Livestock and poultry production provides opportunities for young producers
By Bob Campbell | 2/21/2008

Coming back to the family farm or starting a new livestock operation is a dream for many young people across the state. In today’s world, however, the economics of adding people to an existing operation or starting a new venture can create challenges for making the dream a reality.

The livestock and poultry industry is the largest industry in the state of Nebraska, and the benefits of animal agriculture in the state have been well documented.

Enabling the next generation of livestock and poultry producers to “come home” could be possible by adding an income-producing enterprise to an existing operation. Options include:

• Vertically integrating an existing livestock or poultry operation,
• Enhancing an existing farming operation, and/or
• Better utilizing existing resources such as labor, equipment and less productive land.

Most livestock and poultry enterprises require significant capital and liquidity to allow for reasonable profitability. Young producers who have limited capital may consider the possibility of custom or contract production as a means of limiting the amount of start-up capital. In addition, young producers may consider creating partnerships with other producers or investors in order to raise adequate equity to capitalize their newly created operation.

In either case, it is important to have a business plan that outlines the goals of the operation, along with a plan to manage the risks inherent to livestock and poultry production. Just as critical is to make sure that all local, state and federal laws and regulations are complied with. This is an area where the Alliance for the Future of Agriculture in Nebraska (A-FAN) can be a tremendous resource.

Farm Credit Services of America understands the benefits of animal agriculture for all of the state, as well as the challenges facing the industry today. We also understand the challenges that our young people face as they try to start their livestock and poultry operations. We have chosen to support A-FAN because of the need for accurate information to help producers and others impacted by animal agriculture to make sound business decisions.

Bob Campbell is a senior vice president with Farm Credit Services of America. He is based in Lincoln, Neb.