kpb, Yes I could probably make more money custom grazing yearlings intensively - it's not what I want to do although it offers me the chance to winter in Arizona!
The main reason I don't choose this option is because of my purebred Luing cattle - I came here to expand this breed in North America and I need a cow herd to do it. Although I claim to be a grassfarmer first and cattleman second I do have a soft spot for cows and would not get the same satisfaction out of someone running elses yearlings. A cow herd also lets you "grow" another asset. I've seen the capital appreciation possible in a cow herd when you build it up in size and quality from a given point. Of course to realise this profit you need to sell - but at least if you have the herd you have that extra option. It's all part of building a well rounded Ag portfolio in my books.
I agree cswilson that grass has to pencil in before it is the #1 choice. I reckon the fertiliser doesn't pencil in at the moment beyond providing for the season when cows are actually rearing a calf. I could buy feed cheaper last winter than I could grow extra banked grass using fertiliser. This must say something about the guys growing the feed to sell - they afterall are using fertiliser AND expensive metal to harvest and deliver it to me cheaper than I can grow extra grass. Rather them than me!
The main reason I don't choose this option is because of my purebred Luing cattle - I came here to expand this breed in North America and I need a cow herd to do it. Although I claim to be a grassfarmer first and cattleman second I do have a soft spot for cows and would not get the same satisfaction out of someone running elses yearlings. A cow herd also lets you "grow" another asset. I've seen the capital appreciation possible in a cow herd when you build it up in size and quality from a given point. Of course to realise this profit you need to sell - but at least if you have the herd you have that extra option. It's all part of building a well rounded Ag portfolio in my books.
I agree cswilson that grass has to pencil in before it is the #1 choice. I reckon the fertiliser doesn't pencil in at the moment beyond providing for the season when cows are actually rearing a calf. I could buy feed cheaper last winter than I could grow extra banked grass using fertiliser. This must say something about the guys growing the feed to sell - they afterall are using fertiliser AND expensive metal to harvest and deliver it to me cheaper than I can grow extra grass. Rather them than me!
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