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Deposits for feeders

1230 Views 15 Replies 8 Participants Last post by  AmericanStand
So some friends have expressed interest in purchasing feeder hogs from me next year. I would raise and feed out, take to butcher. They pay butcher fees. My question is if any of you guys take deposits, and how much you usually take. Also, how do you determine the final price of the hog. Obviously it based on weight, but do you go off current market prices? Do you set the price per pound at the time you take the deposits? I will only be doing one or two extra hogs besides my one. I don't want to rip anyone off or get stuck with a hog I cant eat/sell. Thanks for your advice.
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It is for a very good friend whose company we are very thankful for. If I break even on his hog I will feel good. I have a pen already set up, the fence needs a little reinforcing on one side but I have all fall and winter to get it done. The $100 deposit is within my initial inclination. Thank you two for the advice.
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Haypoint. You have a very valid point in the death of one of the pigs will result in me getting nothing. That is something I had not considered and something I will need to contemplate further how to mitigate that issue.

Here is what I am thinking... $100 deposit gets me the feeder and some of his feed. At time of butcher (roughly 250lbs) I will charge roughly $0.70/lbs. live weight. He pays all butcher fees and catches a ride there with us. I think that should cover all financial costs (no labor). Any thoughts?

Also, would woven wire or welded wire be better to line the pen's fences? I will run hot wire inside of that.
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