Isomade wrote:Lots of variables. But for me, 100% debt free and I could make it work at about 350-400 with excellent low input management.
TennesseeTuxedo wrote:Isomade wrote:Lots of variables. But for me, 100% debt free and I could make it work at about 350-400 with excellent low input management.
Why so many Iso? I was thinking around 200-240 assuming no debt to service.
ohiosteve wrote:Personally I couldn't even imagine jumping into the beef cattle business starting from zero and expecting to live comfortably. Dairy on the other hand I think it is feasible if you are an efficient operator since you have a daily income you can predict with reasonable accuracy.
TennesseeTuxedo wrote:So if a fella has everything paid for and only owes property taxes each year and he sells 200 calves weighing on average 600 pounds at and average price per pound of $1,50 (conservative in today's market where I am anyway) that would be $180,000 in gross revenue.
What the heck are these cows doing to burn through $160,000 to leave a net profit of just $20,000 if the net profit is only $100 a head?
hooknline wrote:I've asked that question many times and never have gotten a straight answer.
My gut is telling me lots and lots of high dollar equipment, loans on the land, and other debt load.
Let's do some math real quick.
100 calves at 600 lb wean at 150 cwt sale price. That's 90,000.
Carrying cost of mom at 1.25/day at 365 days is 45,625 actual cost to carry 100 cows. That leaves
44,375 profit. Let's take out 50 bucks a calf for shots, supplies, implants erc. And that's a high number. That's still 39,375 profit.
Add in fertilizer cost, land taxes, and misc costs. Let's say another 100.00/ pair avg. and that's probably high. That's still leaves 29375 profit off 100 calves assuming a 100% calf crop. But wait, that not counting the cow as a retained asset and her sale price assuming she doesn't die on the farm.
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