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Galena IL | 1) I think I need to explain that a subsidy is not free money. It is paying you to do something. I bought LRP on 100 head of 1600 lbs cattle, I pay $10500 the government pays $5000. I agree to sell 100 head between the 23 of July and October 23. The insurance company guarantees me $191 CME price when I sell which is $3060/ head. Why would the Government do that? Because I produced 100,000 of boxed beef @ a cost to the government of $0.05 / lbs. to keep people fed.
2) My numbers. remember corn is not $6.00 anymore. $1,700 calf. 1,000 lbs of gain X $0.65 = $650. $150 other expenses. $80 interest. $ 105 LRP = $2685 $3060 - $2685 = $375 per head or $37500 for the pen. I've fed a lot of cattle that I didn't make $50/ head I'm not going to pass on $300
3) No country has ever survived with high priced food and the government knows that. I have never got a government check that I didn't have to do something to earn it.... Dennis | |
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Feeders leaving the pen empty. Something to thing about
