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Entry 4

Posted Thursday, March 21, 2002, at 12:00 PM ET

Dean Tofteland is a family farmer who raises pigs in southwestern Minnesota.

It's a beautiful morning to move pigs. The sun is shining, and the temperature is a perfect 25 degrees.

After the regular chores this morning, I check over the freshly cleaned finisher to be sure it is ready for the new tenants. I adjust the feeders and water cups and make sure the temperature is at the proper setting. Between groups, I make repairs and do maintenance on each pen. You could describe me as the landlord of a "pig penthouse." When I run into those old college friends, I could describe my job as, "Well, I manage two 48-unit condo complexes up on Bacon Hill. I have no problem keeping them full, but the attrition rate runs little high every couple months."

Now it's off to the business of moving those feeder pigs. This is the part of my job that I probably enjoy the least. Today the pigs weigh 54 pounds and are solid and lean. We move each pen, about the size of two litters (or 25 pigs), one at a time. This keeps the same "family" of pigs together all the way from weaning to market. We use sorting panels and plastic rattles to push the pigs along in small groups of about five to eight. We go slow to give the pigs time to check out everything on the way. They are very curious. Our trailer holds six pens, so we make a total of eight trips to fill the new barn. After about five hours, my kneecaps feel sore from pushing the panel along, and I'm relieved that we are finished. Some of those pigs can back up faster than they go forward.

Back in the office, my 2-year-old partner checks in on his dad. He holds his nose to confirm that I am wearing that "smell of money" aroma. Since we weigh the pigs on arrival and departure, I now calculate their growth rate and other performance measures, such as average daily gain and feed conversion. From these figures I can calculate my cost per pound of gain and ultimately project a break-even price—this is the price I need in order to make a profit. I follow the market looking for opportunities to hedge or lock in a profit. This week I see the pigs markets are going straight down. The value of my pigs has dropped $6 per hundred this week alone! This equates to about $16 per pig. It looks like we're below break-even now.

As I turn to check the market screen, the phone rings. It's my banker. "… And since your loans are due at the end of the month, I would like to get together for your annual review. … " Another bank meeting. Has he seen the markets? Time is one of my most valuable assets, and I 'm not able to list it in my balance sheet! (Even if I could, it would probably show up as a liability.) But I remember my true net worth is my family.

This is really the ultimate home business. Family and farm are woven together like the blanket grandma made for us. It looks a little tattered now, but it still serves good purpose.

Entry 4

Posted Thursday, March 21, 2002, at 12:00 PM ET
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Dean Tofteland is a family farmer who raises pigs in southwestern Minnesota.
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