A tough story and a sign of things to come

[js1234]

Dont get wrong, I have nothing against ear rings. My wife and daughters wear em all the time.

Kind of my way of thinking on them too.

 

[jedstivers]

That was fairly easy to see the ending coming.

 

[Aaron]

Judging by the locations listed by the responses (with an exception of Aaron), I can only imagine its tough to comprehend raising cattle in the ND/MN - Canada area. Its typically not an environment where you can pasture graze cattle for over 5-6 months a year. Most area's after $8 corn in 2012, its hard to find a pasture that holds more then 10 cows. Sugar beets and row crops make of 95% of the landscape in the tri-state area. The only land left it what was deemed impossible to farm. Point being, a ranchers margin changes/tightens the farther north/colder it gets. I agree those who thought they'd get in at $3000 bred heifers should have known it'd be an up-hill battle. But I'd also note, at least for myself my expenses went up with cattle/grain prices, but they seemed to have forgotten to come down with cattle/grain prices. And its easy to say they got too big too fast. But I can also understand how one could justify it, if its 40-50 cows and a 2 full time jobs - kids in daycare, or go for gold and get 300 cows while you and your family live the lifestyle you're aiming for, working together and raising your kids together.
If you've got everything paid for, and own your own land/ pasture (whether its 10 cows or 300) I'm sure it is easier to cash flow, but if you're fighting tooth and nail to get something started and want to be established before its time to retire, I think its safe to say your struggling.

You either do it with cash on hand and completely ignore the notion of 'keeping with the Jones' or you buy a job for the rest of your life and become best friends with your lender. Many choose the latter - problem is they bought themselves a job that has a hard time paying itself back. On the other hand, married life doesn't lend itself to the first option - or at least not for very long.

 

[Cross-7]

I recently heard someone say
" if you cant stand a 100k loss then you don't need to be in the cattle business"

I've been thinking about that and there is a lot of truth in that.
That doesn't hold true for guys like me that just play with a few cows or calves.

But a guy that's in the cattle business fulltime making a living and a 100k is the difference between prosperity and bankruptcy then your cutting awful close.

 

[JWBrahman]

I watched the video, but didn't read the article. The guy had an ear ring, and was talking about he bought cattle and leased land. 2 + 2 = He had no idea what he was doing.

So he obviously deserves hard times, right? Because he has an earring, bought cattle, and leased land?

I am with TT on this and get no joy from the suffering of others. If so much of our economy wasn't locked up by the big boys this story could have had a happy ending. Every last cattleman on this site is in for a rough patch. I hope others have more of God's mercy in their hearts if you ever need assistance.

 

[Bigfoot]

I watched the video, but didn't read the article. The guy had an ear ring, and was talking about he bought cattle and leased land. 2 + 2 = He had no idea what he was doing.

So he obviously deserves hard times, right? Because he has an earring, bought cattle, and leased land?

I am with TT on this and get no joy from the suffering of others. If so much of our economy wasn't locked up by the big boys this story could have had a happy ending. Every last cattleman on this site is in for a rough patch. I hope others have more of God's mercy in their hearts if you ever need assistance.

My comment was out of character, and in poor taste. I do suspicion that he lacked the background knowledge he needed to be successful. That may not be the case,

 

[TennesseeTuxedo]

Another that comes to mind; "There but for the grace of God go I".

 

[Caustic Burno]

Another that comes to mind; "There but for the grace of God go I".

The quote of a 16th century preacher burned at the stake

 

[TennesseeTuxedo]

Friend of yours CB?

 

[JWBrahman]

It just feels wrong to knock somebody trying to do better for his family. Any one of us can make the wrong mistake at the wrong time. It's part of being human.

 

[Caustic Burno]

Friend of yours CB?

Not really that quote just didn't work out well for John Bradford who made it and many think that is biblical quote.

 

[TennesseeTuxedo]

A great quote need not be biblical, you reference Patton quite often.

 

[Caustic Burno]

A great quote need not be biblical, you reference Patton quite often.

Didn't say it did just many think that one is

 

[Ol' 243]

I feel bad for the guy, but he ain't gonna be the only one if these prices stay like this for a while. I like em now cause I am buying, but a year from now I ain't gonna be happy.

 

[True Grit Farms]

A lot of folks said when calves were high you need to be able to make it one a $1.00 a pound. There's a bunch of good advice on here that not many folks listen to.

 

[TexasBred]

A lot of folks said when calves were high you need to be able to make it one a $1.00 a pound. There's a bunch of good advice on here that not many folks listen to.

Sounds like this old boy has been listening to the guys that say "Buy when they're high and sell when the prices drop". At least that's what he's doing.

 

[JWBrahman]

Nobody was in the least bit interested when a bunch of us said to sell out and buy back in 2 years later. I know that is exactly what Caustic and I were telling people when it got really crazy.

Where are all the posters who used to ridicule us when talking about being able to make money when live prices were $0.80-$1.00 and feeders are $1.20?

 

[Cross-7]

A lot of folks said when calves were high you need to be able to make it one a $1.00 a pound. There's a bunch of good advice on here that not many folks listen to.

Sounds like this old boy has been listening to the guys that say "Buy when they're high and sell when the prices drop". At least that's what he's doing.

Used have a neighbor that's retired now but he told me that very thing 20 years ago.
He had 5 sections or more and he said don't fall in love and marry your cows.
When they get high and everybody buying in it's time to sell out.
When they get cheap and everyone is selling out buy back in.

 

[True Grit Farms]

Well I screwed that one up, and I knew it. The boss was chewing me for selling as many as I did. You don't make any money if you don't sell.

 

[Caustic Burno]

My crystal ball sees prices stabilizing next year all of those high priced feeders will be in the septic tank.
Lower prices today will start to make the imports cost prohibitive on shipping.
Going to be hard for those who have a note on cattle till then.