competition?

[cowman]

linda: Getting bigger does lower your per unit cost, but yes there is the diminishing return thing. Probably if you are up to 150 cows adding another 100 is possible with the same equipment(providing you weren't already at the breaking point).
The really limiting factor is labor. You can only do so much and then you need hired help.
Over the years I have had employees in my lease business and usually it is a real pain. I have found that sub-contracting out some work is a lot easier. I do have one permanent old employee who is more like family than hired help. Another example- A few years ago I had a guy working for me cutting hay. Well he pretty well trashed the haybine! So now if I find I have no time for cutting or baling or picking up hay, I just hire a private contractor. He does a good job and it's all his equipment. Actually I haven't had to do this the last two years as my son is home now and he does most of the work.

[mbfarmer]

We have just done what cowman is talking about. Last fall we had 150 cow, leased an additional 116 cows during the winter. So we calved out 260. Equipment wise we did not have to upgrade a thing. Labor wise...it does not take long to put out another 3 to 4 bales a day. The critical point I can see is crossing that line where you need to hire someone to get the work done. Not may people will stay around for just part time work. Inorder to keep someone good...you have to pay good. Does that mean having to get bigger again in order to support the hired hand. Where does it stop??? However with the bigger herds, there are advantages. Bigger groups when selling...which the buyers like, less commissions per head when selling at the auction mart.

[cowman]

Another problem to getting bigger is usually you have to calve later. Which is okay if you can feed your calves out or live with a smaller return/cow. It is pretty difficult to calve in Jan./Feb. if you have large numbers and no help. I think last year the bigger calves really paid off. For about ten years the industry had stopped paying a premium for those big crossbred calves, but it sure turned around last year! After years of buyers telling us we had to go to a smaller(angus type)animal that would fit in a box! Now that we've bred our cattle down to the point where they are all small suddenly they want those big cross breds again! What they really want is an excuse to screw us!