I recently paid $8.20 at the local feed store here in Gatesville. That is too high with what corn is bringing at market. I was able to purchase about 2 tons in the field from a friend. With the tip it came out to about $4.13 a bushel or about $3.62 per 50#. It seems about $8 is the going rate but corn is plentiful and incredibly cheap right now. Hopefully those prices at the store go down soon.

redaszag99 said:

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Not I35 but bucees in Katy was ~$7.30 and Bastrop was 6 something

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Bucees has been the best deal I've seen last few years.

CrossTimbersW said:

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I recently paid $8.20 at the local feed store here in Gatesville. That is too high with what corn is bringing at market. I was able to purchase about 2 tons in the field from a friend. With the tip it came out to about $4.13 a bushel or about $3.62 per 50#. It seems about $8 is the going rate but corn is plentiful and incredibly cheap right now. Hopefully those prices at the store go down soon.

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So, we've been talking prices on vets. So, let's talk commodities. You friend bought at 3.62 in the field. And you feel $8.20 at the feed store is too much. What do you think is a fair price?

Let's look at costs to get the corn in the bag at the store.

1) trucking to processing mill
2) the bag itself (easily $0.30-0.50 each)
3) filling, weighing, closing, stacking - whether manual or automated, plenty of costs in that.
4) mill's margin
5) shipping to store (okay, maybe save here by buying at the mill's store)
6) store's margin. Buc-ee's can sell at cost or below because they hope you buy the high margin items like a coke and some food or other items.

So, what's a fair price?

I simply stated that bagged corn was too high based on what corn is trading at right now. I didn't offer a fair price.

When the farmer has his corn contracted out at $3.85 per bushel that's about $3.50 per 50#. Let's add in $0.50 per bag so we're up to $4 per 50# bag of corn. That corn needs to be cleaned and shipped. I'll add $1 per bag for cleaning ($5 per bag now) Let's say it needs to be hauled 200 miles. Nothing in my area should have that mileage but I'll just use that as an in-between. Two hundred miles @ $7 loaded mile hauling 1,000 bags of corn is $1,400 or $1.40 per bag. We're up to $6.40 per bag. I'm sure there's plenty of other hands in the pot and things I've missed that would bring that price up. We're still a long ways from $8 a bag. My opinion was $8 was too much. My opinion has not changed.

What is your fair price?

CrossTimbersW said:

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I simply stated that bagged corn was too high based on what corn is trading at right now. I didn't offer a fair price.

When the farmer has his corn contracted out at $3.85 per bushel that's about $3.50 per 50#. Let's add in $0.50 per bag so we're up to $4 per 50# bag of corn. That corn needs to be cleaned and shipped. I'll add $1 per bag for cleaning ($5 per bag now) Let's say it needs to be hauled 200 miles. Nothing in my area should have that mileage but I'll just use that as an in-between. Two hundred miles @ $7 loaded mile hauling 1,000 bags of corn is $1,400 or $1.40 per bag. We're up to $6.40 per bag. I'm sure there's plenty of other hands in the pot and things I've missed that would bring that price up. We're still a long ways from $8 a bag. My opinion was $8 was too much. My opinion has not changed.

What is your fair price?

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The $8.20 to 8.99 is pretty fair price. The Buc-ee's (think Walmarts) can sell at cost or loss. But the store owner has employee costs, insurance, overhead (e.g. utilities), workman's comp insurance, etc. And then they need to make a little on top to stay in business (only communism thinks a profit is bad). You won't change your mind and that fine. But, your views and knowledge, and expectations of unsustainable margins, is why manufacturing won't ever really see a rebirth in the US.

So, you've gotten to $6.40 in costs (which were not all inclusive). How much do you think the store should add on top of their $6.40 cost and charge you - you think they should make $0.50 per bag?

You know this rice bran supplement for horses typically sells for $49 per 40 lb (not 50!). The ingredients cost at max $7 to 8 dollars and with rice bran plummeting in price, it may only be $5.

Tecolote said:

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CrossTimbersW said:

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I simply stated that bagged corn was too high based on what corn is trading at right now. I didn't offer a fair price.

When the farmer has his corn contracted out at $3.85 per bushel that's about $3.50 per 50#. Let's add in $0.50 per bag so we're up to $4 per 50# bag of corn. That corn needs to be cleaned and shipped. I'll add $1 per bag for cleaning ($5 per bag now) Let's say it needs to be hauled 200 miles. Nothing in my area should have that mileage but I'll just use that as an in-between. Two hundred miles @ $7 loaded mile hauling 1,000 bags of corn is $1,400 or $1.40 per bag. We're up to $6.40 per bag. I'm sure there's plenty of other hands in the pot and things I've missed that would bring that price up. We're still a long ways from $8 a bag. My opinion was $8 was too much. My opinion has not changed.

