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<blockquote data-quote="3legdonkey" data-source="post: 856232" data-attributes="member: 17061"><p>I am glad to hear your figure of 90%. After a lot of reading and talking that is the exact number I came up with. I am actually only expecting 60% the first year as I have virgin heifers and bull. So unless I play them sweet music and set out candle and incense I do not think they will hit 90%... grin.</p><p></p><p></p><p>You and I may have a number of differences on our cost per cow. </p><p>1. I have 680 acres of lush grass (warm and cool season with large stands of red clover) that sits unused that I just mow every year. I do not believe that 17 cattle will make much of a dent in that so I do not intend to feed much supplemental feed.</p><p>2. My vet bills will be minimal as my partner does all of the vet work and I just buy the medicine at wholesale.</p><p>3. I do have both a sunk cost in the land, as it is paid for and an opportunity cost for not using it in a more profitable endeavor. But on the other hand I wish to use the land lightly and value my enjoyment of the property more than the total cash I could wring out of it. So I am not sure I should charge that cost to each cow as I was paying it before I got them.</p><p>4. The money I spent on the cows (opportunity cost) was just sitting in the bank getting negative interest after inflation. If I end up at the sale barn (absolute worst case) I will make approximately 16% on that money year over year after paying all costs I have so far figured I might incur.</p><p>5. I am suspicious the scale of our operations are significantly different. I barley qualify as a hobby farm whereas you are probably a very large operation being run as a business.</p><p></p><p>With all that said, I must admit, that I may be way off in my thinking. It is very likely there are costs I have not figured into the equation yet and after a few years I will have a better grasp of my real costs. I will also admit I do not include my or my partners time into the equation as both of us are approaching this as an enjoyable activity we will make money off of. </p><p></p><p>So in four years ask me how far off I was and I will give you what should be a very interesting answer... Big Grin.</p></blockquote><p></p>
[QUOTE="3legdonkey, post: 856232, member: 17061"] I am glad to hear your figure of 90%. After a lot of reading and talking that is the exact number I came up with. I am actually only expecting 60% the first year as I have virgin heifers and bull. So unless I play them sweet music and set out candle and incense I do not think they will hit 90%... grin. You and I may have a number of differences on our cost per cow. 1. I have 680 acres of lush grass (warm and cool season with large stands of red clover) that sits unused that I just mow every year. I do not believe that 17 cattle will make much of a dent in that so I do not intend to feed much supplemental feed. 2. My vet bills will be minimal as my partner does all of the vet work and I just buy the medicine at wholesale. 3. I do have both a sunk cost in the land, as it is paid for and an opportunity cost for not using it in a more profitable endeavor. But on the other hand I wish to use the land lightly and value my enjoyment of the property more than the total cash I could wring out of it. So I am not sure I should charge that cost to each cow as I was paying it before I got them. 4. The money I spent on the cows (opportunity cost) was just sitting in the bank getting negative interest after inflation. If I end up at the sale barn (absolute worst case) I will make approximately 16% on that money year over year after paying all costs I have so far figured I might incur. 5. I am suspicious the scale of our operations are significantly different. I barley qualify as a hobby farm whereas you are probably a very large operation being run as a business. With all that said, I must admit, that I may be way off in my thinking. It is very likely there are costs I have not figured into the equation yet and after a few years I will have a better grasp of my real costs. I will also admit I do not include my or my partners time into the equation as both of us are approaching this as an enjoyable activity we will make money off of. So in four years ask me how far off I was and I will give you what should be a very interesting answer... Big Grin. [/QUOTE]
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