SELECTING STEERS FOR FEEDING 23 



the higher the price the greater the margin necessary; if they 

 are of the same price the more effective the feed, the narrower 

 the margin. 



The initial cost also affects the margin. The cost of gains re- 

 maining the same, the higher the initial cost of the feeder the 

 narrower the margin. For example; take a feeder weighing 

 1,000 pounds at the start, and at the end of the period 1,250 

 pounds. At 10 cents per pound, the gain cost $25. If the 

 feeder cost $4.50 per 100 pounds he would have to bring $70 at a 

 weight of 1,250 pounds to hreak even, or $5.60 per 100 pounds. 

 The margin necessary would be $1.10 per 100 pounds. 



Were the steer bought at $5 per 100 pounds, the operator would 

 break even at a selling price of $6, or on a margin of $1. If $6 

 were paid, the operator would break even at $6.80, or on a margin 

 of 80 cents. This explains in part why men more than break 

 even by paying high prices for feeders, provided there is a good 

 market for the finished animal. 



The initial weight of the feeder also affects the margin. If the 

 initial cost per pound, the amount gained, and the cost of the 

 gain remain the same, the heavier the feeder, the narrower the 

 necessary margin. This is an argument in favor of the heavier 

 steer, but it is counterbalanced because the older and heavier 

 an animal becomes the more feed it takes to produce a pound of 

 gain. 



Expenses incidental to getting the steer to the feed lot and 

 again to the market affect the margin directly. That is, the 

 greater the expense, the wider must be the margin to break even. 



A wider margin is necessary in winter than in summer because 

 the cost of producing gains is greater in winter than in summer. 



Young cattle make more economical use of their ration than 

 mature cattle. Hence they can be fed on a narrower margin 

 than oMer cattle. 



If the buying prices of good and poor feeders are the same, 

 the better quality of cattle offer the wider margin. However, 

 the last year or so the good feeder has advanced more rapidly 

 in price then has the prime steer; sometimes a better margin 

 is offered for feeding steers of less quality due to the fact -that 

 the price of poor feeders is comparatively lower than the differ- 

 ence in quality would seem to warrant. 



The necessary margin increases proportionately as the length 

 of the feeding period increases. As cattle increase in fatness the 



