Figure out a cost of gain if you were going to feed animals of your own, count your labor and equipment and yardage too. Build in some risk coverage, specify type of animal to be fed, as poorer cuts of cattle are just that and heifers generally gain slower than steers.
The guy I contract to has charged me anywhere from $.65/# gain to $.98/#gain depending on what he needs. He has backgrounded steers, and finished heifers and steers for me. We usually draw up a contract where he will target a certain amount of gain (250-300# is best for him) and then go from there. If it makes sense for me to continue owning them, we'll draw up another contract for the next portion of gain. I pay him a base amount, usually a round number cose to 3/4s the expected gain on a monthly basis. The first 2% of death loss is my risk, after that it becomes his responsibility. We've been quite fortunate because he's pretty good at what he does and walks the pens nearly everyday.
Generally the weight of fhe cattle going out (off feed or empty bunk first thing in the morning)- the weight of the cattle delivered - 4% for shrink is what I pay on.
The guy I contract to has charged me anywhere from $.65/# gain to $.98/#gain depending on what he needs. He has backgrounded steers, and finished heifers and steers for me. We usually draw up a contract where he will target a certain amount of gain (250-300# is best for him) and then go from there. If it makes sense for me to continue owning them, we'll draw up another contract for the next portion of gain. I pay him a base amount, usually a round number cose to 3/4s the expected gain on a monthly basis. The first 2% of death loss is my risk, after that it becomes his responsibility. We've been quite fortunate because he's pretty good at what he does and walks the pens nearly everyday.
Generally the weight of fhe cattle going out (off feed or empty bunk first thing in the morning)- the weight of the cattle delivered - 4% for shrink is what I pay on.
