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100% of the inputs, what % of the calf crop?

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SBMF 2015

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So I have a neighbor that I consult for. I am also his emergency contact for anything cattle related. This morning he expected me to delay combining corn because a calf had its head stuck in a bale ring.
It literally took 3minutes with a saw zall to free the calf, but it's 4miles each way and stopping to gather tools. It killed 45 minutes this morning.
I decided that if I'm going to be on call for everything, then why not do a little more and make it worth my time.
If I provide all the vaccines, implants, wormer, bulls, and have his cows run with mine 8 months out of the year. What % of his calf crop would be fair? He wouldn't have to worry about hay or feeding cows in the winter. I'd calve them out then haul them to his pasture for summer. Then back to my place for winter.
I was thinking around 50%, but I'm not sure that's enough to cover all the feed / vet expenses?
 
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SBMF 2015

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There are 20. 8 PB Angus, 8 white parks, and 4 blk cross breds. The Parks could be culled out and replaced. 20 pairs is about all his pasture can handle.
 

Rafter S

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I wouldn't mess with any kind of partnership deal, but keep it on a cash basis. There's much less chance for misunderstandings and conflict that way. Charge a flat fee per head for working them, and so much per trip plus plus an hourly rate for stuff like you had this morning.
 

M.Magis

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Rafter is right. Without it being cut and dry, someone will end up feeling cheated eventually.
 
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SBMF 2015

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I wouldn't mess with any kind of partnership deal, but keep it on a cash basis. There's much less chance for misunderstandings and conflict that way. Charge a flat fee per head for working them, and so much per trip plus plus an hourly rate for stuff like you had this morning.
Okay that all makes sense. So what is a fair amount to charge for emergencies? That calf is probably worth $550. It was down and on its way out when I got there. But it didn't take much time just a pain in the butt.
 

SmokinM

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If you charge a fair amount for your time he will owe you more than the herd is worth in short order. If you quit being on call for free he might learn a whole lot about cows quick or make you an offer because he will realize he can’t handle them. Does your consulting/ being on call extend well beyond being neighborly?

edit to add: I have a $65.00 minimum for similar stuff here that I do as part of my business and honestly I am cheap compared to anyone else and really to cheap to make it worth it.
 
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SBMF 2015

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If you charge a fair amount for your time he will owe you more than the herd is worth in short order. If you quit being on call for free he might learn a whole lot about cows quick or make you an offer because he will realize he can’t handle them. Does your consulting/ being on call extend well beyond being neighborly?

edit to add: I have a $65.00 minimum for similar stuff here that I do as part of my business and honestly I am cheap compared to anyone else and really to cheap to make it worth it.
For regular scheduled work I charge $25/hr. When I go pull calves I charge the same as our local vets.
This is kind of just turning into "if I have to baby sit them, I might as well own them" If I have them in my feedlot then I won't get these unexpected emergency calls.
 

Brute 23

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I agree with just billing as you do the work. Pick an hourly rate and say it's this much plus expenses.

On wintering them I'd do a prorated feed bill, plus labo, and housing if you think its necessary. Labor could be accounted for by building it in to the feed cost, housing, or just flat rates like $5 per bale, etc.
 

Rafter S

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Okay that all makes sense. So what is a fair amount to charge for emergencies? That calf is probably worth $550. It was down and on its way out when I got there. But it didn't take much time just a pain in the butt.

I don't think the value of the calf should enter into the equation. It's all about the value of your time and knowledge. Maybe a flat $40.00 or $50.00 for driving over there and working up to an hour, plus your regular $25.00 per hour for every additional hour (plus any expenses, of course)? Or whatever you think it's worth. Make it so you feel like you aren't wasting your time. If he doesn't want to pay it he can find someone else to do it, or learn how to do it himself. If it costs him more than he's making from the cows that's not really your problem.
 

Dave

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So all he does is own the cows and pasture them for 4 months in the summer. What is the value of the summer pasture and a % of return for his $ investment in the cows. The rest should be your portion.
 

Brute 23

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So all he does is own the cows and pasture them for 4 months in the summer. What is the value of the summer pasture and a % of return for his $ investment in the cows. The rest should be your portion.
It's a negative number. They are about to loose money.😉 Owning cattle is not really a passive income stream.
 

farmerjan

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Minimum 1 hr trip for anything that you have to go "fix" ; set your hourly rate. Your time is valuable. Then charge whatever you need to for additional time.
 

farmerjan

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Or 2/3 of the calves and he has to do nothing.... But if something happens that is a freak thing, you could be on the losing end. 50% is not enough. I personally would go with a strictly money deal.
 

Lucky

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I always expect to pay $75-125 for someone to come out quick. This is allot when you compare it to a whole day of scheduled cowboy work is $150. If this fella knows he’s going to spend $75 every time he calls you he’ll learn pretty quick how to handle problems.
 

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