Two years ago, Mike and Nick Wenger, co-owners of M&N Ag Systems, purchased a 4,000-head site in northwest Iowa. One of the hog buildings had fallen and the other needed dismantling. The Wengers decided to rebuild on the original concrete and slats that they felt would last another 10 to 15 years.
“This was a complete tear-down and rebuild with all new equipment,” Mike Wenger explains. “We ended up not sparing any expense. We did slat coating around the wet/dry feeders and put in stainless steel gating, gas lines, heaters, curtain bars and aluminum ceilings.”
In addition, they upgraded the roof steel to 26 GA to appease insurance companies. They put in connecting hallways with Danish entry and dock height loadout. They added in AP Edge2 controls and commander fans that are highly efficient and are high-volume CFM (cubic feet per minute).
“We ended up having around $300-a-pig space in it and appraises for more than that,” Wenger says. “New construction is around $450. You just can’t cash flow that, so we felt like it was a good investment.”
Although the U.S. pork industry is seeing some growth and new buildings going up in 2026, high construction costs are forcing many producers to evaluate existing assets and make tough decisions.
“Price remains a major driving factor when it comes to decisions to remodel, build or get out of business,” Wenger says.
Producers are actively deciding whether to completely upgrade older farms or close them down and build brand-new ones.
“From a sow farm standpoint, I think people are taking a hard look at their old sow farms and asking themselves if they need to upgrade what they have or close those down and build new ones,” says Randy Kuker, director of swine production for The Equity based in Illinois. “On the grow-finish side, there’s more of a push to retrofit and bring barns up to standards because times have been tough the last few years.”
The Checklist for Retrofitting—What Makes a Barn “Worth It”?
Many factors are involved in determining if a barn is worth saving, Wenger adds. Each situation is different and depends on how the owner or previous owner took care of it.
Kuker outlines specific criteria that make an older barn a viable candidate for a retrofit:
- “Good Bones” and Infrastructure: The barn must have solid structural integrity, particularly good slats and infrastructure.
- Location and Biosecurity: Location is critical. A barn is worth saving if it is situated in a highly biosecure area with a low pig density.
“Some of those units, the smaller sites for 1,000 to 1,200 head, don’t pencil out very well now,” Kuker says.
Modern industry flows demand scale. Today’s sow farms are built for 10,000 to 12,000 head, Kuker points out, allowing producers to bring in new pigs and fill buildings all at once. Modern operations typically do not want to manage the logistics of smaller 1,000-head facilities such as increased transport costs, biosecurity risks and labor logistics compared to filling a single 2,400- or 4,800-head finishing barn all at once.
Questions to Ask Before You Retrofit
Contract growers should determine what they can get for a contract rate first. Then, Kuker suggests asking the following questions:
- Is there a quality feed mill nearby?
- Is there an established packing plant(s) nearby?
- Is my facility in a biosecure location?
- Do I have use for or ability to sell manure?
- Will the concrete and slats last another 10-20 years?
- Will it be a total gut and replacement of all equipment or can some of it be used, such as gates, feeders and fans?
For independent pig owners, he suggests also asking these questions in addition to the questions above.
- Am I short on space and need to sell wean pigs or rent barns from others?
- Do I have the labor available?
When is it Time to Rebuild?
When the repairs and maintenance are costing more than what the integrator is requiring for the contract, Wenger suggests it’s time to rebuild.
“You’ve got to ask yourself, ‘Am I dumping money into something constantly and having subpar results? If so, new construction may be your best option,” Wenger says.
Kuker also advises looking at the industry outlook and demand for barn space in your area.
“In 2026, there is a demand for barns in the Eastern Corn belt and a lot of competition for space,” Kuker says. “But, three years ago when producers were losing $30 a head, I would not have considered investing any money into a new or old barn.”
Another advantage of new construction is that upgraded equipment and barn systems can offer better performance, Kuker adds.
“If you are a contract grower, consider where you are at in your contract,” Kuker says. “For example, if you are near the end of your first contract and about to pay off your barn, you should do an honest evaluation and see what upgrades need to be made to get the best next contract.”
Some upgrades to consider when building include:
| Upgrade Ideas | Opportunity |
| Wet/dry feeders | Better cost per pound of gain |
| Smart controllers, actuated inlets, energy-efficient fans | Better ventilation management and lower energy costs |
| Improved load design system | Lower dead-on-arrivals and downers and better employee safety |
| Bin monitoring systems | Fewer out-of-feed events resulting in better average daily gain and feed conversion rates |
| Tunnel ventilation | Switching from natural ventilation to tunnel ventilation can lead to better gains |
| Deeper manure pits | More manure storage |
“All of these upgrades should make your site more valuable to your operation or to the pig owner that is renting your barn,” Kuker says.
A Dose of Financial Reality for the Next Generation
Wenger knows it’s a tough decision to build new or retrofit in today’s high-cost market. He urges producers to take time to weigh out this big decision and seek the counsel of experts along the way.
“One of our sayings is ‘pay more now or pay more later,’” he says. “With the volatility of the markets, it’s sure not getting any cheaper.”
For older producers looking to bring a younger generation into the business, Kuker advises a strong dose of financial reality:
- A Shift in Cash Flow: Twenty years ago, hog barns cash-flowed much better and easily covered labor. Today, the financial reality is that a new producer is “basically going to work for free for 15 years” before the facility starts paying off.
- The “Manure Factor” is Make-or-Break: You cannot justify the high cost of a facility on hog dollars alone. The operation must be able to utilize and value the manure on their own crop acres to make the numbers work.
Because of the massive capital required, Kuker emphasizes the importance of transparent, honest counseling. A producer must see the real ROI numbers up front to avoid costly regrets.
“I’m not going to blow smoke,” Kuker says. “A happy producer is a good producer, and I don’t want them having regrets after investing this kind of money because it’s not cheap.”
