’s, site maintenance (mowing & snow removal, …)
- Ballpark numbers
- A 2400 hd site fits a section of land very nicely and we’ll talk about that later [the balance of manure nutrients, labor and investment]
- What brings value to a farm and makes it a good site. Other factors would be rendering management (out of sight, clean, timely) and sufficient gravel (not muddy and big/accessible for feed delivery and pig trucks)
- Courtesy of Successful Farming. Lots of commentary to add on true ownership/management structures, independents vs integrators, Iowa finishing
- Packers are doing very well. That is a good thing for the industry. And it is why we are seeing new packing plants being built. There is stability & longevity in Iowa production.
- There’s profit in packing and the sign of increased shackle space indicates we can expand the industry centered in the Midwest when combined with exports (next slide)
- Exports: here’s where the hope in the future lies
- China is a hungry consumer and we have great opportunity to capture more of China.
- Met with opposition in Mason City, the Wright County site is an excellent choice. The plant will be located 5 miles south of Eagle Grove on Hwy. 17. This is at the center of hog production in Iowa – with 6.5 million hogs marketed within 250 miles of the facility. Daily 52 livestock trucks and about the same numbers refrigerated trucks. Partnering with Eagle Grove on a new wastewater treatment facility.
- New FDA guidelines effective Jan 1, 2017 place VFD (Veterinary Feed Directive ) requirements [aka, like prescriptions] on antibiotics of human importance. Also, the use of antibiotics at subtherapeutic levels for “growth promotion and feed efficiency” are being removed from the label. Improvements in all of the above (housing, nutrition, health, management) minimize adverse effects of stress. These are areas of focus in improving health and productivity with decreased dependency on antibiotics.
- Where is our industry going and what do we need to focus on.