Profit when buying all your feed

[LJCC]

Is there profit in feeding out cattle when you have to buy 100% of your feed? I know the market (both feed and cattle) goes up and down; but were are talking on average. Everyone I talk to says that in order to make money you have to have tillable to produce the feed. But there would be no point in feeding cattle out if you didn't add any value to your product. So what are your thoughts on this subject? The cattle would be Holstien steers on full grain. I'd also have the option to buy beet pulp, sweet corn silage, and wet cake. Thanks for the input and advice.

 

[Bigfoot]

If someone were to buy 50 pound sacks of feed, they would not make any money. Feed needs to be bought in bulk.

Many differ with me on this opinion. If you raise corn to feed to your cattle. If corn is selling for $4.50 a bushel on the day you feed a bushel, then you fed $4.50. It doesn't matter if you raised it for less or not.

 

[LJCC]

That's exactly my thought, Bigfoot. So, how much feed does it take to feed a Holstien from 500lbs to finish weight? (Ground corn/pellet mix, full feed) Should I offer free choice hay as well, or is it better to only have grain in front of them?

 

[Tim/South]

The difference in two years.
Last year corn prices were high. Calf prices dropped because the cost to feed them out had skyrocketed.
This year corn is cheap and feeders can afford to feed. Cattle prices are setting records. Granted the drought and low cattle numbers are in the mix.
It is hard to get an average on whether is would be cheaper to grow or by. Weather, yield, demand, fuel price increase are inconsistent. We just learn to step up to the plate and swing at the pitches we are thrown.

My opinion is that I need to be as self sufficient as I can be. My grandfather raised the majority of his feed and did well. My friends who have been able to last for years are frugal and as self sufficient as possible.
The one change I have seen locally in feeding is that most of us here have incorporated brewers grain into our plans.

 

[Waterway65]

One thing hang out at the sale barn. Some of those old boys that have been doing what you want to do are worth getting to know! They can crunch numbers in their heads as they bid and tell you the profit margin when they win the bid. I admire them but am sure not in their league. Mel

 

[Son of Butch]

Is there profit in feeding out cattle when you have to buy 100% of your feed? The cattle would be Holstein steers on full grain. I'd also have the option to buy, sweet corn silage,

I would not want to get involved in feeding out cattle on 100% purchased feed.
My view is that we are selling our corn crop through the steers, adding value to the corn or value per acre of crop production.
I quoted you mentioning sweet corn silage. You don't say where you are located, so it may not apply, but the sweet corn silage
sold in our area comes with so much water added the guys trying it have not been happy.
I would caution you that it may look cheap on paper, but results may not pan out in the feedlot.
I would advise you to seek out who is feeding it and why in your area to get their advice before adding it.

 

[sim.-ang.king]

That's exactly my thought, Bigfoot. So, how much feed does it take to feed a Holstien from 500lbs to finish weight? (Ground corn/pellet mix, full feed) Should I offer free choice hay as well, or is it better to only have grain in front of them?

100 bushels of corn plus a $100 bill is the garvo method for figuring cost to feed beef steers. Dairy steers eat more, so add 25 bushels to be safe.

125 x 4.50 + $100= $662.5 to feed to finish.

 

[LJCC]

Thanks for the responses everyone! I live in Minnesota, and in my opinion there is plenty of opportunity here since there are still plenty of dairies in production. What would you guys suggest for vaccinations to give them? Right now I give them BoviShield 5 and Ultrabac 7.

 

[Calhoun Farm]

Keep some draxxin on hand.

 

[John SD]

If someone were to buy 50 pound sacks of feed, they would not make any money. Feed needs to be bought in bulk.

Many differ with me on this opinion. If you raise corn to feed to your cattle. If corn is selling for $4.50 a bushel on the day you feed a bushel, then you fed $4.50. It doesn't matter if you raised it for less or not.

+1 on both counts. :nod:

I might add that when you purchase feed, get as many bids on it as you can and have enough storage available for delivered truckloads, or haul the feed yourself if you have the ability and if it pencils out better.

As to vaccinations, I would suggest pasteurella and H somnus vaccination also along with what you already listed, and parasite control.

Implant or not, depending on the market you are aiming for.

