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N FLA | It's a commodity business and you need a competitive advantage to beat the market. Simply putting calves on feed and hedging them isn't really supposed to pay, the best I can tell. You are gambling the price will be there and the gurus are gambling it won't be there, and the farther out you hedge the more likely they won't subsidize your risk.
You might be buying inefficient calves, so you're taking an even bigger risk than average I would think. Maybe your advantage is putting together 80 calves that you can precondition and sell as a group. Perhaps you can buy them at 400@ $1.60 and sell at 500@ 1.70. It would be alot harder to lose $150 per head that way. And probably not take 6 months to do.
If it's any consolation I have $50k of farm losses on a personal loan and just keep cashflowing it and trying to get by. Chalk that up to an expensive lesson. | |
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Looking for some advice in the cattle business.?
