$ 8.00 wheat

[GDR]

$5+US/bus corn, $6.50 feed barley or $7.50/bus feed wheat delivered to Lethbridge. All expensive. Don't know how they're staying in the black. Local rancher nearly fell over when I told him what feed barley was. He was looking for more to get through winter, but was going to weigh his options.

Who says they are in the black. You can't stop feeding just because of negative margins. As much as I like these prices if we lose feeding capacity it is not coming back and is detrimental to long term grain prices. We all need to be successful because we are integrated.

[mcfarms]

8.30 1 cwrs 13.5 contract picked up overnight.

[bucket]

Who says they are in the black. You can't stop feeding just because of negative margins. As much as I like these prices if we lose feeding capacity it is not coming back and is detrimental to long term grain prices. We all need to be successful because we are integrated.

Serfas feedlot has to be a moneymaker....they grew their own feed on the 50000 acres...and will be buying calves at a reasonable price....past the winter weather....they should have a good start...

[Sodbuster]

8.30 1 cwrs 13.5 contract picked up overnight.

Alberta price?

[AlbertaFarmer5]

Who says they are in the black. You can't stop feeding just because of negative margins. As much as I like these prices if we lose feeding capacity it is not coming back and is detrimental to long term grain prices. We all need to be successful because we are integrated.

I've been told that feedlots lose money almost as often as they make money. As long as it averages out to profit in the long run it all works out. With the tax bill, staff that need to be kept busy, fixed overhead, home grown silage/feed that needs to be used, apparently better off keeping the pens full regardless of cost or loss.

[shtferbrains]

Used to be lots of deferred income tax money trapped going around and around in the feedlots.
Is that still happening?

[GDR]

I've been told that feedlots lose money almost as often as they make money. As long as it averages out to profit in the long run it all works out. With the tax bill, staff that need to be kept busy, fixed overhead, home grown silage/feed that needs to be used, apparently better off keeping the pens full regardless of cost or loss.

For sure that's the situation but no one is too big to break and how long can it go on. Last year was tough on those guys, especially once covid hit. This year feed price. Like Shitferbrain's post only thing keeping them going is tax avoidance.

I know a few guys that have quit feeding the last couple years because the margins are tough and for them selling grain is less risky than feeding. All small guys feeding a few thousand head but they add up in a hurry.

[bucket]

8 dollar 3cwad for new crop..does that count for this thread

[Old Cowzilla]

Used to be lots of deferred income tax money trapped going around and around in the feedlots.
Is that still happening?

Not likely as much oil patch money that's for sure. Don't todays oilpatch kids just upgrade the Airdrill instead of buying a couple of potloads of wetnoses?

[mcfarms]

Alberta price?

yes it was