Farmer-feeders can potentially compete with anyone in the cattle feeding business. They have traditionally had many built-in advantages. By feeding the cattle on the farm where the grain and roughage are grown, drying, handling, shrinkage and transportation costs are reduced, and returns can be increased per acre by being able to market roughages and silages through cattle. In addition, there are fewer people obtaining a profit out of both the cattle and the feed when cattle are fed at the source of the feed. Another plus factor that will become increasingly important is that pollution is not as big a problem for the farmer-feeder, as effective use of feedlot wastes can be made by using them to maintain the fertility of the soil where the crops were grown.
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Department of Animal Science and the Agricultural Experiment Station, South Dakota State University
Cox, D. G., "Relative Position of Farmer-Feeders in the Increasingly Competitive Cattle Feeding Business" (1971). South Dakota Cattle Feeders Field Day Proceedings and Research Reports, 1971. 19.