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When Doug Ferguson was a teenager, he had three things on his to-do list: having a family, riding a bull, and raising cows. Even then, he knew the other had to make money in the latter to support two ends. The cattle marketer grew up in a mixed farming business in southeastern Nebraska, and despite hearing about working on ranches, custom feedlots, and working on farms, can make a profit in the cattle business. I always had the idea of a feed mill.
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The trading strategy he employs has been around for several years. Most people in business operate on the theory of buying and selling. The concept of buying and selling has been shared over the years by Dr. Gordon Hazard, Bud Williams, Bud’s daughter Tina Williams and her husband Richard, Anne Barnhardt, Wally Davis, and now Ferguson, among others.
Ferguson attended his first marketing school from Bernhardt in 2005. “I had heard that there were so many pitfalls that it was impossible to be consistently profitable in animal husbandry. This knowledge showed me that there was a way to be successful.”
Its essence is to sell “overvalued” stocks and replace them with “undervalued” stocks. This concept applies most readily to year-olds, or, as Ferguson and his Americans say, stockers. Profits are taken on buys, not on sells.
“Buy class stocks that you can upgrade,” he says. Because of this, he is more likely to buy a “regular” rather than a “luxury” cow.
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“Your pencil is sharp and you have to focus on practice that is within your control,” he says. Think of cost as the fulcrum of the lever, and if you can get your costs down, you get more power.” He said there are two areas.
mind set
Ferguson has many philosophies that apply to life in general, but they also apply to his business. He stresses the importance of a positive attitude and mindset. It’s no surprise that he’s now started to become a life coach. Here are some of the principles he follows.
- Always point the compass needle in the right direction.
- When things go wrong, you need to respond rather than react.
- You need a specific goal. Don’t do anything that doesn’t match your goals.
- You have to sneak in through the window when other people are out the front door.
- Peer pressure is very strong in the ranching business and you have to resist it.
- The only thing you can control is the effort you put in, and you have to take responsibility.
- If you are in the cattle business, you are also in the feed business and the money business.
- Opportunities are always there. Watch and grab them.
- you have to make an effort. You have to take responsibility and you have to be aware.
Ferguson is not currently in the cattle and calf business but is focused on stockers. and custom grazing work.
“I’m an energetic guy, so stocker action suits me.”
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He’s always doing pre-conditioning work and, of course, selling high-value cows and then buying low-value class cows. I know maybe.
“I never buy more than 200 squealing calves in a week because I know this is something I can handle well. I tried the 750 once and it was too much for me to handle ’ he says.
calculate
The typical reaction is that everything is fine for Doug Ferguson, but it doesn’t work for me. But when you think about what the most valuable stock in your business is right now, it’s probably a five-year-old cow. It’s easy to come up with many reasons why this wouldn’t be a good idea. But as Ferguson says, do the math.
However, Ferguson acknowledges that each surgery is unique and you need to find what works best for you.
He looks at the value of gain (VOG) or return of gain (ROG). So if he sells 700 pounds of steers for $2.35 a pound, that’s $1,645. If a 500-pound steer is $2.60 per pound, the total is $1,300 for him. A £200 difference is worth $345 or he is $1.72/lb. This equation is only part of the answer, but it is important in our calculations. Ferguson also stresses that producers need to know their costs and therefore their cost of profit (COG). VOG is a market that indicates whether it costs money to put weight on a cow. If VOG is $1.20 and he’s COG is $1.40, you can buy it cheaper than wearing it.
Another of his strategies is to buy and sell on the same market. He says you can wait, but that increases your risk.
On the importance of mindset, Ferguson shares a story from his time riding a bull. He was leading and undefeated all season. He was sure he was winning. But when all the cards piled up in his favor, a small thought crept in of how embarrassing he would have been if he hadn’t won.He drove off his two bulls in the first, but I think it’s self sabotage. His immediate reaction was to blame someone else. But he reflects that it was all in his mindset, and it’s something we can control.
As marketing expert, philosopher and motivator Ferguson puts it: And don’t aim for average. Let’s do our best to be good at it! ”
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