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Producers Panic as Ethanol Mandate Loses Support
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<blockquote data-quote="NC Liz 2" data-source="post: 1087491" data-attributes="member: 21522"><p>OK, but you probably won't understand my answer.</p><p></p><p>It's called "shared cost".</p><p>At 50 head my profit margin is higher then with 100 head with the 3 Fs at present cost levels.</p><p>At 50 head my shared cost is right around 35% of production, where as at 100 head my shared cost is around 55% of production.</p><p>Therefore it is more economical to stay around 50 head and using less feed stuff (hay etc )less fuel, and less fertilizer.</p><p></p><p>What I am contemplating for this year is to wean my calves later (600 + lbs ) and hold them as feeders and maybe even buying some feeders and running them in my hay fields and buying my hay.</p><p>That will cuts down on my fuel and fertilizer costs, while production goes up.</p><p>Running feeders on my hay field will also add some cost free fertilizer to them for next year. </p><p></p><p>IMO that should move my shared cost down to a more acceptable level. Around 47%.</p><p>Now I am working on getting my feed costs down ( not including hay ).</p><p>Best price I have so far is pelleted 14% protein @ $.14 per lb in bulk.</p><p>Any suggestions? </p><p>Liz</p></blockquote><p></p>
[QUOTE="NC Liz 2, post: 1087491, member: 21522"] OK, but you probably won't understand my answer. It's called “shared cost”. At 50 head my profit margin is higher then with 100 head with the 3 Fs at present cost levels. At 50 head my shared cost is right around 35% of production, where as at 100 head my shared cost is around 55% of production. Therefore it is more economical to stay around 50 head and using less feed stuff (hay etc )less fuel, and less fertilizer. What I am contemplating for this year is to wean my calves later (600 + lbs ) and hold them as feeders and maybe even buying some feeders and running them in my hay fields and buying my hay. That will cuts down on my fuel and fertilizer costs, while production goes up. Running feeders on my hay field will also add some cost free fertilizer to them for next year. IMO that should move my shared cost down to a more acceptable level. Around 47%. Now I am working on getting my feed costs down ( not including hay ). Best price I have so far is pelleted 14% protein @ $.14 per lb in bulk. Any suggestions? Liz [/QUOTE]
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Producers Panic as Ethanol Mandate Loses Support
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