First Half Financials: 2014

7/2/2014

I'm going to do two financial updates this year instead of doing them quarterly, as there wasn't a lot to report on back in April. I'm also using a slightly different format, as I've been trying out some new financial software (it's called Wave ,and I quite like it so far.) Instead of tracking everything in Excel, I can rely on the software to make reports for me. So, instead of making my own graphs, I just took a screen shot of part of my overview page.

The information from 2013 I've already talked about. The rest is stuff from this year, and it's pretty simple to understand. All our income has come from the 9.5 deposits we've sold thus far. 80% of our expenses are feed (getting a grain bin has helped cut down on these expenses considerably) and we're almost at our goal of having the deposits pay for the feed for the growing pigs. The rest of our expenses come from getting two new packages of bees, fuel, tools and small things like a new float valve for a pig waterer, and some misc stuff like---interest (yes, I took out a credit card this year to help get us through the lean times. I've got about a $500 balance on it right now, and need to get till mid September before the main pork income comes rolling in. Luckily, the feed bin is more than half full.

We're on target to break even this year, but we're still thinking about what we might want to invest in for 2014. I think we're set on expanding the garlic production to about a 1/4 acre. We'll need about 250 lbs of garlic for that, and we will probably have about 20 lbs from our own seed stock. Seed garlic can cost $10 or more per pound for certified organic, so it's going to be a bit of a hit. Other ideas include the rabbit expansion I detailed in a previous post. That would require about $1000 in startup costs. We've also thought about buying day old steers and raising them over the winter for sale in fall of 2015. I'd like to use calf hutches, but those are probably going to run me at least $250 a piece. Another idea is to do heritage turkeys again next year and make use of the mobile slaughter truck. We're keeping one gilt back this year and will have 3-4 sows for next year (one might end up getting culled). I'm sure I'll be updating these ideas on the blog as we move into the next few months!

12 Comments

Andrew Siemer link

7/2/2014 11:30:33 am

Just curious. Have you looked at substituting your feed costs with either fodder (http://www.leanpub.com/fodder) or spent grain (from a local brewery)?

Jeff

7/2/2014 02:05:05 pm

I've blogged about this before, but the short of it is that (1). I'm not convinced that sprouting systems pay off economically and (2) there is a market for spent grain in the area where I live and it's not easy to get it free, which is the only way it is worth getting.

bruce king link

7/2/2014 07:16:48 pm

Fodder sure is popular, but I am completely skeptical about it as a feed. To me, the basic math is 5lbs of wheat plus 245 pounds of water is not 250lbs of feed. Sorry.

The spent grain thing can be part of a diet, but its not a complete ration, and doesn't have enough calories or protein to be a primary component of pig feed. As a supplement or mixed in with other stuff sure.

I picked up 6-10 tons of it a week for 3 years, and it was a lot of work. Measuring time, truck maint/insurance/fuel and other costs (containers, time spend feeding, etc) when i got it for free it was about a wash with just buying and having commercial feed delivered.

The same is true for other free foods. If you cost out all of the items, it's basically about the same to purchase feed as it is to collect recycled food. I'm talking about day-old bread, produce, dairy, whatever. I've done it all.

Andrew Siemer link

7/3/2014 12:16:38 am

I too am somewhat skeptical about fodder from a dietary point of view. That is the reason I am growing samples of all sorts of different seeds and having them each tested for their nutritional make up. I am interested to see which seed has more energy vs protein vs macro/micro nutrients...etc. Depending on the critter you are feeding...there is something to be said about the lignin content of dry old hay...or even fresh hay over 7 days old. Regardless of the dry matter present in the food available...it just isn't as consumable the higher the lignin content.

Agree that spent grain can't be the only input. My piggers are all pasture raised so they get free access to what ever...plus spent grain...plus fodder...and green house surplus.

Jeff

7/3/2014 01:36:23 am

As Bruce hinted at, the water content of the fodder (or the spent grain) is a major issue. You don't want to just look at the weight of the feed, as water can make up 80% or more of the weight of many feeds. I would urge you to look at the energy content of both the seed you are sprouting and the finished product to see how much energy was lost or gained in the process.

Andrew Siemer link

7/3/2014 01:49:16 am

In this case I am having the research done at Texas A&M labs. The samples are dried out prior to being processed. So it is entirely about looking at non-water weight. And while I agree that there is likely more energy in the seed form there is likely a more complete diet in the sprouted form.

In looking at nature I can't recall the last time I saw a horse wander around eating seeds and skipping the grasses. For pigs on the other hand...they are opportunity driven. Nuts, seed, grass, etc.

My primary interest is around forming the appropriate diet for each animal. I know going into this that while fodder is a climate neutral feed which will help many small farmers survive in lean times...it isn't the whole picture. An appropriate mixture of fodder (what an animal would eat in their natural habitat) plus N supplemental feed is likely the right thing. Rabbits will eat fodder plus roughage (same with horses). Chickens can do fodder plus some much higher protein source like fish meal, liver, etc. (or other chickens without that added protein source). Etc.

Fun chatting with you!

Jeff

7/3/2014 02:25:21 am

I'm curious why you think fodder is "climate neutral." That's a loaded term. Are you suggesting it's carbon neutral? Are you taking into account the water and energy requirements of the system?

I try to keep an open mind while remaining skeptical (if that makes any sense). It's the way I've been trained as a scientist. Consider that while hay and silage might have a large amount of lignin and other non-digestible carbohydrates, it is also fairly cheap to produce, is produced during the summer, relies on free solar energy to grow and dry, and is a good feed for horses, rabbits, etc. With horses, for instance, you don't want to give them too much rich feed for fear of foundering.

