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Raising stockers on the gain
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<blockquote data-quote="cmjust0" data-source="post: 450887" data-attributes="member: 2882"><p>I'm assuming by gain, you're referring to weight -- not profit.. Otherwise, they could just turn your grass into enough cash to buy stuff they needed, then say "Sorry, we only broke even this year."</p><p></p><p>But even if we're talking weight, you're still at the mercy of someone else's talent for raising cattle and/or making good business decisions... Think about this: If you had enough calves that you could split them between two locations, and if one of those locations was willing to accept payment based on weight gain, would you send your best or worst gainers to the other place? If it were me, I'd maximize profit by sending my worst so the final bill would be lower, and I'd let my best graze the "free" grass at my own place... </p><p></p><p>Instead, why not shift the risk to the producer -- where it belongs -- by setting a fair price and leasing it out? That way, if someone with no-good stockers comes along and eats all your grass for naught, you still get paid and he takes the loss for choosing no-good stockers.</p></blockquote><p></p>
[QUOTE="cmjust0, post: 450887, member: 2882"] I'm assuming by gain, you're referring to weight -- not profit.. Otherwise, they could just turn your grass into enough cash to buy stuff they needed, then say "Sorry, we only broke even this year." But even if we're talking weight, you're still at the mercy of someone else's talent for raising cattle and/or making good business decisions... Think about this: If you had enough calves that you could split them between two locations, and if one of those locations was willing to accept payment based on weight gain, would you send your best or worst gainers to the other place? If it were me, I'd maximize profit by sending my worst so the final bill would be lower, and I'd let my best graze the "free" grass at my own place... Instead, why not shift the risk to the producer -- where it belongs -- by setting a fair price and leasing it out? That way, if someone with no-good stockers comes along and eats all your grass for naught, you still get paid and he takes the loss for choosing no-good stockers. [/QUOTE]
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Raising stockers on the gain
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