 

[Howdyjabo]

Right now you probably can get by with all bought feed. When things tighten again its the people with an edge(cheaper feed/premium market) that will stay in business.

Just on't put much into infrastructure that needs to be paid for- which is what forces you to stay in operation when you are loosing money.
Get in and get out with market conditions .

 

[smnherf]

The only thing good about raising your own feed is that it will take you longer to go broke. Ha ha.
Just kidding.
The cattle feeding business is strictly a margin based business. You purchase your inputs for X add your costs and you sell the output for Y and hopefully the Y is the larger number. The better job you can do at controlling those costs will determine whether you make any money

I don't recommend starting with Holsteins either. There is more management to them and in order to get top dollar for fed steins, you need to push them really hard on a really high energy ration for a long time in order for them to get enough cover so they can make choice grade.

 

[LJCC]

I'll add some more information for you guys to ponder. I've raised a couple dozen Holsteins from 300-750lbs for the last 4 or so years with okay luck. Every year is a learning experience. My goal now is to buy ten acres and start trying to build a feedlot up as I expand my beef herd. I don't have the ability to raise any feed do to the costs that come along with it. At the very most I could maybe rent ten or so acres for silage. This is just a hobby for now as I have a full time job.

 

[LJCC]

Also, I have the ability to hold about 10 tons of feed at a time, (I buy way less) which I guess would be considered bulk. My last load was 11.3 cents/lb or $226.81/ton.

 

[TexasBred]

Also, I have the ability to hold about 10 tons of feed at a time, (I buy way less) which I guess would be considered bulk. My last load was 11.3 cents/lb or $226.81/ton.

Dirt cheap...what ingredients were in it?

 

[LJCC]

1800lbs of ground corn and 200lbs of medicated supplement per ton. The supplement is 42% crude protein, 8% calcium. Made up of SBM, DDGS, Canola, and a ton of other stuff.

 

[ChrisB]

In regards to your original question - I've been raising corn to feed my calves out and it has worked out very well. The only problem is that I really don't enjoy raising corn that much so I've been wondering if I would be better off running more cows and buying corn. One thing that may give you an advantage is putting up a grain bin with an aeration floor in it right next to your feed bunks. In the fall you can buy wet corn right out of the field and air dry it. You could mix in your supplement as you fill 5 gallon pails from the bin. Put them on full feed and your chores would take about 5 minutes per day. I been feeding 40-50 head out the last few years and I can feed them in 15-20 minutes. These are colored calves so I also give them a bale of junk hay or corn stalks too; but Holsteins wouldn't need anything else.

Whether you make a profit by buying all your feed will vary year to year as I'm sure you know. But if your lucky the guy farming across the road either hauls his crop 20 miles to the local grain elevator or back to his farm to store and dry. He would probably sell to you for the same price as he's getting at the elevator and it will be more convenient to him if you are set up for unloading.

I started thinking about it last fall when I was at the local mill and a farmer came in to see what they were paying for corn. He had to pay 40 cents for how wet it was and the base price was 30 cents behind Minneapolis. I talked to a local big time operator who has no on farm storage and he said he would be glad to give me the same price as he was getting as it would save him 30 miles of driving.

 

[Stocker Steve]

Whether you make a profit by buying all your feed will vary year to year as I'm sure you know.

Ten years ago MN hay and grain prices were less than the cost of production. But times have changed.
Then MN ethanol plant by products were cheap for a while. But times have changed.
Recently MN corn silage was the best local deal. But the big questions are the scale of the operation - - and can you make money marketing.

Seems like you either need a TMR and a skid steer to handle semi loads of inputs - - and contact pot loads out.
Otherwise - - some portable shelters, panels, and 5 gallon buckets - - and haul small trailer loads to a selling barn.

 

[LJCC]

I have a skid loader and a decent sized gooseneck already. My biggest problem is more along the line of being able to feed a semiload before it goes bad. For instance, a load of wet beet pulp will go bad in a couple weeks or so. How many steers does it take to burn through the loads fast enough so that spoilage doesn't take place?

 

[Stocker Steve]

Many lots here are seasonal, and it takes a lot time for feed to rot when you are in an Arctic Vortex.
A few over the piles with hay or salt.