Came close

[IluvABbeef]

To getting started with some cattle this year, but not close enough. My DB offered to take out a loan and sponsor me with getting started and raise a few heifers in an MIG system in the corrals we have this year, which I would've gladly taken if he didn't mention the word "loan" or that we both already had enough of a financial burden to deal with as it is. Cattle prices are crappy for buying anyway; Great for selling!

And man, I don't even have a plan nor a budget set out to even be able to go about this!

So, even though I am one step closer to becoming a "part-time" cattle producer now that I've got a good and sturdy job, I'm still not ready enough to get started in cattle nor dive off the deep end. NOW of all times!!

And I'm really starting to hate the word "loan"...

In five years I may be ready to start, start in the shallow end by purchasing some stockers (heifers maybe, debating whether to start w/ weaners or yearlings...may be best with weaners), grazing them MIG in the spring/summer months then selling in the fall. After a bit of this then maybe I can start a cow-calf herd.

Heifers versus 3-fer's, with that "Stop the Train" thread that CB posted starting to second-guess the decision on 3-in-1's over heifers.

But, whatever. Still got another 5 or so years to make a decision.

[IluvABbeef]

Anybody started with a loan for starting up in cattle? I'd like to know of those who haven't too...

[Kathie in Thorp]

Anybody started with a loan for starting up in cattle? I'd like to know of those who haven't too...

I've pulled $$ from places I probably should have left alone, to start up, and have not regretted it, since the stock market was craap but the cattle market was getting better. In the long run, we'll see if that was a wise move. But in the meantime, I like having the cattle around, they bring us both joy and frustration, they've improved the landscape around here and kicked my guys in the butt to actually DO something with the ground that had been sitting idle for 10 yrs., we have a niche market for our beef, and that's all good for everyone here.

[Aaron]

One piece of advice, weaned Hereford heifers. You won't buy anything cheaper than them when you start out. And then you have the option of grassing/breeding/calving and selling whenever you want. Just make sure you buy some good vaccinated calves. In fact I may have enough cows to make a good potload for you in 5 years.

[H and H]

We cashed in some stock options for seed money, and are heeding grandpas advice to stay away from the bank unless youre buying land. My advice is to buy something with better than even odds of 'growing into money'. For the last few years the money has been in making replacements. Buy reputation OCV girls in the fall, run them on corn stalks and a little creep, AI at grass time, calf em out, sell, repeat. I know theres a lot of people doing this, its labor intensive, but if youre doing what you love...When the nations cowherd is rebuilt this market will turn, when it does we plan on keeping that last set of heifers as the nucleus of our cow herd.

[bigbull338]

heres advice from an old man that has done it both ways.when i started messing with herefords i used the cash i could put togather to buy cows an a bull an that worked.then ive gone to the bank an got a lil money off an on.no more than i could pay back in 2 or 3yrs.an only putting up the cattle on the loan.an never an i mean never put up the land to the a loan.its not worth it.

[backhoeboogie]

Kids, "starting out" pour money into cars, boats, and other toys. These things don't appreciate.

I have never been opposed to borrowing money to make money. Buying cattle is no different than buying a business.

I'd much rather see someone borrow money to buy land versus cars, boats and other toys.

[J&D Cattle]

Buddy and I paid cash for 8 heifers in 2007 but soon wanted to expand. We are now up to 24 head of mommas and own a bull. We worked with a local community bank to secure a line of credit. Started expanding in 2009 with the purchase of another 7 heifers. Everything should be paid off by the end of 2013. We've also bought a couple of trailers, many pieces of livestock handling equipment, and lots of miscellaneous items that will also be free and clear. Starting with heifers definitely wasn't the way to quick money but it allowed us to buy the number of head our places would run at a cheaper cost than buying bred cows or pairs.

If cow/calf was my goal and I had it to do over again I would start with some older bred cows and turn them until I had some money saved up to afford a younger set.

[Caustic Burno]

Don't think this rocket ship sky high price's can't crash land.
This is a a business of cycles. I disagree on borrowing as I believe it is a bottomless pit.
But I am old school.

[hooknline]

Cash only and no plans to borrow. Only thing I have that has a note is the house and land

[IluvABbeef]

More thinking to do...And of course the banks won't be easy to please if I don't have a straight-forward plan of what I want to do with their money, making it a bottomless pit indeed.

But who wants to please a bank?

All I can say is I'm thankful I got a job to help build up savings so that I can do possibly things cash only without having to take out loans all the time...

[IluvABbeef]

Buddy and I paid cash for 8 heifers in 2007 but soon wanted to expand. We are now up to 24 head of mommas and own a bull. We worked with a local community bank to secure a line of credit. Started expanding in 2009 with the purchase of another 7 heifers. Everything should be paid off by the end of 2013. We've also bought a couple of trailers, many pieces of livestock handling equipment, and lots of miscellaneous items that will also be free and clear. Starting with heifers definitely wasn't the way to quick money but it allowed us to buy the number of head our places would run at a cheaper cost than buying bred cows or pairs.

If cow/calf was my goal and I had it to do over again I would start with some older bred cows and turn them until I had some money saved up to afford a younger set.

Dumb question, but can you explain this please? the stuff in bold...

[Caustic Burno]

Cousin was a FSA loan officer, started his own repo business from it.

[IluvABbeef]

Cousin was a FSA loan officer, started his own repo business from it.

And I heard that being a loan officer was tough...

[tom4018]

So far I have not borrowed any money to buy cattle. I have to buy a tractor and equipment. Always bothered me to owe on something that could die, always thought the equipment could be fixed. It was slow getting to this point but the cows are free and clear.