What is your fair price?

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The $8.20 to 8.99 is pretty fair price. The Buc-ee's (think Walmarts) can sell at cost or loss. But the store owner has employee costs, insurance, overhead (e.g. utilities), workman's comp insurance, etc. And then they need to make a little on top to stay in business (only communism thinks a profit is bad). You won't change your mind and that fine. But, your views and knowledge, and expectations of unsustainable margins, is why manufacturing won't ever really see a rebirth in the US.

So, you've gotten to $6.40 in costs (which were not all inclusive). How much do you think the store should add on top of their $6.40 cost and charge you - you think they should make $0.50 per bag?

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Wow, you dug down deep there to call me a communist and the reason business in the US fails. Nicely done. You couldn't be more wrong, but whatever makes you feel better my friend.

I'll end this on my end by saying corn is down 10-15% in the past year, at least. Some estimates suggest more. I believe $8 bag of corn is too high in the current market. You are fine with that price. There is nothing wrong with either of those views. I chose to seek other avenues to reduce cost on my end. You chose to be happy with the current price. I've got no problem with that.

OP, sorry that your thread was derailed.

FWIW, I saw this morning at a local feed store here in Gatesville that deer corn was now $6.95 per bag. That is a much more realistic price and more reflective of the current market in my opinion.

Burdizzo said:

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Tecolote said:

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CrossTimbersW said:

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I simply stated that bagged corn was too high based on what corn is trading at right now. I didn't offer a fair price.

When the farmer has his corn contracted out at $3.85 per bushel that's about $3.50 per 50#. Let's add in $0.50 per bag so we're up to $4 per 50# bag of corn. That corn needs to be cleaned and shipped. I'll add $1 per bag for cleaning ($5 per bag now) Let's say it needs to be hauled 200 miles. Nothing in my area should have that mileage but I'll just use that as an in-between. Two hundred miles @ $7 loaded mile hauling 1,000 bags of corn is $1,400 or $1.40 per bag. We're up to $6.40 per bag. I'm sure there's plenty of other hands in the pot and things I've missed that would bring that price up. We're still a long ways from $8 a bag. My opinion was $8 was too much. My opinion has not changed.

What is your fair price?

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The $8.20 to 8.99 is pretty fair price. The Buc-ee's (think Walmarts) can sell at cost or loss. But the store owner has employee costs, insurance, overhead (e.g. utilities), workman's comp insurance, etc. And then they need to make a little on top to stay in business (only communism thinks a profit is bad). You won't change your mind and that fine. But, your views and knowledge, and expectations of unsustainable margins, is why manufacturing won't ever really see a rebirth in the US.

So, you've gotten to $6.40 in costs (which were not all inclusive). How much do you think the store should add on top of their $6.40 cost and charge you - you think they should make $0.50 per bag?

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You mentioned all the typical business costs. You didn't even scratch the surface of all the regulations the Texas State Chemist put on commercial feed producers.

https://otscweb.tamu.edu/Laws/PDF/FeedRules.pdf


Years ago, my dad would sell straight out of the bin, and let the auger dump straight into the bed of a pickup truck, 55-gallon barrel, or recycled feed bag that the customers brought. Nowadays, that is a big no-no. Everything has to be cleaned, tested, and labeled before it is sold commercially. There is a helluva lot of work between buying it on the turnrow and grabbing it from a stack of bags at Buc-ee's.

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Trust me - I know all that! I was just using layman business generalities. Thus my "costs (which were not inclusive". Yep, customers don't realize all the regulations. Cross contamination is a huge deal so all products have to be maintained in strict control. So many possible things in feed for a cow could kill a horse or a lamb.

And all that cheap corn - better be careful with aflatoxin levels which hopefully the producer monitors appropriately.

Not all deer corn is the same and sometimes you get what you pay for. Some of the cheaper product has all kinds of fines, dirt, trash, and other undesirables. And as Tecolote pointed out - toxins.

May not seem like it makes a difference but feeders get clogged, you are paying for those fines and trash, and serious deer people don't want toxins and fines getting into their animals.

Toured a manufacturer and watched the cleaning, weighing and bagging. Can't remember the number but that machine was millions of dollars.

And CrossTimbers, ain't nobody getting rich on corn. Bagged corn is among the lowest margin items in the feed industry.

Corn is, in reality, just expensive bait. At 6% protein content at best, it does little for the deer. The only benefits is carbs….but only during cold months when deer need body fat…other than those times it does little for the health of deer…and can do more harm than good.
Maybe feed something else, like peas or good protein pellets, or cottonseed.