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Financing your herd.
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<blockquote data-quote="Beef11" data-source="post: 144572" data-attributes="member: 2705"><p>Sorry about the "beancounter jibberish" vertical intergration is where you take on seperate enterprises that are in the same production line. land is probably the main one . One way or the other land is needed for a cattle operation but owning it isnt necessary and if you do own it you don't have to run cows on it you can always lease it out so it has a value tied to it. If i own my pasture free and clear, my cows still have to pay rent i use the price that i could lease it to someone else for. Hay is the second most popular vertical intergration. if You can sell your hay for 80 a ton it is worth 80 a ton (rocket science) so your cows should be held accountable for it. So when you look at your numbers at the end of the year you can tell where you made your money, if you made any at all. Horizontal integration is when you move into an enterprise that intersects your production line for instance becoming a dealer of livestock equipment squeeze chutes panels and the like. In country boy terms; If you can sell your hay and rent your grass out and dont have to pay interest on your note plus you can make money in your new found free time and in the end have more than if you were raising cows, The Cows arent making any money. Sorry about the jargen</p></blockquote><p></p>
[QUOTE="Beef11, post: 144572, member: 2705"] Sorry about the "beancounter jibberish" vertical intergration is where you take on seperate enterprises that are in the same production line. land is probably the main one . One way or the other land is needed for a cattle operation but owning it isnt necessary and if you do own it you don't have to run cows on it you can always lease it out so it has a value tied to it. If i own my pasture free and clear, my cows still have to pay rent i use the price that i could lease it to someone else for. Hay is the second most popular vertical intergration. if You can sell your hay for 80 a ton it is worth 80 a ton (rocket science) so your cows should be held accountable for it. So when you look at your numbers at the end of the year you can tell where you made your money, if you made any at all. Horizontal integration is when you move into an enterprise that intersects your production line for instance becoming a dealer of livestock equipment squeeze chutes panels and the like. In country boy terms; If you can sell your hay and rent your grass out and dont have to pay interest on your note plus you can make money in your new found free time and in the end have more than if you were raising cows, The Cows arent making any money. Sorry about the jargen [/QUOTE]
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