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If you raise
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Brian Smith
Posted 12/19/2012 11:11 (#2761545 - in reply to #2760823)
Subject: I would respectfully add


If you are not making money on any business unit(s) then continuing to operate them should be classified as your hobby. With the money making unit(s) as your business.

If you can't make money on the land, feed, and/or the cattle then you are financially better off to get rid of that part of the business. If it's feed then purchase the feed and use the capital/time put into that business entity towards the business unit that does make you money. This also includes land rental rates...if you own land it better be making you money too.

This is how all successful businesses look at themselves when they have multiple options for inputs and salable items.

Note: This assumes that this information is based on more than one year and/or long term projections. Clearly there are bad years or anomalies that must be accounted for.
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