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Cost raising cattle question
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<blockquote data-quote="usernametaken" data-source="post: 435870" data-attributes="member: 6820"><p>I believe you are correct tmaygspeara. I think tmaygspeara hit a nerve with his original post. He makes money and it sound easy, but his situation is not the same as many others. Nonetheless, if you take what he said simply, without reading into it more, I believe he is referring to the fact that there is money to be made off of cattle. Simply taken this is the cow herd minus the expenses spent on the cow herd + the sales price = the simple profit. This of course does not figure into it various outlays of capital, which is where he has an advantage in figures. I believe he is correct in figuring that whether or not the cow services the debt load completely or not, does not take away from the fact that the herd made money. Debt load, depreciation, etc. would need to be considered separately. If the herd brings in a return of any kind, be it enough to service debt load or not, the herd made money that is applied to equity. Equity is money too. If the herd does not contribute equity fast enough, that is a personal situation - can expenses be reduced or are you willing to wait out the time to build enough equity ? Still does not negate the fact the herd made money. </p><p></p><p>If the herd is not vaccinated it may be a risk to feedlots, but then again, with all the heat and humidity and crawly vermin in Louisiana, ripe for production of bacteria, they may have some seriously strong immune capabilities built up, worm resistence, etc.</p><p></p><p>Just some thoughts.</p><p>untaken</p></blockquote><p></p>
[QUOTE="usernametaken, post: 435870, member: 6820"] I believe you are correct tmaygspeara. I think tmaygspeara hit a nerve with his original post. He makes money and it sound easy, but his situation is not the same as many others. Nonetheless, if you take what he said simply, without reading into it more, I believe he is referring to the fact that there is money to be made off of cattle. Simply taken this is the cow herd minus the expenses spent on the cow herd + the sales price = the simple profit. This of course does not figure into it various outlays of capital, which is where he has an advantage in figures. I believe he is correct in figuring that whether or not the cow services the debt load completely or not, does not take away from the fact that the herd made money. Debt load, depreciation, etc. would need to be considered separately. If the herd brings in a return of any kind, be it enough to service debt load or not, the herd made money that is applied to equity. Equity is money too. If the herd does not contribute equity fast enough, that is a personal situation - can expenses be reduced or are you willing to wait out the time to build enough equity ? Still does not negate the fact the herd made money. If the herd is not vaccinated it may be a risk to feedlots, but then again, with all the heat and humidity and crawly vermin in Louisiana, ripe for production of bacteria, they may have some seriously strong immune capabilities built up, worm resistence, etc. Just some thoughts. untaken [/QUOTE]
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