BUSINESS PHASES 39 



discussion makes an average daily gain of 2.2 pounds, 

 or 396 pounds for a six-months' winter feeding period, 

 that 75 pounds of pork are made from the droppings 

 of the steer, that 6 pounds of beef and 1.14 pounds 

 of pork are made from each bushel of corn fed, supple- 

 mented with clover hay. On this basis it would 

 require about 66 bushels of corn, supplemented with 

 one ton of clover hay to secure the gains recorded for 

 the whole time. 



Granting that we are dealing with a choice 1000- 

 lb. feeder that is worth $4.50 per hundredweight in 

 the feed lot, the following financial statement might 

 be made up : 



DISBURSEMENTS, EXHIBIT A 



One 1000-lb. choice feeder at $4 . 50 per cwt $45.00 



66 bushels corn at 30c. per bushel 19.80 



One ton clover hay at $5 5.00 



Total cost $69.80 



The above "total cost" does not, of course include 

 interest on investment or labor, and to simplify the 

 discussion it is assumed that the cattle are sold at home, 

 thus doing away with marketing expenses. 



For the first statement 30-cent corn and $5 hay is 

 taken as about the minimum prices that could be figured 

 even from the viewpoint of the cattle feeder who pro- 

 duced his feeds. If the choice, well-bred feeding steer 

 cost $4.50 per hundredweight in the feed lot and the 

 purchaser gets what he pays for and properly finishes 

 the steer, he ought to expect $1.25 per hundredweight 

 more for the steer at home in the feed lot than cost price 

 delivered in the feed lot. 



RECEIPTS, EXHIBIT A 

 One 1396-lb. choice to prime steer at $5.75 par cwt. $80.27 

 75 pounds pork at $5 per cwt 3.75 



Total receipts $84.02 



Total expenditures 69.80 



Profit per steer on basis of 30c. corn and $5 hay . .$14.22 



