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.