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EAST TENNESSEE market prices
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<blockquote data-quote="Brandonm22" data-source="post: 654444" data-attributes="member: 7645"><p>To be in this buiness a long time 90 cents a pound needs to be break even, at least for the cash inputs, for ~560 pound feeder calves. If you lose money at $1.04, I would argue that you will lose money ~6 or 7 out of ten years. IF you sell 100 calves a year, and break even is at $1.04 even at $1.30 you only make $14560 in the best of times, hardly enough return to investment and certainly not enough to cover your losses in a really down year.....something we have not seen in a long while though last fall got a little scary. Now HOW you get your feed, fertilizer, hay, and machinery costs (normally the big four) down low enough that you break even at $.90 a pound (and if you sell heavier calves your breakeven typically needs to be lower per pound as they typically bring less per pound), I don't know.</p></blockquote><p></p>
[QUOTE="Brandonm22, post: 654444, member: 7645"] To be in this buiness a long time 90 cents a pound needs to be break even, at least for the cash inputs, for ~560 pound feeder calves. If you lose money at $1.04, I would argue that you will lose money ~6 or 7 out of ten years. IF you sell 100 calves a year, and break even is at $1.04 even at $1.30 you only make $14560 in the best of times, hardly enough return to investment and certainly not enough to cover your losses in a really down year.....something we have not seen in a long while though last fall got a little scary. Now HOW you get your feed, fertilizer, hay, and machinery costs (normally the big four) down low enough that you break even at $.90 a pound (and if you sell heavier calves your breakeven typically needs to be lower per pound as they typically bring less per pound), I don't know. [/QUOTE]
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