Purdue News

January 8, 1999 Videoconference examines future of pork producers WEST LAFAYETTE, Ind. -- In a continuing effort to help pork producers cope with the lowest prices for pork since the Great Depression, Purdue University Cooperative Extension Service specialists will hold a videoconference, "The Future of Indiana Pork Producers," at 7 p.m. Thursday (1/14). This is the second videoconference Purdue has broadcast with advice and strategies to help pork producers. The first, "Crisis in the Pork Industry," aired Dec. 17. Topics to be covered this time include a marketing outlook, a segment on state and federal efforts, and retail and slaughter updates. A panel of pork producers and advisers will discuss their plans for staying in business. Tippecanoe County producer Levi Huffman, who recovered from a devastating fire in 1994 that wiped out the majority of his operation, and David Hoar, president of the Indiana Pork Producers Association, will share their survival strategies. Ed Nelson from Indiana Packers and Purdue financial strategist Mike Boehlje also will be interviewed. The videoconference will be shown at select Purdue Cooperative Extension Service offices in counties across the state from 7 p.m. to 9:30 p.m. EST. Producers can call their county Extension office or (888) EXT-INFO to find out which counties will carry the program. Pork producers with the large home satellite dishes can tune into the broadcast on C-Band (Telstar 5, transponder 24/channel 24) and on KU-Band (GE-3, transponder 18). "At two-and-a-half hours, it's a marathon of a program," said David Petritz, Purdue Extension program leader for agriculture and natural resources. "But pork producers need all the information they can get, because they're making decisions today that will determine whether they stay in business tomorrow." Purdue Extension agricultural economist Chris Hurt said most producers have at least four more months of losses before they get back to a break-even point. "Given the unimaginable losses of $50 to $70 per head in the past two months, cash flow is the number one priority for many," he said. Most producers will ask lenders for larger credit lines, Hurt said. Lenders, in turn, will ask for additional collateral. Some grain-hog farms will have land to back larger loans; others will not. "This could lead to what is called a 'liquidity crunch,' when lenders tighten their requirements for loans at the same time producers need greater borrowing capacity," Hurt said. "In these situations, lenders will make credit decisions on an individual basis. Most of those who cannot garner greater borrowing capacity will be forced to liquidate all, or a portion, of their herds." Petritz said all producers will need to assess their future positions in the swine industry. He is part of a task force convened Monday (1/4) by Lt. Gov. Joe Kernan and Purdue Dean of Agriculture Victor Lechtenberg. Committees have been assigned to address contracting and marketing, economic projections for lenders, guaranteed loans, environmental compliance assistance, and pseudorabies intervention. Those activities and other state efforts will be covered during the Purdue videoconference. For more information on the satellite conference and the pork situation, check out the Purdue Pork Page. As of Jan. 5, 25 viewing sites in Indiana had been signed up by Extension educators for producers in Allen, Bartholomew, Cass/Fulton, Clark, Daviess, Dubois, Delaware, Fayette, Franklin, Jasper, Hamilton, Howard, Knox, Marion, Marshall, Miami, Orange, Putnam, Ripley, Rush, Scott, Steuben, Tippecanoe, Vanderburgh and Vigo counties. Producers should contact their local Extension offices for location information. Sources: David Petritz, (765) 494-8494 Chris Hurt, (765) 494-4273 Writer: Chris Sigurdson, (765) 494-8415; e-mail, sig@ecn.purdue.edu Purdue News Service: (765) 494-2096; e-mail, purduenews@purdue.edu To the Purdue News and Photos Page