A study out of Kansas State University found that when comparing 61 different cow-calf operations over a 5-year period, there were some commonalities among those businesses that made money, and didn't, regardless of the revenue side of the equation, reports Progressive Farmer.
"One of the things that stood out for us was how little the revenue side really impacted profitability," said Dustin Pendell, one of the researchers on the project. "Profits are largely driven by the cost side, which is important to note." One of the biggest drivers, with a -27% difference between the top third of the operations analyzed, and the bottom third, was feed costs. Pendell noted it's a "huge driver of variable costs."
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