We had an misleading error in our recent story on preconditioning premiums.
Mike John of MFA in Missouri says cost of gain for that company's preconditioning program known as Health Track, has for several months now been between 60 and 80 cents per pound of gain and averaging right around 70 cents per pound.
This is a total cost of gain, including the cost and benefits of Health Track's high-efficiency feeds.
Health Track is a VAC-45 program which also includes feeding requirements using MFA feeds designed to encourage feed consumption, maximize immunity and produce daily gain, John says.
"Those cost of gains are possible because of the use of the highly efficient feeds mentioned but all of the costs associated with pre-conditioning, including the cost of these efficient feeds, add together to come up with the 60- to 80-cent cost of gain," John adds.
This cost of gain can be subtracted from the gross value of gain for added pounds put on during a preconditioning program, he says. Value of gain varies all the time, of course, depending on cattle prices and the price spread from lightweight to heavy cattle, but John says this fall in Missouri it looks like it could be around $1.20 or $1.30 per pound for 650-pound calves.
He suggests producers use the tools on BeefBasis.com to calculate value of gain and other useful marketing and financial tools.