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I would be starting this from the ground up, the ration will be corn based. I would eventually like to have a 1500 head capacity yard. I am also considering vaccinating cattle, producing/selling hay and maybe selling my cattle ration. I have animal science degree and worked in feed yards for about 5 years. I am just wondering what opinions or advice anybody can give me on this business or how I can get it started. Thank you for your thoughts, Jerry
I don't have any experience in the feed yard business, but I can tell you that you need to make a spreadsheet and put together information on what your costs are for feed, equipment, utilities, cattle, etc....then put in how much you expect to make on your cattle and see if you are going to make money.....
thanks .....I do have a business plan already and have some rough figures. I think i can make around $30/head, but I'm not sure if that amount would be good enough for the banks or an investor. I'm also not sure whether some of my estimates for building the facility are hi or lo, I have had some difficulty getting estimates on some of the construction cost. Thanks though for your comments...Jerry
Jerry,
The only way you can really make money is if you are fitting them for someone else. The federal regulations on feedlots are getting very tight too. Most people don't think about that. But the new regulations are going to be tough to conform to.
Making $30/head will work IF IF IF you hit the prices right. AND AND AND you get no sick cattle and you get no death. That's extremely hard to do. Plus figure your time. There is no way to run it very profitably if you are not there 24/7. You have to catch those cattle immediately at the first sign of infection or you are going to lose bigtime. And if you get anything go through your yard you may lose overall weight in 3 months.
Feeding out cattle on the short is VERY VERY risky. It's risky doing it on the long but you do have some more time to make up losses. On the short it's tough even if everything goes 100% right.