HDRider
Well-known member
I am still very new to the game and have years of learning ahead of me. As I have started I have seen the costs involved in starting and running an operation. I am still some distance away from my ultimate production goal.
My question is - How many producers operate at a profit? I am asking more related to cow/calf and maybe stocker and backgrounder operations. I am not asking about feed lots. I am not asking about registered seed stock, bulls, etc.
My guess at this point is beef is highly subsidized by the producer at certain stages of production. Subsidized by the producer means they (we, me) we are operating at a recurring loss.
I know some do this for tax purposes. I am not asking if it helps for tax purposes on other non-beef businesses.
I have been in other businesses (manufacturing) for many years. I understand very well about managing cost, capital expenses, operating expenses and all that.
So when you consider labor (yours, your wife and kids, along with hired help), capital (land, machinery, improvements) and operating expenses (feed, medicine, vet, death loss, etc.) are you in the black, or are we feeding America on our dime?
My question is - How many producers operate at a profit? I am asking more related to cow/calf and maybe stocker and backgrounder operations. I am not asking about feed lots. I am not asking about registered seed stock, bulls, etc.
My guess at this point is beef is highly subsidized by the producer at certain stages of production. Subsidized by the producer means they (we, me) we are operating at a recurring loss.
I know some do this for tax purposes. I am not asking if it helps for tax purposes on other non-beef businesses.
I have been in other businesses (manufacturing) for many years. I understand very well about managing cost, capital expenses, operating expenses and all that.
So when you consider labor (yours, your wife and kids, along with hired help), capital (land, machinery, improvements) and operating expenses (feed, medicine, vet, death loss, etc.) are you in the black, or are we feeding America on our dime?