Grow More. You need to finish more feedlot cattle to fill increasing demand from your customers.
Graze More. You want to background more cattle prior to feedlot entry to improve feedlot returns and reduce procurement risk.
Get More. You want to expand the One Time Capacity of your feedlot.
Get New. You want to buy another farm to expand your grazing and/or cropping capacity.
Get Close. You want to get closer to the end customer by selling your cattle on based board.
Case Study
We thought we had a specialist livestock trading facility but when we analysed the numbers, we realised that the only way to grow our feedlot business was by re-investing our profits as we fill increasing production costs.
1) of our feedlot was being used exclusively to finance our feed bills
2) of our grazing land and cropping land was being used as the collateral to finance livestock purchases into the feedlot.
When we switched to a Commodity Finance Facility it allowed our business to:
Stop Leveraging Non-Current Assets to finance our Current Assets.
Start Leveraging Current Assets such as Contracts, Accounts Receivable, Beef, Feedlot Cattle and Backgrounding Cattle to fund our production costs.
Reallocate the Borrowing Capacity of our Farmland allowing us to buy more farmland and expand the feedlot.
Do you really have a feedlot finance facility?
10 Quick Calculations that every feedlot owner must do today.
