Livestock

Building a Legacy for Generations

The Equity has a rich history serving Central Illinois and Western Indiana’s agriculture community. Since our founding in 1919, The Equity has proactively taken steps to strengthen our members’ agricultural businesses. Swine Production Partnerships are a recent example of this. The partnerships help create a line of income sheltered from market and weather risk, providing diversification for a farming operation.

Top-quality nutritional resources

In addition to our experienced team, The Equity invested in a state-of-the-art feed mill at our Horace, Illinois, location. This new mill, along with the investment made by our production partners, ensures swine production remains a vital part of local communities and keeps future generations involved in farming operations.

The Equity is committed to minimizing our environmental impact and preserving natural resources, as well as helping improve the economies of the rural farming communities we serve.

“My father gave me the opportunity to come back and farm with him, and then passed it on to me. I want to give my sons the same chance and keep our farm going for generations to come.”

— Carl Clark, 3rd Generation Vermilion County Farmer and Equity Swine Production Partner

Why Swine Producer Partnerships?

Opportunities

Pork Industry Growth
U.S. pork exports have grown from just over 1 billion lbs in 2000 to nearly 6 billion lbs today. By 2050, global pork demand will require a 50% production increase.

Packer Expansion
Higher pork demand has led to increased demand for packers for processing. U.S. weekly slaughter capacity grew by roughly 600,000 head/week between 2000 and 2019, according to the USDA.

Feed Mill Expansion
The Equity invested in a new feed mill in Horace, IL. This feed mill increased corn demand in east central Illinois by 6-7 million bushels, which accounts for roughly 40,000 acres.

Swine Facilities Expansion
In order to fulfill the tonnage produced by our feed mill, The Equity is targeting the construction of wean-to-finish production facilities. These facilities receive newly weaned piglets, which are then raised to market weight at 6 months of age. Facilities raise two batches of pigs per year. Our livestock production team works with people and pigs to support the families that begin this partnership with us.

Benefits

Consistent Income and Diversification
Building a contract barn provides diversification and steady cash flow to operations during the ups and downs of the agricultural economy. Since growers don’t own the animals or provide the feed, they are not directly exposed to risk related to commodity price fluctuations.

Long Term Equity Growth
By utilizing long-term financing, farmers leverage a smaller down payment into significant long-term equity as debt is retired through monthly contract payments from the integrator.

Depreciation
Accelerated depreciation for the barn often offsets other farm income, resulting in potential tax benefits.

Transition Plan
Building a contract barn can be advantageous as part of a transition plan to move equity or assets to the next generation. There are different approaches to how this can happen, but some simple options include gifting land for the site or pledging collateral for the loan.

Access to Manure
For many row crop farmers, finishing barns provide a steady and historically inexpensive way to access manure for fertilizer.

Swine Producer Partnership Information Request

The Equity actively seeks partnerships with families, farmers and land investors to raise pigs. If you are interested in becoming a Swine Producer Partner with The Equity, please complete this form and the Director of Livestock Contract Development will contact you.

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