Farmer Jones recently purchased 225 head of heifers that weighed 600 pounds and the market price was $121/cwt.
The local truck driver can deliver them to grass pasture and haul 45,000 pounds per load at $300. The calves can be
on grass for 120 days where they will have a 2.0 A.D.G. at .40 cost/pound of gain. They will then be put into the
feedyard where they should gain 3.5 pounds per day at a cost of .78/pound of gain. The steers will be marketed at
1300. Don’t figure in shrink and assume no death loss.
FIGURE:
1.
Total cost of the calves
2.
Total trucking costs
3.
Wheat pasture feed costs
4.
Total Feed costs in the feedlot
5.
Break even price
6.
Total Profit/Loss
7. Days in the feedlot?