Neighbor's cattle profits

[fitz]

herofan,
Your neighbor did good. Prices were pretty good last year.
I keep real close records of input costs and return. The number I sold was a few more than your neighbor. Best I could determine my net profit was right @ 250.00 per head.

fitz

[salebarn junkie]

So, it appears that some feel that you don't make much money with cattle, and if you think you do ok, you are wrong. My grandfather must have been cheating. He passed away in the 80s, but he ran cattle on this farm for 50 years and not only made a living, but apparently made good money, I would go as far as to say they were fairly wealthy by the 70s. Neither he nor my grandmother worked public work. They were very frugal and didn't spend much. He bought a Ferguson tractor and a few pieces of equipment in the 50s and retained those the rest of his life. I can think of several old farmers from that generation who were known to have a lot of money and never did anything but farm. Have times now changed to t9he point one can't make anything?

So, it appears that some feel that you don't make much money with cattle, and if you think you do ok, you are wrong. My grandfather must have been cheating. He passed away in the 80s, but he ran cattle on this farm for 50 years and not only made a living, but apparently made good money, I would go as far as to say they were fairly wealthy by the 70s. Neither he nor my grandmother worked public work. They were very frugal and didn't spend much. He bought a Ferguson tractor and a few pieces of equipment in the 50s and retained those the rest of his life. I can think of several old farmers from that generation who were known to have a lot of money and never did anything but farm. Have times now changed to the point one can't make anything?

My grandparents were the same way but there needs and wants were alot different than mine they stayed home all week didnt have air condition my kids probably spend more on cokes in a week than my grandmother spent at the grocery store, she thought

[agmantoo]

herofan

Do not let the naysayers here dissuade you from thinking you cannot make a profit from cattle. The profit doesn't have to be the $100/head often referenced either. Getting the inputs costs under control is what it takes. I have had numerous private messages regarding the numbers I have posted/referenced on this site. In private I have answered those questions and I also post on another site most of what I do. Yes, I know how to keep records and to recognize my overhead expenses. The monies your neighbor mentioned reflects to me that he knows how to start making money but has a long ways to go to maximize his potential earnings. When he realizes how much he spends on items he does not have to have he can cut out a lot more overhead. I might add the my family never had any cattle nor did any of the last generation farm or own farm or ranch land. There were no inheritances of consequence either. Hang in there and you too will make money!

[herofan]

So, it appears that some feel that you don't make much money with cattle, and if you think you do ok, you are wrong. My grandfather must have been cheating. He passed away in the 80s, but he ran cattle on this farm for 50 years and not only made a living, but apparently made good money, I would go as far as to say they were fairly wealthy by the 70s. Neither he nor my grandmother worked public work. They were very frugal and didn't spend much. He bought a Ferguson tractor and a few pieces of equipment in the 50s and retained those the rest of his life. I can think of several old farmers from that generation who were known to have a lot of money and never did anything but farm. Have times now changed to t9he point one can't make anything?

So, it appears that some feel that you don't make much money with cattle, and if you think you do ok, you are wrong. My grandfather must have been cheating. He passed away in the 80s, but he ran cattle on this farm for 50 years and not only made a living, but apparently made good money, I would go as far as to say they were fairly wealthy by the 70s. Neither he nor my grandmother worked public work. They were very frugal and didn't spend much. He bought a Ferguson tractor and a few pieces of equipment in the 50s and retained those the rest of his life. I can think of several old farmers from that generation who were known to have a lot of money and never did anything but farm. Have times now changed to the point one can't make anything?

My grandparents were the same way but there needs and wants were alot different than mine they stayed home all week didnt have air condition my kids probably spend more on cokes in a week than my grandmother spent at the grocery store, she thought

Oh, I can't disagree with that one bit. My mother often joked that my grandparents would "skin a nat for it's hide if they thought they could sell it for 5 cents." I'm somewhat the modern version of them. I'm more frugal than most in my everyday life, and I'm sure that spills over into my farming. I don't have new tractors, trucks, and equipment, nor do I plan to buy any soon.; I'm not making payments on anything. I don't have new mineral feeders, we still have a couple of wooden mineral feeders that my dad made in the 1950s. I don't even have a four-wheeler like most other farmers. I'm sure most farmers are pumping a lot of money into the farm that I simply don't.

herofan

Do not let the naysayers here dissuade you from thinking you cannot make a profit from cattle. The profit doesn't have to be the $100/head often referenced either. Getting the inputs costs under control is what it takes. I have had numerous private messages regarding the numbers I have posted/referenced on this site. In private I have answered those questions and I also post on another site most of what I do. Yes, I know how to keep records and to recognize my overhead expenses. The monies your neighbor mentioned reflects to me that he knows how to start making money but has a long ways to go to maximize his potential earnings. When he realizes how much he spends on items he does not have to have he can cut out a lot more overhead. I might add the my family never had any cattle nor did any of the last generation farm or own farm or ranch land. There were no inheritances of consequence either. Hang in there and you too will make money!

Thanks, your comments make a lot of sense to me.

[banekar]

Profit is not bad, if the weather cooperates.

[Caustic Burno]

With some of these huge profit's qouted on here I don't understand why you are not the new XIT or King Ranch.

