Hog-profit wreck, phase II: Facing the finances

摘要

PORK producers have a host of financial factors to contemplate as they formulate plans for pricing 2011 inputs and hogs. A short list includes: current cash flows and profit margins; projected future cash flows and profit margins; how much financial recovery from the 2008-2009 hog profit wreck they managed to make in the first nine months of 2010; balance-sheet borrowing capacity. Those factors vary from producer to producer. A specialized feeder-pig finisher is almost certain to face a more challenging conversation with his operating credit-line lender than the diversified crop and livestock farmer with debt-free land and a substantial inventory of 2010-crop corn and soybeans stashed in bins.