[slv77]

Most of these ranches will be running cow-calf operations. A cow-calf operation is a herd that produces calves which can be sold to a feedlot or backgrounding operators.

In factory farming it’s the calf that is the factory that turn grain into beef. It takes 3 pounds of grain to produce a pound of beef so it’s cheaper to move the calf to the grain than the grain to the calf.

At the same time a cow can only produce one calf per year so it is cheaper to keep the herd of cows that produce the calf on marginal grasslands rather than on the richer farmland near the feedlots.

While these ranches aren’t directly shipping steaks to customers they are more than a vanity project for the wealthy.

[slv77]

Economic incentives aren’t aligned between cow-calf operations and feedlots. There may be a significant difference in feed efficiency between calves. Some may turn grain to meat at a 2:1 ratio and others at a 4:1 ratio but ranchers are paid the same for each calf. A way to cheaply identify calves that are more feed efficient or align incentives would be worth some money.