|
Dougherty, IA | I have looked at this too and I just don't think I have the deep pockets or guts to play the feeder game.
I am looking at two things, pretty much mostly to minimize risk. The turns will be slower, but I am thinking less turns, less head run through, less risk is the way to do it for a young guy in this market.
1) Buy bottle calves from dairy farm and feed all the way out. This wont require much hay (besides a little waterway grass hay) and the equipment involved doesn't take a large investment. By taking the calves from birth to finish, it will take a long time to get your money back, but you are minimizing risk by owning the animal through the whole process. The guy that does the bottle calf things tries to make $50, the backgrounder tries to make $75, and the finisher tries to make $75....why not combine all those and make the entire $200 yourself? If one part of the operation goes bad hopefully the others can bail you out.
2) Buy real light calves (300lbs) to graze your wheat or rye cover crop in the fall. In the spring bring them into the lot to finish with your corn. Same concept from above...by owning the animal longer you will have a lower risk.
I think the best bet is buying cows but they aren't cheap and pasture is hard to find in the Midwest. | |
|
feeder cattle lot economics