Your challenge is to convince me (and other farmers) that a fodder system is (1) better than hay/silage in specific situations, both from a nutritional as well as a labor, energy, and water standpoint and (2) that a fodder system is better than just grinding the seed and feeding it directly to something like a pig or chicken.

Andrew Siemer link

7/3/2014 06:02:50 am

Having fun with this conversation...given that you are having it with an open mind!

(1) climate neutral - I mean that you can grow fodder to some degree (its near idiot proof) in your garage, laundry room, etc. Most seeds will grow in a variable range of temperatures. However, since it can be grown vertically, you can easily build a small insulated space with a very small AC attached to it or harvest some AC from your home into this well insulated room. This allows for people living in places that get really hot or really cold...or are going through a drought that won't water their traditional fields of hay...to get by.

If you are really inclined to reduce the rates of your feed cost you can easily invest in a "fodder system" that is commercially produced. However, you could just as easily build a small storage shed, insulate it, hook it to your well, and add a solar panel - and grow large volumes of fodder year round. It is especially helpful to have a grain mill around you to take bulk deliveries of seeds.

In the "I don't know what I am doing scenario" you can easily convert 1lb of seed (depending on seed type) into 5lbs of feed. In a heavily optimized scenario you can go from 1lb of (the same) seed to 10lbs or feed. Quality, DM, etc. as a different topic.

(2) better nutrition, labor, energy, water: I am doing research figure out the nutrition value! I will have that answer soon. I will comment that no animal in nature cuts grass, lets it dry, and bails it prior to eating it! For labor, there is a daily dance that must be done to keep your fodder going. A great kid chore. Where as hay is a cut it, fluff it, bail it, stack it, operation. Agree there. Energy can be easily wired to the sun with a solar panel. You just need a pump to disperse water to the system. No light is required. You might need to run an AC now and then. Or potentially a heater given your scenario. All things easily done through solar/wind energy. Having a water tower and a well can negate the need for a pump. If you have a well then the cost of the water is not really there. I will say that the flood and drain idea of fodder could be wasteful if you put it to your septic. But I have a garden outside of my fodder so that I don't waste it. I get two uses with a sump after the fodder room that I draw on for a simple garden. The more fodder...the more water you will need to find a 2nd use for. Most farms won't have an issue with this...can even go the animals.

(3) Fodder vs. seed: The problem with this statement can be quickly answered with it all comes down to dietary need. They need X energy, Y protein, ABC nutrients, etc. A diet can be formed with all sorts of things. And while seeds are generally high in energy...they aren't high in all the other bits. They may have some fat. They may have some protein. I am intrigued by this question though. I will add the raw seeds to research as it is interesting. However, 10lbs of seed will cost quite a bit more than 10lbs of feed. Will animals eat 10lbs of seed...vs 10lbs of lush greens/root mass. Does the seed cover the dietary need? In the case of chickens...perhaps. But I don't think that would work for the horse/goat/rabbit/alpaca/etc. diet. But I will see in short time!

George

7/3/2014 02:54:21 am

Regarding the garlic idea.. do you have a good place to dry/hang/cure/store a 1/4 ac ? I usually do a 75x50 plot and it takes up the entire 2 car garage to hang....

I too am skeptical about fodder. I've been reading some on the subject, and while it is an adequate supplement to hay etc, it cannot be a replacement. There is a net energy loss during the first couple weeks of germination, not to mention the high water content. I think it is fine for small scale back yard folks, feeding rabbits, poultry etc, but those fodder systems designed for "large scale" production are very costly, require electricity, water, labor, all of which cost more money. If the power goes out, then what? Live in a humid area, you need to de-humidify the air or it all molds up....

I looked @ Farmtek's systems and a few other places and it is easy to spend 4-5k on a set up, plus extra costs. Considering high quality baleage is $225/Ton around here, and even cheaper for dry hay.... I can buy a lot of hay for 5k....

Jeff

7/3/2014 03:36:51 am

We have a very large barn with a huge hay loft. One of the reasons I'm keen on garlic is because we have all that unused space. Other than storing square bales of hay, I can't think of a better use for it. I could probably grow a full acre of garlic and still have room in the loft if I get creative vertically.

Andrew Siemer link

7/3/2014 06:07:37 am

I agree that a big commercial fodder system can be spendy! But you could just as easily build a storage room and turn that into a system. They aren't that hard to get going. It just hydroponics for micro greens!

Living in Texas has shown me how drought can tinker with hay prices. Having many animals on my farm I am always interested in looking for ways to get around nature and still provide quality feed without breaking the bank.

Having a small simple fodder system on stand by can certainly help small farmers get through hot/cold times when hay is not cheap...or not available. I know that we were recently having to truck hay in from other states. And while that one time cost may be cheaper than the initial cost of a system...it certainly is cheaper in the long run. Especially if you take advantage of solar power and well water. A local seed source would be required...

George

7/4/2014 09:58:58 am

I just am not convinced yet that fodder is nothing more than water... IIRC you had a kickstarter campaign funded didn't you Andrew? I am awaiting the book :)

If I have to build a room, even a storage room larger enough to feed 70 head of cattle, the system, the A/C / dehumidifiers, fans, seed, labor etc... I can also purchase a decent round baler for 9k that will make me 10k bales or more with no real problems....if I do my math right....? That's 2M tons of dry matter at 400lbs per bale... What are my costs for the same amount of dry matter / lignins etc that fodder is acting as a replacement for? And I'm still talking about small farms here.... Farm here is 165 acres with only 32 cows + calf, and 25-35 steer/heifers. We feed 600 or so round bales a year.

First Half Financials: 2014

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