Question for those who buy lightweights to feed
- Thread starter tom4018
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I do both 375 to 600-625, and sometimes purchase 500 and push to 725. I am satisfied with anything above $40 profit per head. $75 is my goal. Occasionally the market lines up perfectly, and I make $150. I have lost as well. Meds and feed have gone up so much the last couple of years, really cutting into the profit margin.
cross_7
Well-known member
I want to pencil a 20% return on investment(price paid for cattle)
That's 20% after vac, meds, if I have to buy feed
I don't charge land, equip and etc
If I can't see i can put weight on them cheap then I won't attempt it, too much risk for very little return
I have made 20% on good year with little inputs but I have gone in the hole too
Some people see small margins on large volumes of calves and make it work but Its not for me
That's 20% after vac, meds, if I have to buy feed
I don't charge land, equip and etc
If I can't see i can put weight on them cheap then I won't attempt it, too much risk for very little return
I have made 20% on good year with little inputs but I have gone in the hole too
Some people see small margins on large volumes of calves and make it work but Its not for me
denvermartinfarms
Well-known member
I genrally make atleast 20% profit over total investment,sometimes more some less but that is what i want to average as a base point.
I pecked at getting my taxes ready a little this morning. It rained here till lunch time. I'm not seeing a 20% return. I'm wondering if those that are netting $150 a piece are including fertilizer, fuel, overseeding, weed control etc. Mine tie up 40 acres of ground. There is a lot of annual expense on 40 acres.
cross_7
Well-known member
Bigfoot":13yiui14 said:
I don't charge it to the calves because I'm not doing anything extra for them.
The only thing I figure is what extra they cost me, If I don't buy stockers I turn the cows in on it or I may if I have the extra feed I may keep my calves a little longer and put on more weight
Now for taxes I charge all expenses to the cattle
TexasBred
Well-known member
Howdyjabo":1aa12pzk said:
Ditto[/quote]
Sounds good if you made $4-5 bucks a head on five thousand head.....sounds awful is you ahd a small "loss" $4-5 bucks a head on a five thousand head.
OP
OP
tom4018
Dumb Old Farmer
Average for last year and this year combined is $58 per head. Try to charge everything to them, all the feed and meds are for sure and try to charge so much a day for pasture, water and other things. Charge a mileage rate to pick them up and sell them. Kinda had Bigfoot's $75 goal also. Been trying to buy some to supplement the cow herd by having a full trailer load to haul when selling. Also allows me to buy feed in bulk to feed the cows some in the winter and grow a few heifers we keep.
I think I learn a little bit with each group of calves on what to buy or pass on. Made a few bad purchase that lost money on, if not for them average would have been over a $100 a head.
As a friend say, "A bought lesson is the one you remember."
I think I learn a little bit with each group of calves on what to buy or pass on. Made a few bad purchase that lost money on, if not for them average would have been over a $100 a head.
As a friend say, "A bought lesson is the one you remember."
cross_7
Well-known member
tom4018":17xybr56 said:
You can charge a for pasture, as an expense ?
So you charge x dollars day for pasture and paid to yourself so you still pay taxes on it either way right ?
Lane
Well-known member
I can't live and die with one group of calves. This spring we sold a couple of pot loads for more
profit than I have ever made, but this fall the worm has kind of turned and I sold probably the
best, most even set of steers I have ever fed for about one third the profit. I used to be able to
kind of guess the cattle cycle (barring world suprises) but this thing is playing out strange this year.
I just try to keep my eyes open and do as much research as I can and go with the flow. It seems
right now that they have beat back heifers and bigger calves and the lights are too high. Maybe
the new year will be better.
Lane
profit than I have ever made, but this fall the worm has kind of turned and I sold probably the
best, most even set of steers I have ever fed for about one third the profit. I used to be able to
kind of guess the cattle cycle (barring world suprises) but this thing is playing out strange this year.
I just try to keep my eyes open and do as much research as I can and go with the flow. It seems
right now that they have beat back heifers and bigger calves and the lights are too high. Maybe
the new year will be better.
Lane
TexasBred
Well-known member
Any idea what the diff. was?? Feed hasn't gone up and prices are still good.
Lane
Well-known member
I can tell you exactly what it was. Calves were bought during last fall runs and were about thirty
cents/pound cheaper. Also, feed was purchased early last fall in front of higher grain prices. I sold
those 7 wt. steers for $ 1.48/# .
The load I just sold were bought in late spring at higher prices and feed this year has been high.
I try and use whatever by-products I can and there have not been any real deals this year. Also,
on the steers I just sold the best bid I could get was $ 1.38/#. Like I said the market for heavier
calves (7-8 wts.) has not been as strong as the light calves.
You would think they would be wanting long-weaned, yearling steers that they didn't need to
feed long but they sure haven't been paying up for them like in the past. I saw unweaned 4-5 wt.
calves to go on wheat bring almost what the bigger yearlings were bringing.
Lane
cents/pound cheaper. Also, feed was purchased early last fall in front of higher grain prices. I sold
those 7 wt. steers for $ 1.48/# .
The load I just sold were bought in late spring at higher prices and feed this year has been high.
I try and use whatever by-products I can and there have not been any real deals this year. Also,
on the steers I just sold the best bid I could get was $ 1.38/#. Like I said the market for heavier
calves (7-8 wts.) has not been as strong as the light calves.
You would think they would be wanting long-weaned, yearling steers that they didn't need to
feed long but they sure haven't been paying up for them like in the past. I saw unweaned 4-5 wt.
calves to go on wheat bring almost what the bigger yearlings were bringing.
Lane
OP
OP
tom4018
Dumb Old Farmer
cross_7":14947wmk said:
I just figure the fertilizer for that ground and water. I charge feed, hay and meds to them. Just a way to track them seperate from the cows. Tax wise I just itemize my expense and let the pros handle it. I just try to track the feeders to see if I make or lose.
I would think you would set your lower limit of what is acceptable at what you could get from renting to a stocker operator. Even on a per pound basis you would need $75/hd to make it pay. Otherwise it turns to a one sided deal pretty quick.
Stocker Steve
Well-known member
tom4018":ai8bn6qj said:
We usually buy bulls at about 340# during the fall run - - and sell steers at about 820# the following August.
Land is a major limitation, and most of the profit is in the last 200# of pasture gain, so I focus on gross margin $ per acre.
I want it to beat the gross margin per acre for corn grain.
