Uh-oh, a farmer's making a buck. Everybody drag him down!
I do not understand this mentality. It's one of the main reasons I did not stay on the farm when I graduated from college. You can't make money and when you do all your fellow farmers do their best to make sure it doesn't happen again.
"Feedlot farming" is a lot like a variable rate mortgage. When grain prices are low, you can afford to buy all your feed instead of growing it. When grain prices are high, you lose your shirt!
The only way to do it right now is to grow your own feed. If you can't grow enough of your own feed to support your herd, you have too many animals and you need to get rid of some.
Don't cry that the grain farmers should be giving you CHARITY because they're making money and you're not. You chose the flawed business model that only works when commodity prices are low.
In reality you may end up making MORE money with fewer animals, because you've lowered the supply. There will be a short-term glut on the market, but 6 months down the road there will be a meat shortage and prices will skyrocket!
Farmers don't typically understand basic economics. Their answer to dropping prices is to increase production, same as if the prices are rising... I just don't get it.
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