Feedyard Margins

[AngusLimoX]

I was reading on another board about feedlots seeing a lot of red ink.

I was thinking of starting to feed to finish about 60 head at a time.

Buy them (preconditioned) at 500lbs 1.40/lb ($700) and sell them at 1400lbs 0.97/lb.($1358).

Feed $300 Meds $20 Trucking $20

Without going too fine on it ( death loss,shrink, blah blah blah) I would like to see $250/hd in my pocket. ( A lot of my fixed expenses are already there from the cow/calf side,so I don't count them :lol: ). I already have everything like feed bins,augers, hammer mill,bunks,pens,troughs sitting there.

What am I missing??

Come on, please talk me out of it! :lol: :lol:

 

[Tod Dague]

I was reading on another board about feedlots seeing a lot of red ink.

I was thinking of starting to feed to finish about 60 head at a time.

Buy them (preconditioned) at 500lbs 1.40/lb ($700) and sell them at 1400lbs 0.97/lb.($1358).

Feed $300 Meds $20 Trucking $20

Without going too fine on it ( death loss,shrink, blah blah blah) I would like to see $250/hd in my pocket. ( A lot of my fixed expenses are already there from the cow/calf side,so I don't count them :lol: ). I already have everything like feed bins,augers, hammer mill,bunks,pens,troughs sitting there.

What am I missing??

Come on, please talk me out of it! :lol: :lol:

Just a question. Does your $300 include the cost of operating your mill and augering it in to the troughs?

 

[AngusLimoX]

Just a question. Does your $300 include the cost of operating your mill and augering it in to the troughs?

I would say yes, but I also would say I can do better than that on the feed. You can have cracked corn blown in for 140/ton and less for c.o.b. mixes. I could have got whole corn for 90/ton a while back so I would have to look it over once I decide to go for it.

 

[Howdyjabo]

I think its a great idea

I have 80 head preconditioned and ready to go too
It'll take more than 60 head to make a trailer load-- so unless you get them in local-- to make hauling them in pay--- you need to think 70-80 head.




There is a program that you can download for free from Oklahoma State Universitys Web site.
Its called OSU Feedlot
Its basic but gives you a real good working idea of what things will pencil like.
But its only as good as the numbers you input

 

[somn]

I was reading on another board about feedlots seeing a lot of red ink.

I was thinking of starting to feed to finish about 60 head at a time.

Buy them (preconditioned) at 500lbs 1.40/lb ($700) and sell them at 1400lbs 0.97/lb.($1358).

Feed $300 Meds $20 Trucking $20

Without going too fine on it ( death loss,shrink, blah blah blah) I would like to see $250/hd in my pocket. ( A lot of my fixed expenses are already there from the cow/calf side,so I don't count them :lol: ). I already have everything like feed bins,augers, hammer mill,bunks,pens,troughs sitting there.

What am I missing??

Come on, please talk me out of it! :lol: :lol:

Where exactly are they paying .97/lb
I need to change buyers apparently.

 

[Tod Dague]

Just a question. Does your $300 include the cost of operating your mill and augering it in to the troughs?

I would say yes, but I also would say I can do better than that on the feed. You can have cracked corn blown in for 140/ton and less for c.o.b. mixes. I could have got whole corn for 90/ton a while back so I would have to look it over once I decide to go for it.

Your looking to get them to gain 900 lbs. for $300. You going to need some cheep protein to add to that corn. At 140 a ton your expecting them to average 1 lb of gain to every 4.76 lbs of grain. It can be done but how many of those 60 calves are going to do that? Need to cheep-en your feed. Don't fall in the trap of not figuring everything into your program.
Are you planning on marketing the calves yourself to private individuals?

 

[AngusLimoX]

Where exactly are they paying .97/lb
I need to change buyers apparently.

Up here in Ontario Canada - home of gay marriage and 40%tax rates! :lol:

That .97/lb is in Canuckle bucks, it is down from $1.05 for fancy steers.

 

[Big D]

ALX, Are you going to use a growing phase then on to a finish phase? If you put them calves on finish feed at 500 lbs. they will not be in much demand at 1400 lbs.. You could probably just roll them around when you needed too. Unless your feeding something with a very large frame.

 

[AngusLimoX]

ALX, Are you going to use a growing phase then on to a finish phase? If you put them calves on finish feed at 500 lbs. they will not be in much demand at 1400 lbs.. You could probably just roll them around when you needed too. Unless your feeding something with a very large frame.

Yes exactly Big D, no need to have em on high test all the way through. And it is the fine points like frame size and pounds per day stuff like Todd brought up that I am looking for. And I have some sources for lower cost feed depending on where the cattle are, and most of it I grow myself.

I guess I am also looking for any herd health tips/nightmares!