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Reusing Existing Facilities for Youngstock (Opportunity or Big Mistake) Robert E. Graves1 November 20, 2003 “Most people over estimate the value of an existing building and underestimate the cost of renovating it.” Introduction The three most important points to consider when evaluating existing buildings and facilities for another use are location, location and location. No amount of money, creativity, engineering expertise, or additional equipment can make up for a building being in the wrong place for its intended use. The best solution is to use it for something else, tear it down, or move the building. If the location is suitable, a building can always be modified for an alternate use. In extreme cases these modifications amount to tearing down the building and starting over. Completely evaluating existing buildings is a tough chore. It’s relatively easy to evaluate obvious defects like leaking roofs, bulging walls, broken beams, missing support posts and inadequate electrical or water systems. Determining the cost of repairing or replacing these items is reasonably straight forward for an experienced contractor or engineer. These costs can be compared with the cost of a new building and can be amortized over their expected life. It’s more difficult to determine the long term cost of animal discomfort, lost productivity, or worker frustration because of compromises made in building layout, inadequate ventilation, or poor accessibility. There are many success stories about reusing old buildings (Johnson, 1988, Humstone, 1988). Unfortunately there are few stories written about the common experience of remodeling jobs that were poorly thought out, were a continuous drain on resources and productivity, and perhaps ended in a failed livestock enterprise. An experienced contractor or engineer should be consulted regarding items such as the structural condition of an existing facility and condition of electrical wiring. Building consultants, extension personnel, veterinarians and other farm service personnel can help in determining management and housing methods that may be appropriate for your area. Animal Needs Establish animal raising needs in terms of space, ventilation, feed handling and manure handling before you evaluate existing facilities as to their usefulness. The requirements for raising healthy animals in a productive manner are the same for renovated buildings as for new facilities. The general requirements include plenty of fresh air, adequate feed space, clean resting areas and continuously available frost free water. Clearance for access with machinery for handling feed, bedding and manure is also important for efficient operation. Buildings with buried or thick stone walls are often impossible to ventilate without the addition of expensive mechanical ventilation systems. A safe convenient method should be available to observe and catch animals for breeding, treatment and loading. Adequate lighting to allow working with animals day or night is also necessary. 1 Professor, Agricultural and Biological Engineering Department The Pennsylvania State University, 201 Agricultural Engineering Building, University Park, PA 16802 (814) 865-7155 [email protected]; www.abe.psu.edu General Evaluation Three general questions to ask as you consider reusing a building are: 1. Why is the building available? Often, the building is available because it was replaced by a more useful facility. Be sure that whatever problems caused it to be available in the first place won't be problems if it is converted to house animals. 2. Are there other building needs on the farm? It may be that there is some other need that the building is better suited for than raising animals. 3. How much would you be willing to pay someone else for the building if you didn’t own it? As you contemplate writing out the check to someone else, it’s amazing how the list of things wrong with the building will grow. Use this list as you make your evaluation. Cost Analysis Fraser (1986), divides items to consider when evaluating buildings for animal use into tangible costs that can be assigned quantitative "out of pocket" values and intangible costs that can only be assigned qualitative values. Tangible costs are things like removing existing equipment or interior partitions, roof replacement, replacing a concrete floor, upgrading electrical wiring, or installing a new ventilation system. In most cases the renovation cost of a major component of a building (roof, floor, wall) is more (up to twice as much) than the cost of the corresponding component in a new building (Fraser, 1986). Reasons for this increase include: 1. Cost of removal of old materials before repair or renovation can begin. 2. Access with power equipment for removal and placement of new material i.e. (Interior concrete floor replacement). 3. Unforeseen problems that require modifications of plans, changing of utilities or modifications of equipment. 4. Renovated buildings usually have lower animal densities, increasing capital cost per animal housed. Intangible costs are those resulting from reduced performance of the building as compared with a new specially designed building. A renovated building seldom ends up just the way one would like to have it. Items such as thick walls, posts, low ceilings, roof construction, surrounding buildings or property lines usually force compromises in the ultimate layout, ventilation system and work patterns. This will affect the day to day function of the building. Changes made in desired routines because of constraints of a remodeled building and reduced animal performance because of less than ideal housing conditions are continuing costs. Bodman and Shelton (1986), suggest that if the projected cost of remodeling exceeds two-thirds to three-fourths the cost of a comparable new facility, a new facility should be considered. The closer the final remodeled facility can approach the functional features and design of the comparable new facility the higher the percentage value that can be placed on the remodeled structure. As the number of compromises from desired work routines, housing methods or ventilation in the remodeled plan increases, the value of the renovated building declines when compared to a new one. A clear span post frame building in good condition is more versatile and usually worth more than the basement of a two story bank barn of equal size. Consider how age and construction of the remodeled building might affect maintenance costs. Factors to Evaluate A logical process should be used to evaluate existing facilities. As each factor is considered, make a record of the expected renovation and/or operating cost of that factor. If dollar values can't be assigned, at least record a qualitative judgment, i.e. "Manure handling will always take longer than in a new barn." "Large round bales can not be feed inside the barn because of low ceiling." Important factors to investigate when evaluating a building include: Location, Location, & Location Distance and wind direction in relation to farm home, neighbors and property lines in regard