There are more critical factors than cheap feed that feedlot operators need to consider when deciding whether they should expand their operation. Maximizing your current resources should be a critical first step when considering an expansion. Are feeds tested and rations balanced on a regular basis. Knowing your cost of gain is the key to making sound management decisions. Prices for feeder cattle, fed cattle and feedstuffs impact profit potential.
Interest is one variable that can change projections for profit quickly.
Expand for a specific purpose i.e. a backgrounding pen or finishing pen. Is there home grown feed available or will it have to be purchased. Beef producers need to understand the beef cycle to plan for expansion. All indications are that the cattle cycle has peaked and supply declines are expected. There are lots of pigs in the pen.