Get it Built
Before you break ground, consider this advice from a leading agricultural construction company.
Over the past 30 years, the folks at Penfor
Construction have been working flat out,
designing and building a wide range of
production facilities, mainly for dairy, hog
and poultry producers. Based in Blumenort,
Man., Penfor Construction specializes in
turnkey facilities, covering everything from
design through to construction.
Fifteen years ago, a 350-sow farrow-to-finish
operation was considered a good size.
Now, it’s common to house 3,000 or even
6,000 sows. The constant increase in scale
was accompanied by new environmental
and engineering requirements relating to
manure management and biosecurity.
For producers, the increasing scale has brought about a reduction in per-head
building costs. But escalating construction budgets have also made it easier for producers
to make expensive mistakes in how they plan, build and finance new facilities.
For producers with a mind to expand, Penfor partners Reg and Darrell Penner offer
these tips:
1. Determine size first.
In an initial meeting with clients, the first question is often: How many? How many
sows, hogs, cows, broilers or layers did you have in mind?
“Once you know the size, there are some standard industry building costs that can
be used to produce a draft budget quickly,” says Darrell. In the case of a new milking
facility, Penfor quotes in the $7,000 to $10,000 per cow range, depending on the
building’s specifications and the type of milking equipment used.
2. Consult your advisors early on.
By now, you know your 150-cow dairy will cost somewhere between $1 million and
$1.5 million to build and equip. At this stage, the Penners recommend you meet with
your banker, accountant and farm consultant. These professionals can work through
cash flow projections, advise which end of the budget range might be best for your
situation, and help determine how to finance it. Penfor offers a fixed price on the
total project, which should aid in budgeting and financing.
3. Tour and critique similar facilities.
“When you look at building plans on paper, it can be hard to really see what you’re
getting,” says Reg. “You want to get out and visit some buildings.” The Penners
recommend that clients take the time to visit buildings that are similar or
comparable to the one they’re considering. Be sure to ask the producer what’s
worked well for them and what they would do differently.
4. Determine your degree of involvement.
Some producers like to act as their own general contractor, sourcing and managing
various trades and suppliers during construction. Others prefer the one-stop, turnkey
approach, such as that provided by Penfor. Whatever their preference, producers
must determine whether their experience and available time are sufficient to see
the project through.
For their part, Reg and Darrell Penner are running hard to keep pace with demand
for agricultural construction in Central Canada.
“We grew up in an industry that was fairly stable, but we’ve seen rapid expansion
over the past 15 years,” says Reg. “The biggest factor has been the tremendous growth
in hogs. Right now, there is also a segment of the dairy industry that’s youthful and
energetic, and they’re buying quota and expanding. It’s a busy time.”
|
