Hello!  I'm back.  And have I got a good one for you today.  A pal from Missouri sent me a news release from the Missouri Agricultural and Small Business Development Authority (How scary is that name?  "We're here from the MASBDA - and we're here to help.") reminding cattlemen in Missouri to sign up for the "Missouri Qualified Beef Tax Credits" program.  Apparently, guys who sign up for this program get an extra $0.10 per pound to put an additional 200 pounds of gain on their stockers in Missouri. 

Now watch me tear this to shreds before your very eyes.

Patton, MO, Monday, March 8, 2010

526# top-quality steers go for $108.02 or $568.19 per head

723# top-quality steers go for $88.78 or $641.88 per head

If we take $641.88 minus $568.19 we see that the market is currently paying $73.69 for the 197 pounds of gain from 526# up to 723#. 

$73.69 divided by 197 pounds = $0.37 cents per pound.  In other words, the market will cover the first $0.37 of your cost structure, but beyond that, you're on your own, Lumpy Rutherford.  Let's say Lumpy's cost of gain is running $0.70.  That means that Lumpy, er, excuse me, CLARENCE, is going to be short $0.33 per pound.  $0.33 times 197 pounds is a loss of $65.01 to put that weight on.

But wait!  The guvmint will subsidize $0.10 of that, so Lumpy, er, Clarence would only be short $0.23 per pound.  That's only a loss of $45.31 per head.

I've said it once, and I'll say it again:  YOU DO NOT MAKE MONEY IN THE CATTLE BUSINESS BY PUTTING WEIGHT ON CATTLE.  YOU MAKE MONEY BY KNOWING WHEN NOT TO PUT WEIGHT ON CATTLE.

Lumpy should sell those 5-weights NOW, NOW, NOW and tell the government to take it's stinkin' subsidy and go jump in the Lake of the Ozarks.

Forecasters are killing the North American Cattle Industry.
"Global warming" is a complete fraud designed to advance the cause of socialism and enslave humanity.
Abortion is the murder of an innocent human being and is never justified under any circumstance whatsoever.
Every human being is a question, to which the ONLY answer is Jesus Christ.