An Income Opportunity
By David Coburn, Swine Specialist
Another building season will start soon and last year we had swine units being built as late as December. The building season is best from early spring until late fall for digging pits and pouring concrete. We at CFC are focusing on swine facilities with Sunterra. We have two options for the swine units: 2,400 head units are either a nursery or finisher. We have prepared for your consideration a handout that outlines the program and the options as to operating the facilities and the building procedures. If you would like a handout, please contact me at 605-661-0930 and I will get one sent to you.
What are the main points of the building program?
  • The facility is a 2,400 head nursery or a 2,400 finisher.
  • These facilities are the latest in building technologies that last for over 25 years and keep their value.
  • The building, regardless of which one you build, is with county permit and manure management.
  • The manure from the deep pits is a fertilizer savings opportunity for you, to spread on your land and save the cost of commercial fertilizer, and to build microbial improvement in your soil.
  • This is an EQUITY building program where Sunterra pays yardage every month regardless of the inventory in the unit. This payment is for 12 years and pays off the building loan.
  • You use about 25 acres of land to obtain financing through FCS and then FCS leases the building back to you using a Sunterra contract. At the end of the lease, you pay the residual amount left on the loan and own the building, and the 25 acres are released.
  • The net effect is you get the lease payment as a tax deductible expense and $20,000 per year in fertilizer savings, totaling about $90,000 per year.
  • These facilities with the permits are increasing in value each year. For example, in Iowa, finishing barns with a permit are sold up to 75% of new cost at 18 years.
  • This is the best way in my opinion to get the next generation back on the farm and provide a retirement income opportunity for you.

This program is easy for you to get involved with. At no cost to you, CFC can help you with program options, site selection, financing opportunities, and county permitting.

For more information or if you are interested, please call me, David Coburn, CFC Swine Specialist, at 605-661-0930.
Reports Returning
By Phil Madsen, Location Manager, Salem
With this week’s news of President Trump and Chinese President Xi unlikely to meet before the March trade deadline, it essentially puts the nail in the coffin that a trade deal will not be done anytime soon. The focus will be on Friday’s long anticipated Jan/Feb WASDE Report(s).
The news of a non-meeting between the two mentioned leaders may give short sellers in the soybean market more confidence to take a position in the short-term without fear of a major rally due to a trade deal announcement. All eyes will be on the production estimates coming out of South America. While it is known there are ample soybean supplies in the U.S., the focus will be figuring what worldwide demand may need to come from the U.S. if short supply materializes south of the equator.

The corn market has, for the most part, been in a futures trading range of $3.65-$3.85 for months. With basis staying firm, significantly higher cash prices vs. a year ago have kept corn moving to meet a strong demand. Analysts are expecting production estimates and stocks on the corn side to be reduced on this WASDE report, so while it may take a larger than expected shock to break the corn market higher, ranges tend to be broken on report days. Make sure to have resting target orders in on all grains in case the market does indeed break out.