[kjonesel]

No she still hasn't calved, she is probably waiting till tomorrow afternoon when it is supposed to be in the mid 90's.

[B&M Farms]

I inherited land, bought land and lease land for the property taxes and upkeep. I do own some new equipment but I custom bale hay and have been buying tractors and equipment before I bought the first cow. I have a good job and never intend on cattle or hay baling to be my sole income, its just something I love doing. I grew up farming and raising cattle and yes I have seen plenty of folks make a profit off of cattle. They can even pay for new tractors and trucks. Cattle and especially your land have to be managed for a profit.

[herofan]

With some of these huge profit's qouted on here I don't understand why you are not the new XIT or King Ranch.

There's a thought, but I'm not into that big of an operation.

For all those here who apparently aren't making much profit, why do you do it? Is it totally for the enjoyment? Doesn't it get frustrating year after year with so little profits? I understand doing it for enjoyment, but I only have 16 head. I can't imagine having a large number just for enjoyment. that sounds like a lot of work for only $100 a head.

[Caustic Burno]

With some of these huge profit's qouted on here I don't understand why you are not the new XIT or King Ranch.

There's a thought, but I'm not into that big of an operation.

For all those here who apparently aren't making much profit, why do you do it? Is it totally for the enjoyment? Doesn't it get frustrating year after year with so little profits? I understand doing it for enjoyment, but I only have 16 head. I can't imagine having a large number just for enjoyment. that sounds like a lot of work for only $100 a head.

The profit you posted of your neighbor's is richer than three feet up a bull's ass.
That was the national average as per the USDA I qouted you from several years back I have no clue what the average is today it is not near what you qouted. Most people actually run this like a business and keep track of input cost not just salebarn check's. We are one of the few businesses that buy retail and sale wholesale the only control your input cost.
My profit's per cow are running around 300 dollars per year this year. We are seeing price's like we have never seen before and this too shall pass if you stay in this long enough.

[Ryder]

With some of these huge profit's qouted on here I don't understand why you are not the new XIT or King Ranch.

There's a thought, but I'm not into that big of an operation.

For all those here who apparently aren't making much profit, why do you do it? Is it totally for the enjoyment? Doesn't it get frustrating year after year with so little profits? I understand doing it for enjoyment, but I only have 16 head. I can't imagine having a large number just for enjoyment. that sounds like a lot of work for only $100 a head.

A lot of the time it doesn't make any sense.
It's an addiction.
If you have them a lot of the time you wish you didn't.
If you don't have them you wish you did.
It acts like an infectious disease. It gets in your blood and I think pretty much incurable.

[herofan]

With some of these huge profit's qouted on here I don't understand why you are not the new XIT or King Ranch.

There's a thought, but I'm not into that big of an operation.

For all those here who apparently aren't making much profit, why do you do it? Is it totally for the enjoyment? Doesn't it get frustrating year after year with so little profits? I understand doing it for enjoyment, but I only have 16 head. I can't imagine having a large number just for enjoyment. that sounds like a lot of work for only $100 a head.

The profit you posted of your neighbor's is richer than three feet up a bull's ass.
That was the national average as per the USDA I qouted you from several years back I have no clue what the average is today it is not near what you qouted. Most people actually run this like a business and keep track of input cost not just salebarn check's. We are one of the few businesses that buy retail and sale wholesale the only control your input cost.
My profit's per cow are running around 300 dollars per year this year. We are seeing price's like we have never seen before and this too shall pass if you stay in this long enough.

If my neighbor is off the mark enough to believe he made 12,500 profit off of a $14,000 sale, then he must have miscalculated the other 30 years and his father before that. So, my question is, even with his other income, which isn't huge, if he were under the illusion that his cattle profits were 3 times what they truly were, how does he keep from losing his butt? How does anyone successfully keep a roof over their head, pay their bills, put food on the table, and decide whether it's time to buy a new car if he's that off? I would think at some point there would be an "ah-ha" moment where he realizes something isn't adding up.

[Isomade]

I ain't saying there isn't profit in it. There certainly is. It just isn't a s easy as some would lead you to believe. I can winter a cow for $500. This year I sold calves weaned on the trailer for an average of $976 each. those same calves were bringing $550 just four years ago. No matter how you cut it it's volatile.

[herofan]

I ain't saying there isn't profit in it. There certainly is. It just isn't a s easy as some would lead you to believe. I can winter a cow for $500. This year I sold calves weaned on the trailer for an average of $976 each. those same calves were bringing $550 just four years ago. No matter how you cut it it's volatile.

If you don't mind, would you share some specifics about what goes into that $500 per cow? Thanks.

[Isomade]

I ain't saying there isn't profit in it. There certainly is. It just isn't a s easy as some would lead you to believe. I can winter a cow for $500. This year I sold calves weaned on the trailer for an average of $976 each. those same calves were bringing $550 just four years ago. No matter how you cut it it's volatile.

If you don't mind, would you share some specifics about what goes into that $500 per cow? Thanks.

Hay $120, grain $70, fertilize $125, spray $60, vaccinations $20, diesel $20, mineral $5, the rest varies and is made up in equipment repairs, parts, vet bills ect. Every area has an advantage and a disadvantage. Not knowing where you live i can't tell you how this will compare. Some years that's more, some less, but I would say $500 is a good average for now.