FEEDING AND CARE OF BEEF CATTLE 291 



use of the manure produced and purchase much of their feed. On 

 such a basis the enterprise is largely speculative. 



Margin. — Under usual conditions, the feed consumed by fattening 

 cattle or sheep per 100 lbs. of gain costs more than the selling 

 price per cwt. of the finished animal. With normal market condi- 

 tions, this difference is offset by the fattened animals selling for a 

 higher price per 100 lbs. than was paid for the same animals as 

 feeders. The difference between the cost per cwt. of the feeder and 

 the selling price per cwt. of the same animal when fattened is called 

 the margin. The principle of the margin may be illustrated thus: 

 If a 1,000-lb. steer costs $7.00 per cwt. when placed in the feed lot, 

 its total cost is $70.00. If during fattening it gains 400 lbs. at a feed 

 cost of $;36.00, each cwt. of gain has cost $9.00. Assuming that the 

 manure produced pays for the labor, the steer, now weighing 1,400 

 lbs., has cost $106.00 and accordingly must bring $7.57 per cwt. at 

 the feed lot to even the transaction. Here the margin will be $0.57, 

 the difference between $7.57 and $7.00. On account of the high 

 cost of the gains, a margin must usually be secured in fattening 

 cattle or sheep to make a profit or "break even." 



The factors which determine the margin needed in fattening are: 

 (1) the initial cost of the cattle; (2) their initial weight; (3) the cost 

 of the gains; and (4) the expense of getting the steers to the feed 

 lot and then to the market, when finished. 



Other conditions remaining the same, the higher the initial cost 

 or purchase price of the feeder the narrower, or smaller, is the neces- 

 sary margin. For example, let us assume that a feeder steer weigh- 

 ing 1,000 lbs. is fed until he has reached a weight of 1,300 lbs., the 

 gain costing 10 cents per pound for feed. If the feeder costs $4.00 

 per cwt. in the feed lot, it will have to sell for $70.00, or $5.38 per 

 cwt., to break even. The necessary margin is $5.38 — $4.00 ^$1.38. 

 Had the feeder been bought for $7.00 per cwt., no money would be lost 

 if it were sold for $100.00, or $7.69 per cwt. at the feed lot. In 

 this case the necessary margin is only $0.69. 



The heavier the animal is when placed on feed the narrower will 

 be the necessary margin, for the increased selling price is secured for 

 a greater number of pounds of initial weight. This factor may be 

 offset, as is shown later, if the heavier cattle are older and hence 

 make more expensive gains. 



It is evident that any factor which increases the feed cost of the 

 gains makes necessary a wider margin. The necessary margin is 

 thus greater when feeds are high in price, and also with mature 

 animals than with younger ones, which make more economical gains. 

 Since gains made on grass are usually cheaper than in the dry lot, a 



