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How much to pay for a place to cash flow
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<blockquote data-quote="Stocker Steve" data-source="post: 991474" data-attributes="member: 1715"><p>Cattle eat a lot of feed so it is usually the biggest cost.</p><p>Some types of cattle need a different quality level of feed to be productive.</p><p>Looking at the cost of a pound of feed is a good way to compare options, AS LONG AS YOU compare the same correct quality of feed.</p><p></p><p>Along with the feed - - you need enough cast to pay for the labor and the interest and the principal and all the other overheads. This is where it can get tricky because most cattle operations are not labor efficient, and most land has been bid up by speculators. So some folks back calculate how much they can afford to pay for land (based on an estimated feed production level) and still pay all the bills.</p></blockquote><p></p>
[QUOTE="Stocker Steve, post: 991474, member: 1715"] Cattle eat a lot of feed so it is usually the biggest cost. Some types of cattle need a different quality level of feed to be productive. Looking at the cost of a pound of feed is a good way to compare options, AS LONG AS YOU compare the same correct quality of feed. Along with the feed - - you need enough cast to pay for the labor and the interest and the principal and all the other overheads. This is where it can get tricky because most cattle operations are not labor efficient, and most land has been bid up by speculators. So some folks back calculate how much they can afford to pay for land (based on an estimated feed production level) and still pay all the bills. [/QUOTE]
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How much to pay for a place to cash flow
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