|
Saronville NE | With the backgrounding I do, its hard to protect yourself from the market, bout only way is in feed costs. Hired a nutritionist this year and really like what we are doing but heres my question, I know Ive asked something similiar before but got a different angle in my thoughts so asking. When pushing a pencil my absolute cheapest gain is what we are doing now, we dont push the backgrounders cause you cost yourself big time when fleshy when resell. Right now the high WDG ration were using, if use a 2.75 gain on heifers, Im figuring a COG of .98. If I use our traditional ration, my COG would be closer to $1.08 using a 2.25 gain. Yes the COG is cheaper which should in turn put money in your pocket, BUT I dont have to borrow money with my traditional ration, and the current ration Im on, is costing me about $11500 a month in WDG, (nothing Im sure to you bigger guys I know) but my thoughts are if the market goes south even farther, kinda goes back to Garvos GROSS dollars, if I dont borrow any extra money, Im still gonna lose money but I have less to pay back cause I didnt borrow it vs feeding what I raise and not borrowing extra money, so if the gross dollars at least pay the cattle note back, you are here to feed another day, whereas if the cattle and feed note dont get paid back you may not be here to feed another day. I understand it is NET at the end a guy is after, but if I had always made some NET, maybe just not as much in a good year, but yet protects yourself in a bad year is it tottally wrong to think that? Just curious, cause may run out of places to get WDG priced right if corn stays high, cause ethanol plants are closing down fast in our area. | |
|
Feed costs ?s Borrowed money vs feeding your raised feed?
