The reasons for profit are uncovered through keeping records.
The cost of production has far more to do with farm profitability than does the value or volume of your production. This statement is proven by Kansas State University (KSU) in a recent study.
The study compares characteristics of high, medium and low profit beef producers.
Here in Virginia, we know there are premiums to be had in the feeder cattle market place, discovered through the added value of health, source, sire and age verified marketing programs. Buyers show they are willing to offer premiums for these features and for the additional value they see in feeder cattle prepared for the feedlot through short co-mingled, feeding prior to sale. However, the Kansas study suggests we can make nearly three times as much difference in our bottom line through cost savings.
KSU Department of Economics offers its beef producers the opportunity to enroll their herds in their Farm Management Association. A program with cow-calf enterprise records accumulated over 32 years, used to evaluate and compare members. Virginia offers similar management services under the Beef Management Institute records program. The intent is similar - keep records, use records, compare records from multiple producers to evaluate differences and identify reasons for profitability.
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