A:   The best thing to do is to visit with some feedlot managers. Tour to the facility. Also ask about marketing options and what buyers come to their feedlot to bid on finished cattle. They will have records on average daily gains of cattle fed in thier lot and also feed conversion. Ask how the billing process works. Some feedlots will partner with you on your cattle. If you have not fed cattle before, this may be an option for you to get your feet wet and get an idea of the process.

Following are some other items to consider and questions that you may want to ask.

As in any business, some cattle feeders are better than others and as a potential customer, you must evaluate these qualities. Therefore as a customer, these questions should be asked:

1.What are the feed costs and at what moisture basis?

2.What are the yardage or non-feed costs?

3.What is the death loss?

4.What have been current close-outs including the average, highest and lowest?

5.What is the makeup of rations on 100 percent dry basis including step-up rations, length of time on step-up rations and nutrient content of the final ration?

6.How often are bunks read and rations fed?

7.Who does the nutritional and veterinary work?

8.How many packers visit the feedlot and how are the cattle sold--live, shrink, carcass?

9.Who will do the marketing of the cattle--will the cattle be sorted at any time--will the feedlot forward contract the cattle--will the feedlot sell the cattle?

10.What is the number of cattle needed per pen?

11.What are your vet costs, vaccination program, implants, additives used?

12.How long has the present- management been feeding cattle at this feedlot?

13.Are you interested in my business and why?

14.Who are your current customers and may I contact them?

15.What does the feedlot look like?

--lot conditions, mud, design, fencing, bunk space

--are cattle nervous or contented, number of founders

--do bunks contain moldy feed, empty bunks --are these economical facilities, not necessarily fancy but functional

The most important question concerns ration and yardage costs. If you visit ten feedlots, you probably will receive ten different answers. Yardage will vary and may be $.25 to $.40/head/day for yardage cost. A markup on feed is usually on an as-is basis. Roughages may have a $10-15/ton fee and grains may have a $.05 to $.15/bushel fee. Make sure that you convert all feed costs to a common dry matter basis, usually 100 percent dry. Most mistakes made are a result of not accounting for different moisture levels of ingredients fed in the rations. For example, Feedlot A states that they charge a mark-up of $10.00/ton for their feed versus Feedlot B which charges a mark-up of $14.00/ton for their feed. On the surface, Feedlot A appears to charge less. However the dry matter content of Feedlot A's ration is 60 percent, and thus, the charge is $16.10/ton dry whereas the dry matter content of Feedlot B's ration is 87 percent, and thus, the charge is $16.10/ton dry.