1985 - Volume #9, Issue #3, Page #28[ Sample Stories From This Issue | List of All Stories In This Issue | Print this story | Read this issue]
Hog Farmer Financed By Outside InvestorsJohn and Terri Rohr, Napoleon, Ohio, have financed their hog farm using money from outside investors.
With the help of Henry County extension agent Bob Cole, the Rohrs fashioned a plan that lets them expand their operation while rewarding investors with 10 to 43% return on their money.
Investors invest $2,000 per sow unit and are guaranteed at least a 10% annual return on their investment. The investors choose the breed of sow wanted and all of the pigs in that bunch are identified. Each investor is guaranteed two litters per year and, if a sow dies or fails for some reason, Rohr replaces them. The investor is charged $150 per year for care and maintenance of each sow but gets75% of the profit while Rohr gets 25%.
Besides profits, investors can take investment credits and depreciation. Returns to investors in the form of profits have ranged as high as 43% in part because the Rohrs are active at breed shows, selling many of their animals for breeding. Returns have also been high because the Rohrs have remodeled older buildings and made do with less than modern equipment.
Each investor gets a computerized monthly statement. A year-end report details profits.
"They've already got about 35 investors thanks to reports in local and state publications," Bob Cole told FARM SHOW.
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