r
F
A
R
MANAGEMENT
SWINE CONTRACT
ALTERNATIVES
Roland P. Freund
Farm Management
Agent
In the past decade there has been
a virtual takeover of our swine
industry by integrators or “con
tractors.” However, the size and
scale of their operations has not
made these contractors immune
from the problems of the
marketplace.
Unfortunately, the “contract”
has not protected the farmer from
the difficulties, misfortunes, and
insolvency of any contractor who
has experienced problems. Many
fanners have the potential of being
left with empty buildings and
nobody to stand behind the “con
tract” This is a major problem for
both the farmer and the banker,
who could be left holding the mort
gage for a substantial balance on
EziWeigh 1
Offer all these Basic EziWeigh
features:
1 • Extremely simple to use.
W'*T'V % •Extremely accurate.
* * V • Fine Mode allows a minimum resolution
\ of .2 lbs. for weighing small animals and
4 _ - \ other items.
J • Autozero insures that any accumulation
mud or manure on the platform of crate
‘ v is zeroed out.
• Guaranteed feet accurate weighing.
• Hold key retains the displayed weight after the animal has
stepped off the platform/crate.
• Fully upgradeable.
EziFeet
The revolutionary new EziFeet are lighter to carry, easier
to install and tougher thasn conventional bars for platform
and crate waghmg.
• 1000 lbs. total capacity; 7501 be. live weight capacity.
• Adjusts to all platform/crate dimensions up to a maximum
of 8' x 40”
• Shifting bolt positions allows the platform/crate to be
mounted at the most convenient haght.
• Totally water resistant B CjHfnt
• Housing made from
Incredibly strong n
composite - light, tough
and non-rusting.
Model 60
FBA Maufactured Farrowing Crates
• Bowed bar
adjustable side
rails
• Anti-crush rur
guard on real
door
■ Large, efficiei
stainless steel
feeder has no
sharp edges.
• 7/8” sold cons
M Um of Parts la Stock For Year
Poultry amt Hag Needs
FARMER ROY AGr
UHnt
Service
410 East Lincoln Avenue, Myerstown, PA 17067
717-866-7565 • 1-800-845-3374
Swine it its
7-8
the facilities.
What alternatives do farmers
have when they lose their contract?
1. Find another contractor. If
other contractors are looking for
more producers, it may be possible
to join that organization. But they
are likely to be very selective in
whom they sign on. So it will prob
ably be necessary to have clean
and functional facilities, and if
possible, a good previous produc
tion record to have much chance of
being chosen.
2. Go back to being an indepen
dent producer. This will probably
require substantial operating capi
tal. Bankers may be unwilling, in
the light of the industry outlook, to
lend more money. But a business
plan that is based on past docu
mented performance and realistic
assumptions could be convincing
to a lender, providing it projects a
healthy cash flow and some
profitability.
3. Form an association of pro-
Special Pricing On Farrowing Crates
Model 70
Round Bottom Feeder
Large, stainless steel round
bottom sow feeder. Has no
sharp edges!
$3B each
am W?oo
SERIES
AtAICULTUSAL WEIGHING SYSTEMS
What Is A Tru-Test Weighing System?
The System consists of two Loadbars an an
Indicator. The Loadbars sense the weight
and can be used beneath a platform, crate or
50 Rebate Directly From
Manufacturer With The Purchase
Of Any Of These Tru-Test Scales.
This design greatly reduces the sow’s ability to crush piglets!
■ Swing-side easily
adjusts to size of sow
• Large, efficient,
stainless steel feeder
has no sharp edges.
• Front & Rear Gates
swing both right & left.
• Pig-Saver bar
decreases death rate
of piglets!
$175 painted $199 galvanized
(Feeder sold separately)
Square Bottom Feeder
Large, stainless steel round
bottom sow feeder. Has no
sharp edges!
$33 each
ducen. If all the producers laid off
by a contractor were to organize
themselves into a marketing and
buying organization, they would
have sufficient clout in the mark
etplace to make their operations
more profitable than they would be
as independent operators. This
would require trust, cooperation,
and strong and effective manage
ment and leadership of the farmers
involved.
4. Find alternative use for the
facility. Single-purpose structures
are not easily modified for other
livestock applications. It is prob
ably impossible to get them suffi
ciently manure- and odor-free for
use as commercial storage, etc.
5. Liquidate the operation. Sell
ing out may be the only option for
some farmers in the fight of the
swine industry outlook. It is better
to sell out while there is still some
equity to recover than to continue
with operating losses until bank
ruptcy is forced upon the opera
tion. Unfortunately, swine budd
ings generally do not enhance the
marketability of real estate in
southcentral Pennsylvania.
If you wish to evaluate the
financial impact of alternatives
that you might be considering,
contact your extension office and
ask for your farm management
agent.
We cannot do anything about
squeeze chute for
'ighing hogs,
deer, exotics
variety of
ick. The
us are
;ted to the
w by cables,
> weight
teasured by
le loadcells
sent to the
idicator’s
fisplay. j
Hmi-si Mm thra Frl 7 - 8
Sat 7>30 ■ 12 Nom
Check Oar
Warehouse
Prices
the turmoil in the industry, but we
can help you to find a solution that
should be most beneficial for you
in the long run.
Years ago, it-was possible to
rely upon the cycles in the mark
etplace to turn around and restore
profitability to the swine business.
That came about because a whole
bunch of small producers cut back
or dropped out of production in
times of low price.
When the market is dominated
by large operations which do not
cut back in times of depressed
prices, integrators try to hang onto
their market share until they are
Cooperative Farmers’
SCRANTON (Lackawanna
Co.) —The Cooperative Farmers’
Market will open on July 12 here
on Albright Avenue.
The market, open every- Mon
day, Wednesday, and Friday from
noon until 7 pan., provides free
parking and a great selection of
produce from area growers. The
See the New
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jOUSSINCER’S
IQUaLITY STOVES
i— . j
2533 Old Phila. Pike, Rt. 340, Smoketown, PA
3 miles east of Lancaster
Tue., Thurs., ft Fri. 10-8;
Wed. ft Sac 10-5
* See our beautiful new Wood & Gas Stoves.
(717)397-7539
carry mm
SUPPLY INC. S
.Qoarryvllfe, PA 17568 . =S
Hour.: WMF7-6Sat.B-12 I UPS shipping j
- ■wm w-wmm-m+ow - aoo-aao-i aya
Lancaster Farming, Saturday, July 8, IMS-Al9
forced right out of business. So
now, the marketplace cannot be
expected to "recover” until one or
more of these “titans” sinks out of
sight, dragging a lot of their far
mers with them.
Unfortunately, we can expect
that the battle will continue to be
fought between the integrators, but
at the cost of lower returns to the
farmers. It might be a long time
before the Northeast region and the
national industry stabilizes, and
even then it is unlikely that the far
mers’ margins will have shown
any great improvement
Market Opens
market will be open from July 12
until Thanksgiving, including
Labor Day.
The market is located off the
Scranton Expressway from the
Providence Road exit onto
Albright Avenue.
For more information, contact
the market at (717) 563-2258.