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Contract Growing: The Grower and Integrator Relationship

Date: 
Author: 
Compeer Financial
Educational Opportunities: 
Articles
Interests: 
Grain, Swine
Home > Education & Events > December 2015 > Contract Growing: The Grower and Integrator Relationship
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By now, you know the benefits of contract growing, and how the integrator fits into your overall financial picture. The integrator has more of an impact on your operation than just financially. Selecting the right one can put you in a positive for the future. 

  • Integrators typically have pods of finishing sites that are grouped together across various regions to maximize the benefits of distance from specific packing plants or feed mills. Depending on where you want to build your barn, there will likely be a handful of integrators more interested than others.
     
  • In most instances, the contract grower will be providing labor and covering utility expenses on a barn. A select few integrators are willing to structure the contract in a manner that they will take on that responsibility if you prefer. In these instances, a contract grower should expect to have a lower contract rate.
     
  • Each integrator typically has their own preferred barn design. Progressive pig farmers have done research on barn designs that have worked best under their management. When new contract finishers approach them about building a new barn, they typically want it built to their specifications. Some barns will cost more than others, and as a contract finisher, you will need to determine if the enhanced quality and added costs are justifiable within your capital structure.
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