Several years ago, I had a feed deal where we hauled about 13 tons a week from a frozen Vegetabl Packaging facility. It was mainly corn, peas, carots, all kernals and cob and no stalks. Cattle fed well on it, but ost it. No contract. they forced it on the guy taking the silage from the Processing plant so they would get paid for it. Well, you have to leave a trailer and be Johnny on the spot picking it up. Not enough feed to make it worth a big guys while, so we got it back.
This time, I have a contract so they can't take it out from under me again without at least offering...Last time, I didn't know the top management was unhappy I wasn't paying for it until I got the call, "We have someone paying $3.00/ton for it.....I never got a chance..Different management BTW...
It never worked for anyone else, they are too big. It ended up costing the factory a bnch before someone said, "Why not get ahold of Pat again, we never had any troubles when he was taking the waste"
Losing that the first time made me cautious. I am trying to get rid of a lt of the risks. Gettting it under contract was a big start.
Last time, we did it on the cheap. But it wasn't on property we owned and several times I ended up having to move. Also, I would lose some calves. Some of it was choking on cobs. Some of it was actually we didn't have a way to mix feed. So, when starting calves, we would dump some into hat and start them that way. Some would get onto it to hard and get feed sick. Once on it, we had hay and this corn waste free choice. Like I said, we lost some, but it was really cheap.
So, this time, I needed a newpartner. A guy I have been buying calves for. Money to get some property for one. But it is leveraged buying of property. I also bought a JD 4230 with a loader, buchket and grapples (used but well taken care of) and a used Supreme Mixer that has been totally rebuilt at the local New Holland/Supreme dealer.....
This means those cost are hgiher, but I feel w got rid o some risk and the cost of gain will still be very cheap.....
Also, a different partner.My last one provided a place to feed on rented land. Howeve, he is hard on equipment and left a pretty sour taste in the landlords mouth.....He is also a friend and we both were left out in the cold when we lost the deal last time. I wanted to bring him back in (I am the contact that gets the feed in these deals).....But....He doesn't have Capital and is hard on equipment. He also is always in a hurry to get to a sale, so....I don't think he always made the est cattle health decisions....
The new partner provides capital and can conveniently haul the feed....But we may need a third. Time-wise to fed and also someone that knows cattle.......I am not sure the numbers will let that work....BTW, the feed will start not very hot, I can mix a lot of hay to begin with. Ultimately, I think it will be a cow calf deal and we feed out our own calves..
It is the part of this deal where you see a lot of the obstacles. They can be overcome...I am looking forward to actually feeding the cattle....That is where you see results, not just potential problems...I have more inveted, but I think it will be a better program...It was successful before even with its shortcomings...
Not sure why I am posting this here..I value your thots, but also it is a reason I haven't been here much, just been wrapped up in thisand selling my beef,
PPRM
This time, I have a contract so they can't take it out from under me again without at least offering...Last time, I didn't know the top management was unhappy I wasn't paying for it until I got the call, "We have someone paying $3.00/ton for it.....I never got a chance..Different management BTW...
It never worked for anyone else, they are too big. It ended up costing the factory a bnch before someone said, "Why not get ahold of Pat again, we never had any troubles when he was taking the waste"
Losing that the first time made me cautious. I am trying to get rid of a lt of the risks. Gettting it under contract was a big start.
Last time, we did it on the cheap. But it wasn't on property we owned and several times I ended up having to move. Also, I would lose some calves. Some of it was choking on cobs. Some of it was actually we didn't have a way to mix feed. So, when starting calves, we would dump some into hat and start them that way. Some would get onto it to hard and get feed sick. Once on it, we had hay and this corn waste free choice. Like I said, we lost some, but it was really cheap.
So, this time, I needed a newpartner. A guy I have been buying calves for. Money to get some property for one. But it is leveraged buying of property. I also bought a JD 4230 with a loader, buchket and grapples (used but well taken care of) and a used Supreme Mixer that has been totally rebuilt at the local New Holland/Supreme dealer.....
This means those cost are hgiher, but I feel w got rid o some risk and the cost of gain will still be very cheap.....
Also, a different partner.My last one provided a place to feed on rented land. Howeve, he is hard on equipment and left a pretty sour taste in the landlords mouth.....He is also a friend and we both were left out in the cold when we lost the deal last time. I wanted to bring him back in (I am the contact that gets the feed in these deals).....But....He doesn't have Capital and is hard on equipment. He also is always in a hurry to get to a sale, so....I don't think he always made the est cattle health decisions....
The new partner provides capital and can conveniently haul the feed....But we may need a third. Time-wise to fed and also someone that knows cattle.......I am not sure the numbers will let that work....BTW, the feed will start not very hot, I can mix a lot of hay to begin with. Ultimately, I think it will be a cow calf deal and we feed out our own calves..
It is the part of this deal where you see a lot of the obstacles. They can be overcome...I am looking forward to actually feeding the cattle....That is where you see results, not just potential problems...I have more inveted, but I think it will be a better program...It was successful before even with its shortcomings...
Not sure why I am posting this here..I value your thots, but also it is a reason I haven't been here much, just been wrapped up in thisand selling my beef,
PPRM
I have two rules about partnerships.
