Cost of Gain

[ROB]

my current cost of gain in my own feedlot is averaging $0.79/lb gain. yesterdays price for feed delivered to the farm was $257.83/ton. how does that compare to what others are seeing? my averages are based on 140 days on feed with ADG = 3.5 lbs

usually, i bring cattle into feedlot when weighing about 800-850 lbs. this year i sowed a patch of pearl millet and have small lots available for grazing. i'm thinking about keeping them on that for an additional 45 days, bringing them into the feedlot at about 900 lbs. that should put an additional $81 in my pocket - granted feed prices stay relative to yesterdays prices.

3 years ago my cost of gain was less than $0.36/lb gain. oh how i long for the good ole days.

ROB

 

[gerardplauche]

Pretty much the same here. I pick up feed for $240.00/ton.

 

[somn]

Pretty much the same here. I pick up feed for $240.00/ton.

Feeding calves from 225# to 500# and it is costing you $.79 a pound for gain? Something ain't right there.

 

[gerardplauche]

Pretty much the same here. I pick up feed for $240.00/ton.

Feeding calves from 225# to 500# and it is costing you $.79 a pound for gain? Something ain't right there.

:lol: :lol: somn - When I said "Pretty much the same here", I was referring to feed prices. I now know better than to discuss ADG's on these boards. Good catch though.

 

[FarmGirl10]

A three ton batch of feed would cost us $950 if we had to buy the corn in it. We pay $350 out of pocket for the pellets/bean meal. The feed is formulated for a 2.5# gain on ten pounds of grain. Figuring in the going rate for corn our cost of gain is $.63 1/3, not figuring in the corn would make it $.23 1/3. That is not figuring in the cost of gain from the silage and hay, which also is not an out of pocket expense

 

[jbar]

Every expense is out of pocket.
Your corn is worth market value weather you feed it or sell it.
You cant know if your making a profit if you dont know what your cost is.
Your cost of gain should include every expense. (grain,grass,water,meds,wormer,fuel, etc)

 

[Stocker Steve]

Pasture cost of gain is all over the map depending on deeded vs. leased land, grazing management, and book keeping ability. I would believe anything between $0.30 and $0.80 per pound.

Backgrounding last fall cost me $0.68 per pound. I am afraid to re calculate with the current inputs.

 

[ROB]

A three ton batch of feed would cost us $950 if we had to buy the corn in it. We pay $350 out of pocket for the pellets/bean meal. The feed is formulated for a 2.5# gain on ten pounds of grain. Figuring in the going rate for corn our cost of gain is $.63 1/3, not figuring in the corn would make it $.23 1/3. That is not figuring in the cost of gain from the silage and hay, which also is not an out of pocket expense

if you don't mind me asking, what are you feeding that is formulated for a 4:1 feed conversion ratio?
the gain of 2.5# per 10# grain is not dependant upon the additional hay & sileage you are feeding? are the calves limit fed the grain- or are they on full feed? ...just curious.

ROB

 

[MikeC]

Saw a couple of closeout sheets last night. COG varied from $0.88 to $.094, even with feeding a ration with 25% distillers grains.

With fats prices in the low $.90 range....it's hard to pencil a profit out of that................

Fattening cattle on Kudzu may be the only answer........ :lol: :lol: :lol: :lol: :lol:

 

[novatech]

Fattening cattle on Kudzu may be the only answer........

If I could figure out how to control it you can bet I would plant it.
http://en.wikipedia.org/wiki/Kudzu
Right now with that 12 ft. tap root and no rain, being a warm season legume at the current price of fert. , topped off by being high in protein, it sure looks mighty inviting.

 

[hayray]

Right now at 240 dollars a ton if you use cracked corn it will take you 86 cents to put one pound of gain on an animal. If you sale your freezer beef for 1.10-1.20 a pound you are still making a profit.

Well that is about $.70/lb live weight, that seems pretty low to me.

 

[FarmGirl10]

A three ton batch of feed would cost us $950 if we had to buy the corn in it. We pay $350 out of pocket for the pellets/bean meal. The feed is formulated for a 2.5# gain on ten pounds of grain. Figuring in the going rate for corn our cost of gain is $.63 1/3, not figuring in the corn would make it $.23 1/3. That is not figuring in the cost of gain from the silage and hay, which also is not an out of pocket expense

if you don't mind me asking, what are you feeding that is formulated for a 4:1 feed conversion ratio?
the gain of 2.5# per 10# grain is not dependant upon the additional hay & sileage you are feeding? are the calves limit fed the grain- or are they on full feed? ...just curious.

ROB

The local feed mill mixes it for us (my brothers idea), actually a couple other people switched to it since the corn prices are so high. I know that gain isn't dependent on hay and silage also. We limit the grain they get on average its 12.4#s a day per head. They used to be on full feed that had, i think, a 2:1 conversion ratio, but then they started eating to much and would bloat real badly. So we changed to grain with the 4:1 ratio, since we've done this they have been growing nicer.

Every expense is out of pocket.
Your corn is worth market value weather you feed it or sell it.
You cant know if your making a profit if you dont know what your cost is.
Your cost of gain should include every expense. (grain,grass,water,meds,wormer,fuel, etc)

Yes, I know that every expense is technicly out of pocket, but in my terms I don't consider it out of pocket because I never see a bill for it. I figured it both ways for my own reference, when I check to see if I have a net income, net loss, or broke even I use the actual cost (grain, hay, meds, wormer, fuel, electric to run the waterers, equipment replacement, ect.)

 

[somn]

The local feed mill mixes it for us (my brothers idea), actually a couple other people switched to it since the corn prices are so high. I know that gain isn't dependent on hay and silage also. We limit the grain they get on average its 12.4#s a day per head. They used to be on full feed that had, i think, a 2:1 conversion ratio, but then they started eating to much and would bloat real badly. So we changed to grain with the 4:1 ratio, since we've done this they have been growing nicer.

What weight are these cattle that were turning 2 to 1? Sounds like you needed to add some monensin if you were having that much bloat.

 

[FarmGirl10]

What weight are these cattle that were turning 2 to 1? Sounds like you needed to add some monensin if you were having that much bloat.

I forget what weight they were at that time (it was a while back), but these cattle were really stupid. The SimmiX steers would eat it fine without bloating, but there were also a couple Holstein steers in with them that would just keep eating and eating and eating. The holsteins, I don't ever remeber seeing any of them eat hay/silage during this period of time.