hooknline":4mmj0ltz said:
I thought there would be a few different schools of thought hence the question. I just got to wondering. Keep the the insights coming
If you think about it for a minute the answer is just common sense. If you grow feed yourself no matter what the feed, grass ,corn, hay, etc., you cut out the middleman. The producers of feed have all the same expenses of production,(which will be include in the cost to you) but then you must pay for their overhead, shipping, and profit.
There is another important thing that you have to understand and is the reason that some find it expensive to fertilize. Most crop farmers today have a very good understanding of soil and plant system and therefore can raise these crops more efficiently than some cattlemen can grow grass. Crop farmers have a very good understanding of inputs and outputs concerning fertilizer. Cattlemen seem to focus more on there cattle. Cattle are nothing more than the machines that take grass or feed and inevitably turn it into cash. Therefore we have the adage "We are grass farmers first." So learning about how to grow grass, our raw product, more efficiently will cut our costs and give us more volume to feed the machines.
So then the question arises, so how does a feed lot make money? They make money by controlling their cost of feed, contract purchases and volume purchasing. They also have a very good understanding of how the rumen system works and the nutritional requirements of cattle. They know what cattle to purchase for their market. They increase the value of the animal and profit from it.