The U.S. pork industry has seen its share of consolidation in the past several years however in South Dakota they continue to grow production by bringing in younger producers.
Ag Day’s Michelle Rook spoke with fourth generation pork producer Adam Krause during PORK Week. Krause, who is from Clear Lake, S.D., says he wouldn’t have had the opportunity to come back to the farm without pork production. He raises 25,000 pigs annually in his nursery barn he built in 2016 after graduating from South Dakota State University.
“I own the barn, but somebody else owns the pigs and I just get paid to take care of them,” Krause says. “I’ll get them at 14 lbs. and grow them to 60 lbs. After that they go to the next phase of our operation with working with my dad. He’s got some finisher barns and that particular barn will take those pigs from 60 lbs. to their market weight where they will go to their harvest facility.”
Krause says being a contract grower has opened a door to farming once closed for many young people due to financial barriers including the high cost of land.
“It would have been really difficult for me to come back to the farm if I wouldn’t have built this barn right away,” he says. “It was a great opportunity for me to be my own boss for part of the day and then come back and be a part of something bigger as in my home operation.”
This next generation producer has created an avenue to buy into his family pork and grain operation.
“It’s a great opportunity for a young person like me to gain some equity; put in some sweat equity and maybe start to transition back to the family farm. It took a little bit of that load off not only financially, but as far as building my own balance sheets or being able to buy in or buy some equipment and what that all looks like.”
Krause says he might have been able to do it on his own, but maybe not because every farm is different. He does feel he made the right choice.
“At the end of the day I’m definitely happy I did,” he says.
This type of business arrangement is part of the reason South Dakota has achieved double digit growth in pork production, but he also gives credit to the business-friendly environment.
“Over the last five to 10 to 20 years, there’s been a lot of sow farms,” Krause says. “It’s a great place to put up a sow farm because there’s not a lot of pig pressure, but here in South Dakota we certainly have a lot of corn and soybean meal available.”
As the president of the South Dakota Pork Producers Council, Krause takes pride in the fact this growth is being done responsibly.
“At the end of the day, pig farmers are doing what’s best for their pigs, for their environment and their families and communities,” he adds. “I think they all do a very good job with integrity doing that.”
