Wednesday, May 2, 2012

Are all those cattle yours?

One of the biggest questions Jake and I get about our feed yard in Nebraska is "are all those cattle yours?".  4+ Feeders is permitted to hold 5000 head.  That just means the government gave us a permit to hold 5000 head of cattle.  However our bunk space only allows us to feed around 3000. Someday we will have pen and bunk space for 5000.  Each animal needs about 12-15 inches of bunk in order have room to be fed.

Jake and I purchased the feed yard and have fed a few cattle (like under 100) along the way.  A typical pen will hold about 130 calves that weigh between 400-800 pounds.  If you purchase 100 calves at 500 pounds in today's market that would cost you about $115,000 you would also have to purchase the feed.  The bank would have to bank roll this until you were able to market the cattle at a heavier weight.  Unless of course you have 115,000 plus cost of feed buried in your back yard. For all of my readers who like to go to Vegas, call me and we will put you in cattle gambling market. Jake would like me to add that in the current economical situation there is a better turn on your investment feeding cattle then there is in the stock market.  

The answer is usually none to very few are actually our cattle.  As Jake and I get older and continue to grow our credit we hope to be able to feed cattle of our own.  For now we have people we work with that either buy cattle and we grow them and help market them to another yard to be finished for market.  We also have customers that would like their own cattle fed, but do not have the facilities to feed them their selves so they send them to us.  In both cases the customer pays, feed, medical and health, and yardage to 4+Feeders.  

1 comment:

  1. Did you see this article?

    Maybe more investors should get involved in agriculture. People don't realize how much capital it takes to grow in this industry!