AMES, Iowa -- As the price of corn rises, so has the cost of producing pork. Because of the uncertainty in today’s fluctuating market conditions, young farmers have been asking themselves if entering the pig industry now is even advisable. Iowa Pork Industry Center (IPIC) program coordinator Colin Johnson said such a move can be financially sound, as long as potential participants keep some important things in mind.
“My suggestion for someone starting out is find someone else to share the risk,” Johnson said. “Two possibilities involve partnering with an existing producer on ownership and management, and partnering with a pig supplier to produce on contract.”
The price of corn and ethanol has become a key issue lately, leading to some tough economic choices, Johnson said.
“Ethanol and increased mandates for it certainly make it tough, quite tough. But there will be a balance … someday,” he said. “In the meantime, we’re going to have to rely on improved seed genetics, and fertilizer, chemical and tillage management to reach improved yields while not degrading soil and water resources.”
In the long term, meat commodity prices will adjust and Iowa will remain the most economic and environmentally sustainable location to raise hogs, Johnson said.
“There are several resources available in Iowa and a tremendous network of industry offerings to help producers and future producers make these decisions,” Johnson said. “For example, IPIC and partners Iowa Pork Producers Association, Farm Credit, and Beginning Farm Center at ISU will host ‘Exploring Opportunities: A Conference for Aspiring Pork Producers’ conference on April 1.”
This conference will run from 9:30 a.m. to 3:30 p.m. at the Quality Inn and Suites on east 13th Street in Ames, IA. You can see the agenda on the IPIC Web site www.ipic.iastate.edu/events/ExploringOpportunities.408.pdf There is no cost to attend when preregistered by March 28. Walk-in cost is $20 per person. To preregister, contact IPIC toll-free at (800) 808-7675.
“This conference will explore industry opportunities and where each individual fits into the picture,” Johnson said. “A lot of folks want to know ‘How do I make the transition from employee to partnership to ownership?’ Our presenters will help them understand that process.”
Speakers also will provide information on what is involved in contract production, from the cost of facilities, to labor and payment provisions, to the value of manure from that operation; and the critical need of available financing options. For those interested in learning more about niche production systems and their potential for profit, other speakers will describe niche markets, profit opportunities and advantages and disadvantages of such systems. Finally, a panel of seasoned and experienced producers will provide advice for young and beginning farmers who want to enter the industry, regardless of type of production system. See information on all the presenters on the IPIC Web site www.ipic.iastate.edu/events/Presenter.Information.408.pdf
“This conference will provide timely and accurate information for beginning producers, including sources of information, funding and experience,” Johnson said. “By preregistering early, participants will receive a wealth of knowledge at no cost.”
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