You make a good point. What jumps out at me is that those cow/calf people selling a 500lb calf at 1.10 for $550. or a 600lb calf at .90 (also about $550.) or anything in this ball park can't even pay the cost to maintain that cow for the year, let alone cover expenses on the calf for part of the year. The conclusion I come to is that if one really accounts for costs, there is no way for most folks to turn a significant, real profit selling calves in our current cost and price structure. Yes if you are using paid-for land and just looking at cash flow rather than total costs, ok you can show some cash. But there is a very important difference between cash flow and profit. You can have some positive cash flow but still be in a loss. Conversely you can show a paper profit but have no cash... Jim at Dawn
Edited by Jim 3/8/2010 16:28
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