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Raising stockers on the gain
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<blockquote data-quote="Dave" data-source="post: 450902" data-attributes="member: 498"><p>I have never done this but I have a good friend who does. The advantage is that you don't have money invested in cattle. If the market goes down it doesn't hurt you. </p><p>The disadvantage is you just get paid on the gain. Slow growing or sick cattle you don't lose money on the cattle but you lose the oppurtunity. Locally they have been paying about 40 cents a pound for the gain. If you own the stockers that pound is certainly worth more than 40 cents. You have to do a real good job of grazing to get a 2 pound per head per day average. When pushing the pencil on this I would figure closer to a 1.5 pound per day average.</p><p>Again speaking locally most of the cattle on this type of deal come from the large feedlots. They own thousands of cattle so getting poor cattle is a little less likely but it does happen. On an up note with the price of gain being so high in feedlots now, there may be more chances to do this and the rates should be going up.</p></blockquote><p></p>
[QUOTE="Dave, post: 450902, member: 498"] I have never done this but I have a good friend who does. The advantage is that you don't have money invested in cattle. If the market goes down it doesn't hurt you. The disadvantage is you just get paid on the gain. Slow growing or sick cattle you don't lose money on the cattle but you lose the oppurtunity. Locally they have been paying about 40 cents a pound for the gain. If you own the stockers that pound is certainly worth more than 40 cents. You have to do a real good job of grazing to get a 2 pound per head per day average. When pushing the pencil on this I would figure closer to a 1.5 pound per day average. Again speaking locally most of the cattle on this type of deal come from the large feedlots. They own thousands of cattle so getting poor cattle is a little less likely but it does happen. On an up note with the price of gain being so high in feedlots now, there may be more chances to do this and the rates should be going up. [/QUOTE]
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Raising stockers on the gain
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