How far off is this estimate?

[versatile976]

I have plenty of extra hay this year. Alfalfa grass mix. It's getting hard to sell and I think I can make more money with it. I can also get barley at 120 a ton and wheat midds at 100 a ton. If I'm balancing my rations right, and the nutritionist seems to think so I can grow calves at .24 cents COG in feed. I'm valuing hay at what it cost to put up which most people disagree with. From about 600 to 950lbs. I have little idea on what a custom feedlot would charge to finish them out. But from my best estimates and a 7.5:1 feed to gain conversion and I provide the finishing ration at 110 a ton dry matter feed cost will be about .40 per pound of gain (Barley, beet pulp, midds, a little hay). Yardage charges .50 to .60 a day? If they gain 3.25 a day on the finishing ration (at least 75% angus with decent genetics), I'd be looking at .58 cents COG at the feedlot. So that averages .40 cents COG in feed with another .11 per pound in interest, marketing, trucking, death loss etc. I value the steers at 1.15 at 600 and fats at .96 at 1300 the gross margin is $550. Costs are $330. Please tell me how far I'm off so I just sell my hay and forget about this.

 

[dieselbeef]

gotta prove it..theyre still live animals :drink:

 

[bannedagain]

those 976's are good quality, low cab noise, easy on the fuel machines. Stupid exhaust stack could have been relocated.

 

[jkwilson]

How much are you paying yourself for your labor?

 

[TexasBred]

Is beet pulp that plentiful and cost effective in your area? It cost like rip down this way and is seldom fed to anything other than show calves. Looks like that alone would hurt your bottom line. Also don't get caught up like some in playing with numbers. It's awfully easy to simply adjust numbers to give us the answer we want rather than being realistic.