Michigan Farmer February 2006 / 7
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NewsWatch Briefs
Learn how to start a farm
Operating a profitable farm requires
more than a few acres, a plow and
a tractor. Learn about the potential
for new agricultural operations by
attending Agri-Preneur 101, a sixpart workshop offered by Michigan
State University Extension. The
series begins Feb. 9 and continues
weekly through March 16 at the
Tuscarora Township Hall in Indian
River. Each session runs from 6:30
to 9 p.m. Topics include marketing,
livestock production, farm business
and financial resources, soils,
organic and conventional production,
fruit and vegetable production
and holistic decision-making. The
registration fee for the six-part
session is $90 per person or $110
per couple. Participants may also
attend individual sessions for $20
per person or $30 per couple. To
register, contact the Cheboygan
County MSU Extension office by
calling (231) 627-8815 or e-mailing
[email protected].
Chamberlain named new MFB
Young Farmer Dept. manager
DYKHUIS FARMS Inc. is the largest hog producer based in Michigan. Members of the Dykhuis family include (front) Bob and
Lorrie, and their children (back from left) Joe, Cara, Erin Ehinger, Jenna and Rachel.
Bob and Lorrie Dykhuis open operation to their family
B
OB and Lorrie Dkyhuis’ oldest daughter, Erin Ehinger, who is 22 and has a degree in animal science from Iowa State, has
come back to the farm and is the assistant reproduction supervisor. “She is working with our breeding unit managers to
decrease mortality in our farrowing barns. She visits them weekly, has developed a procedures manual and helps with labor
management. It’s really nice to have her back on the farm; she’s definitely a forward thinker,” Bob says.
Their son Joe, 21, is a junior at Purdue University studying ag economics. “I fully intend to come back to the farm. It’s a
great opportunity for me. I like the whole package of being on the farm and part of the business,” he says.
The other Dykhuis daughters have varying interests. Rachel, 18, a freshman at Valparaiso University in Indiana, says being
around pigs has spiked her interest in nursing. “I really like the birthing and medical aspect of the business, but I would rather
be around people. I’m planning on pursuing a degree in obstetrics or surgical nursing.”
Cara, 17, a high school senior, says she wants to be an elementary school teacher, and Jenna, 14, says it’s too early to
tell. “Cara and I clean the office on the weekend, pick up rocks and do the mowing on the farm,” she adds.
It worked so well, more contract facilities were added and by 1995, the operation had 2,500 sows.
“I thought, wouldn’t it be great if we
could move 1,000 head of gilts and 1,000
head of barrows a day,” Bob says.
In 1997, Dykhuis Farms was expanding again. “By the grace of God,
some things just happen for a reason,”
he says, reflecting on being able to survive making a huge investment just a
year before the market crashed.
Financial security
Bob, who was serving on the National
Pork Producers Council Swine Health
Committee, was out of state for a
meeting and rooming with a Colorado
producer, Gary Simpson, who had ex-
panded his short-term credit and now
was paying for it. “He was downsizing
his operation because the bank decided
to get out of ag and wanted their money
in three months,” Bob says.
“So, when we decided to expand in
1997, I was careful to not put the operation in the same position Gary found
himself in.”
When the operation refinanced, Bob
bid it out, looking for a long-term commitment and the right-size debt. Good
ratios and projections allowed the farm
to secure a three-year, renewable operating loan vs. the more traditional oneyear.
“We’d already been approved for the
loan, when Roger Betz [UPS] brought
over some new computer software
Dykhuis believes in being at the table
ART of being a good manager, according to Bob Dykhuis, is being a leader
and being involved with the industry. He serves on a multitude of committees
and boards. “It’s hard to have a vision for the future if you are not involved and
representing industry.”
That also includes being a good steward of the land. “We have a responsibility
to take care of the resources that are entrusted to us,” he says.
The Dykhuis farms in Allegan and Ottawa counties are both certified by Michigan’s Agriculture Environmental Assurance Program. They also follow Michigan’s
Certified Nutrient Management Program.
P
and plugged in the numbers. Our cash
flow was much better than we originally thought and our line of credit was
higher than we really needed. But, because we were already approved at the
higher rate, we just left it.”
Weathering the storm
That operating line of credit proved to
be mountainous when the hog prices
plummeted in 1998. “We were selling
hogs at 8 cents a pound when the cost of
production was in the upper 30s,” Bob
says. “We were losing $100 a head. We
had some futures contracts, but it was
minimal. What kept us in the business
was good production and cash flowing
with that line of credit. I had a friend
in high school who always said, ‘When
your outflow exceeds your inflow, your
upkeep becomes your downfall.’ Things
do break, so we worked hard on cutting
production expenses and increasing
labor efficiency.”
Dykhuis Farms has continued to
reach for efficiency and success —
profits have followed. The operation
focuses on matching employees with
the work they enjoy. “It’s about putting
people in key positions — where they
want to be — and watching them excel,”
he says. “I put a lot of emphasis on
managing this company, making good
Lori Chamberlain recently
assumed the role of manager
of the Michigan Farm Bureau
Young Farmer Department. She
replaces Matt Smego, who took a
new job with MFB as agricultural
ecology specialist. Chamberlain,
of Webberville, began her MFB
employment in 2004 as a regional
representative servicing Farm
Bureaus in Clinton, Eaton, Genesee,
Ingham and Shiawassee counties.
In her new position, she will be key
to the leadership development of
MFB Young Farmer committees
at the state and county level.
She will also serve as the FFA
Alumni administrative director and
coordinate the MFB Star Awards
program.
decisions and at the right time. And, of
course, you have to have the heart for
it. A lot of people depend on it.”
Here’s Dykhuis
Farms timeline
1978 – Partnership with Bob and James
Dykhuis with 135 acres and 80 sows,
producing feeder pigs
1985 – Partnership dissolves. Bob starts
new farm on 90 acres and 270 sows
1987 – Expansion to 600 sows
1990 – James retires, Bob buys farm,
remodels and expands to 900 sows
1992 – Farm switches to farrow-to-finish
operation
1994 – Establishes first contract finish
agreement
1995 – Expands contract agreements
and increases sows to 2,500 head
1997 – Expands to 5,400 sows
2001 – Adds another 3,000 to now total
8,400 sows
2003-2005 – Expansion to 15,000 sows
and inventory of 170,000 head. Buys
Kalamazoo farm, houses 8,800 finishing
hogs and 4,400 nursery pigs