That could be inpart because you thought BASIS was profit.HerefordSire wrote:Stocker Steve wrote:Depends. Bankers are not quite as keen on stockers. They see the potential to lose a bunch of money in a couple months if you do not have some type of risk protection.
I didn't know that. I was thinking the risk was less with stockers.
brandonm_13 wrote:$30k is a pretty good payday to me. Not saying you could make those profit margins, but still $30k is pennies for one person and wealth for another.
brandonm_13 wrote:Hard to say. As just posted, you could make up to $30k with the approach mentioned earlier. Custom grazing on leased land is one good way, as well as running a cow calf operation and finishing livestock for retail sales are two good ways to get to full time production, but you have to know quite a bit about forages, soil, reproduction, marketing. These are all things that would take time. I would recommend starting slow, keeping a record of all of your expenses and basing things off of your profit margins. Just remember, things change from year to year, and some things change depending on how large or small you are.
Theoretically, if you could make $100 profit on a calf in a cow calf situation, you would need 10 calves for $1,000, 100 calves for $10,000, and so on. In a cow-calf situation, that would mean you need a minimum of 100 cows, and 1-4 bulls depending on breeding strategies. Plus you would need land, fencing, water, etc.
Personally, I would try to make my profit per acre go up as much as possible before adding acreage, whether you do that from using moveable chicken pens to reduce parasites(instead of spending money with commercial products) and sell eggs and/or meat. Adding goats would reduce your cost of herbicides needed, and the kids born could be sold, or you could fill your freezer. Anytime you can put farm produce on the table by growing it instead of buying it, you increase your profit margins by reducing cost. You can also tell what your product tastes like which helps you determine if there are practices that you need to change.
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