to odor and noise problems. Ease of access for feeding, observing, manure removing, feed and animal unloading, animals moving from pastures. Also, access for construction and maintenance equipment, fire protection and control of visitors. Distance and direction to roads, property lines, other buildings, streams, wet areas and sharp grade changes in regard to expansion. Space to provide for adequate environmental protection of ground and surface water. Exposure of building for natural ventilation. Distance and direction to other buildings and sharp grade changes in regard to access for manure handling, feed handling, fire fighting and animal handling. Surface and subsurface water flow in regard to keeping building and associated outside lots dry and controlling outside lot runoff. Compliance with local codes or ordinances that affect use of the building for livestock. Ventilation - Suitability and Cost Youngstock always require fresh dry air but usually do not require close temperature control. Buildings that require mechanical means to assure good air quality will be costly to remodel and operate compared to a new naturally ventilated building. The operating and maintenance cost of a mechanical ventilation system required in a converted barn must be considered when comparing total costs to a new naturally ventilated barn. Is there a ventilation system? Is the ventilation system adequate for the intended new use? Will the ventilation system function adequately in summer and winter conditions? Mechanical ventilation - Cost and ease of installation of fans and inlet systems. - Operating cost (electricity and maintenance). Natural ventilation - cost and ease of providing sufficient sidewall and roof openings. - Location and orientation of building. - Basement stables with buried walls and thick stone walls are difficult or impossible to naturally ventilate. Interior Space Arrangement and Clearance Sufficient usable space for the number of animals desired? Demolition costs for removing existing equipment, stanchions, concrete feed bunks, etc? Adequate ceiling height to allow machinery access for materials handling and construction and safe movement of animals, workers and machinery? Adequate door height and width to allow machinery access for materials handling and construction and safe movement of animals, workers and machinery? Post and wall locations in regard to desired pen and feed bunk modules. (layout)? Cost of relocating posts, beams and walls? Clearance for mechanical equipment for feeding and manure removal? Will special equipment be needed to allow use of this building because of restricted clearances? The cost of buying and maintaining a special tractor or loader because of clearance restrictions in the barn must be added to the total cost of remodeling the barn. Manure Handling Access for clean out equipment? Are modifications to floor necessary? Storage possibilities? Control of outside lot runoff? Utilities Frost proof water? The cost of breaking up floors and going through foundation walls to install frost proof water can be high. Exposed water lines will be a continuous problem from freezing, and require regular attention to heat tapes and insulation. Lost production due to poor water availability is also a cost. Water is the cheapest and most important feed ingredient for raising youngstock. Electricity availability. Lighting for night work. Wiring - safe and adequate. Structural Soundness Alignment and general condition of columns, beams, footings and foundation walls. Alignment, strength and condition of support walls and columns. Condition and support strength of hay mow floors. Condition of roof framing and roof cover. Maintenance Requirements Special maintenance due to age or construction of building? Major components of building that will need replacement in a short time compared to a new building? Problems from poor drainage around walls and foundations? Ease of rodent control? Summary In general most people over estimate the value of an existing building and underestimate the cost of renovating it for an alternative use. The long term cost in terms of lost productivity of animals and workers is almost never considered. Furthermore, lack of long range planning when remodeling buildings often results in problems when it comes time to expand or make other modifications to the remodeled facilities. Evaluating existing buildings for alternative uses comes down to asking lots of questions and then trying to answer them as realistically as possible. Some of the questions are hard to answer because they require one to make assumptions regarding things such as foundations, insulation etc that are not visible. Others are tough because they require the projection of lost productivity of animals and workers resulting from compromises in animal comfort or efficient work patterns. The hardest questions involve making decisions about a building that has an emotional attachment (“grandpa built it”). What is the value to a dairy enterprise of a well preserved stately old barn that tourist stop and take pictures of? Fine examples of early barns are important to keep and they make the countryside a nicer place to live, they do not add to the value of animals raised in them! Does this mean that we shouldn't preserve old buildings? No. It means that in many cases we shouldn't subject animals to the poor conditions that often exist in converted buildings as an excuse for saving the building. In fact, in the day of public resistance to large modern animal facilities the presence of a grand old barn can be a plus from a public relations standpoint and will be a constant reminder of the roots of the farm. The location of this type of building near the road and farm residences may make it better suited to use as an office, shop or dry storage. Conclusion Remodeling an existing building can be a wise business decision or a big mistake. "Just because a building is there does not mean that remodeling is the best option." (Bodman and Shetton,1986) Consider all the costs associated with using an existing facility and compare them to the costs of a new facility. Evaluate the affect of using the building on future plans, productivity and day to day operations. If the numbers look good use it, if the numbers are questionable think it over! Old buildings can become a continuous money sink both in tangible and intangible costs. Do not base a 10 or 20 year farm plan around a building with 5 years left on a 15 year roof guarantee! References Bodman, G. R. and D. P. Shelton. 1986. Existing buildings - remodel or abandon? Cooperative Extension Service, Institute of Agriculture and Natural Resources University of Nebraska. NebGuide G86-825 November 1986. Fraser, H.W. 1986. Renovating livestock barns - a management decision. Ontario Ministry of Agriculture and Food. Ag Dex 400/721 Order No. 86-044, June 1986. Humstone, M. 1988. Barn again: a guide to barn rehabilitation. Meredith Corporation and the National Trust for Historic Preservation. Johnson, D. W. 1988. Using old farm buildings. Agricultural Engineering Research Report No. 881 North Dakota State University. July 1988.