Profit in the cattle industry

[somn]

I'm not trying to prove you wrong I was just trying to understand your statement about feedlots going broke by sitting empty. You still haven't explained that yet. The way I understand what your saying it is better to lose 20 dollars per head plus expenses instead of expenses only. Crazy Texas math I guess. A loss is a loss but losing twice is worse in my book. Maybe instead of figuring things off the top of your head you should get a big chief tablet and do it on paper once and a while you might have a bit more success in the industry.

ok someone needs to read what is said.it just dawned on me that you thought i said lose $20 a hd on fed cattle.when i did not say that at all.read my lippsi said feedlots make between $20 an $80 a hd on cattle going to the packers.you need to watch what you say to people.

Your completly wrong I never thought you said anything about 20 dollars. I said I would rather leave my yard set empty and borrow the money to pay expenses instead of borrowing money to pay the $20.00 per head loss plus expenses. And you continued to tell me that your way was better than my way.

 

[Wewild]

ok someone needs to read what is said.it just dawned on me that you thought i said lose $20 a hd on fed cattle.when i did not say that at all.read my lippsi said feedlots make between $20 an $80 a hd on cattle going to the packers.you need to watch what you say to people.

I did read what you said.

I read what he said.

somn seems to think he can weather the reduced cash flow by eliminating his varaible cost and reducing his fixed cost until the time is right to get back in. He considers this as an alternative to losing more by buying high and paying higher variable costs.

I agree with somn.

 

[mwj]

I think bigbulls prob. is that he thinks there is no way the feedlots can make less than $20 per head. If he thinks that is the case he should be building lots and buying cattle :cboy: I sure hope he has an understanding banker :roll: Throwing good money after bad is not a good idea of gitting ahead in the cattle buissness.

 

[bigbull338]

I think bigbulls prob. is that he thinks there is no way the feedlots can make less than $20 per head. If he thinks that is the case he should be building lots and buying cattle :cboy: I sure hope he has an understanding banker :roll: Throwing good money after bad is not a good idea of gitting ahead in the cattle buissness.

i have no problem getting the money.my banker just asks how much i need or want.an what im spending it on an thats it.because he knows im quick to pay it off.usual in less time than he wants it payed off.

 

[movin' on]

I agree with you somn. I lease a backgrounding yard and am fairly empty right now. I've had a few offers from guys wanting to put calves in here on a per gain basis in which I would lose money. I am not going to feed cattle just for the sake of feeding cattle. I would much rather sit idle for a month or two and use my operating note to pay for life than to be super busy, lose money and use up my operating note!!!!!! Sure, there is no way a feedyard or myself can make money with empty pens, but why feed 'em just to lose money???? It'd be like a truck driver just getting in his truck and driving. No load or destination.....just driving!