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Calculate Cost to Carry
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<blockquote data-quote="MO-Ruminants" data-source="post: 1575477" data-attributes="member: 37980"><p></p><p></p><p>Admittedly, I may not even fully understand my own question...but your answer feels like it is close to the solution.</p><p></p><p>Bob is back, and he has a new quandary. His current inventory is fifty 600# steers. Current markets are undervaluing bred heifers. It is June, and Bob has grass. Bob also has cash, and is led to make a move. For the sake of this example, let's assume Bob would like to purchase the bred heifers, calve them and sell the pairs. He will have standing forage throughout, growing or stockpiled.</p><p></p><p>Suppose the prevailing lease price in Bob's county is $50, and that he expects 100 cow days/acre from his land.</p><p></p><p>Am I reading that Bob can now assign a pasture charge of $.50/head ($50 / 100) to the bred heifer enterprise?</p></blockquote><p></p>
[QUOTE="MO-Ruminants, post: 1575477, member: 37980"] [i][/i] Admittedly, I may not even fully understand my own question...but your answer feels like it is close to the solution. Bob is back, and he has a new quandary. His current inventory is fifty 600# steers. Current markets are undervaluing bred heifers. It is June, and Bob has grass. Bob also has cash, and is led to make a move. For the sake of this example, let's assume Bob would like to purchase the bred heifers, calve them and sell the pairs. He will have standing forage throughout, growing or stockpiled. Suppose the prevailing lease price in Bob's county is $50, and that he expects 100 cow days/acre from his land. Am I reading that Bob can now assign a pasture charge of $.50/head ($50 / 100) to the bred heifer enterprise? [/QUOTE]
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