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<blockquote data-quote="IluvABbeef" data-source="post: 573759" data-attributes="member: 3739"><p>Here's where I got that "higher risk operation" from:</p><p></p><p>"[A stocker program] is a high risk venture. High risk results from seasonal and yearly price fluctuations in feeder cattle, and the fact that total gains are not large in proportion to the weight purchased. Also, stocker operators who rely on winter wheat or oat pastures or summer grazing my have to purchase cattle when the price is high and sell them when the market is flooded with similar cattle. Moreover, lack or rain may make for small gains and high costs." (from the Beef Cattle Science book) </p><p></p><p>So, I guess what I was trying to say with the stocker operation being higher risk than cow-calf is mostly from the standpoint of the market, than from the dangers of Mother Nature. They also forgot to mention that, and I know this was mentioned previously on this thread somewhere, that the loss of one or two stockers can set a stocker operator back a bit because of the hope that he'd sell 100% of the herd that he originally purchased. But of course losing a young calf or a cow also sets a producer back too, one way or another.</p></blockquote><p></p>
[QUOTE="IluvABbeef, post: 573759, member: 3739"] Here's where I got that "higher risk operation" from: "[A stocker program] is a high risk venture. High risk results from seasonal and yearly price fluctuations in feeder cattle, and the fact that total gains are not large in proportion to the weight purchased. Also, stocker operators who rely on winter wheat or oat pastures or summer grazing my have to purchase cattle when the price is high and sell them when the market is flooded with similar cattle. Moreover, lack or rain may make for small gains and high costs." (from the Beef Cattle Science book) So, I guess what I was trying to say with the stocker operation being higher risk than cow-calf is mostly from the standpoint of the market, than from the dangers of Mother Nature. They also forgot to mention that, and I know this was mentioned previously on this thread somewhere, that the loss of one or two stockers can set a stocker operator back a bit because of the hope that he'd sell 100% of the herd that he originally purchased. But of course losing a young calf or a cow also sets a producer back too, one way or another. [/QUOTE]
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