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INVESTMENT
COSTS FOR NURSERY AND FINISH FACILITIES
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| Estimates
of building and equipment costs shown in Table 9 are for 1,000
head units. Buildingand equipment investment values
per pig space are benchmarks. Actual investment figures
canvary plus or minus $30 from benchmarks shown based on type
of manure storage facilities andventilation systems used.
Depreciation, interest, repair, taxes, and insurance costs
are calculatedon a per pig space basis for a year. These
costs are based on percentages of new investmentvalues as
indicated in the footnotes to Table 9. Costs are then
stated on a per pig basis. Thesevalues appear in Table
1 and are calculated by dividing pig space costs by turns
per year. Turnsper year represent the number of groups
of hogs run through the facility each year. |
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Table
9. Estimates of Building and Equipment Costs for Different
Hog Finishing Buildings.
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Nursery
Finish Wean-to-finish
Item
10
to 55 lbs.
55
to 255 lbs. 10
to 255 lbs.
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| Building
investment per pig space |
$100
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$140
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$140
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| Equipment
investment per pig space |
$20
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$20
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$40
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-------
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-------
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-------
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| Total
investment per pig space |
$120
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$160
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$180
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| Turns
per year |
6.0
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2.8
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2.0
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| Costs
per pig space per year |
--------------------
$ per space ---------------------
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Depreciation (1) |
$8.67
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$11.33
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$13.33
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Interest (2) |
4.80
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6.40
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7.20
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Repairs (3) |
1.40
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1.80
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2.20
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Taxes (4) |
1.50
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2.10
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2.10
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Insurance (5) |
0.30
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0.40
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0.45
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--------
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| Total
costs |
$16.67
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$22.03
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$25.28
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| Costs
per pig |
------------------------
$ per pig ---------------------
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Depreciation (6) |
$1.45
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$4.05
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$6.67
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Interest (6) |
0.80
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2.29
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3.60
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Repairs (6) |
0.23
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0.64
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1.10
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Taxes (6) |
0.25
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0.75
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1.05
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Insurance (6) |
0.05
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0.14
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0.23
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| Total
costs |
$2.78
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$7.87
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$12.65
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| (1)
Equals new investment cost divided by years of life (15 for
buildings, 10 for equipment). |
| (2)
Equals one-half the total investment time an 8 percent interest
rate. |
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| (3)
Equals building investment times 1 percent plus equipment
investment times 2 percent. |
| (4)
Equals building investment times 1.5 percent. |
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| (5)
Equals total investment times .25 percent. |
| (6)
Equals costs per space per year divided by turns per year. |
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