What is your operation? Pasture Stocker, Pasture Backgrounder, Cow/Calf, Custom Grazer, Grass Fed.
What do all of these have in common?
GRASS.
You are essentially a "Grass Feedlot".
Now is your operation running at its peak efficiency of turning that GRASS into PROFIT?
The feedlot model of business is based on "Efficient use of all assets including equity, labor, equipment, & land" to produce a profit.
By using the feedlot business model, ranchers can begin to maximize their assets to obtain the highest level of profits.
Focusing on more then just 1 (one) enterprise and/or switching enterprises all together in your operation may produce more profit.
Come up with different enterprises and pencil them out.
Take Care
The NewAg is Here
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Considering how you harvet that grass feedlot is important too. A ranch is nothing but a collection of AUM's (Animal Unit Months). 1 AUM is equal to about 790 lbs of grass. I just did an excersize and took a ranch that produces about 3,000 AUMs. Harvest that forage with about 190 cows, sell 150 calves annually and gross ~$95 K (granted, not counting cull cows).
Harvest that same ranch with 360 stockers placed at 600 for $1.10, off at 900 for $1.00 and gross ~$137K.
Why are there so many cow-calf operations and so few stocker operations during these time of high cost of gain in the feedlot?
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