contract grazing and feedlots

[Central Fl Cracker]

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A new cattle friend of mine wants me to combine our calves and ship them to a contract grazer and then onto a feedlot. The Grazing will be in Oklahoma and feedlot in Armrillo, TX. about 200 miles away. He needs my 50 400 pounders to make up a full load. Afew questions?
1. When I sell my calves at the auction I net about $200 per calf. He claims we can make $ 350 dollars this way.
2. He says it will cost about $ 4,000 for freight from Fl. and $ 35 per head for contract grazing for about 2 months which should take them to 550 - 600 lbs.
3. Then we send them to the feedlot and retain ownership until they reach 1100 or 1200 lbs.
4. We pay for the grain and a 5 cent a head for penning cost
5. He said they should go for 98 cents a lb

one question is how long does it take for the feedlot to put on 700 lbs and what would the feed bill run per month?

 

[novatech]

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A new cattle friend of mine wants me to combine our calves and ship them to a contract grazer and then onto a feedlot. The Grazing will be in Oklahoma and feedlot in Armrillo, TX. about 200 miles away. He needs my 50 400 pounders to make up a full load. Afew questions?
1. When I sell my calves at the auction I net about $200 per calf. He claims we can make $ 350 dollars this way.
2. He says it will cost about $ 4,000 for freight from Fl. and $ 35 per head for contract grazing for about 2 months which should take them to 550 - 600 lbs.
3. Then we send them to the feedlot and retain ownership until they reach 1100 or 1200 lbs.
4. We pay for the grain and a 5 cent a head for penning cost
5. He said they should go for 98 cents a lb

one question is how long does it take for the feedlot to put on 700 lbs and what would the feed bill run per month?

You are going to put on 200 lbs. per animal @ $.98= $196.00-$35.05=$160.95x50=$8047.50-$2000=$6047.50 profit, at that point. You did not input any feedlot costs. Call the feedlot they can give the basic info. Time is dependent on your cattle. 200 to 300 days, dependeing on how well you did your breeding.
There also my be a different price for backgrounding between the grass and the feedlot.

 

[Sir Loin]

Cracker,

The problem I have with this is, as you own the cattle until they leave the feed lot, all the risk is yours.
What if, and it's not uncommon, to have one or two per load die from stress alone from either transport or over crowding in the feedlot.

So when you do your math you better figure in the total loss of at least one.

I would never leave my cattle in the care of a complete stranger, who makes money if they live or die.
SL