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Beginners Board
Setting on their hay
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<blockquote data-quote="LFF" data-source="post: 414247" data-attributes="member: 1147"><p>I don't like the cost of high priced hay either, but lets look at it from a different angle. Suppose that the feedlots and packers have a very bad shortage of beef from the previous year. Would you as a cattle supplier price your calves cheaper because of their need or would you expect them to pay a much higher price just so you can make more money? I believe that the supply and demand principles will take some time to adjust , and I expect higher hay prices than proir years to be normal in the future. I don't see how we as beef producers can supply the packers with calves at the current cost of production and make any money for our efforts. A normal profit for the average farmer is about 100 dollar per cow, you can forget any profit at the high hay cost that is being mentioned.</p></blockquote><p></p>
[QUOTE="LFF, post: 414247, member: 1147"] I don't like the cost of high priced hay either, but lets look at it from a different angle. Suppose that the feedlots and packers have a very bad shortage of beef from the previous year. Would you as a cattle supplier price your calves cheaper because of their need or would you expect them to pay a much higher price just so you can make more money? I believe that the supply and demand principles will take some time to adjust , and I expect higher hay prices than proir years to be normal in the future. I don't see how we as beef producers can supply the packers with calves at the current cost of production and make any money for our efforts. A normal profit for the average farmer is about 100 dollar per cow, you can forget any profit at the high hay cost that is being mentioned. [/QUOTE]
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