Annual buy & sell of cattle or animals for profit

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ylekyote

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Hi I'm in western Colorado outside of Glenwood Springs. I'm new to this website...greetings all.

I want to have a few meat animals every year during the summer to eat my hay, fertilize my pasture, have emergency food on hand, and make a small profit that's worth my time. I've got 23 acres fenced of irrigated pasture that makes about 1.5 ton per acre of high quality hay with about 5% weeds and 5% alfalfa. I can't get anyone to cut it timely (if they show up at all) so I don't sell the hay.

I want to buy cattle of some sort every Spring and sell them by first of November. I want to raise it entirely off my field grasses and water I have at no cost. All natural grass fed...no grains and no injections unless required by law. Usually my grass is growing good and water is flowing by middle April. It turns off in September and is plentiful until late Oct or even Nov.

I know nothing about ranching animals. I know how to drive a trailer though, like working outdoors, can chase critters, and have a 3-4 adult cow trailer I can use at no charge.

I want to buy 3-4 weaned cows or other species in April or May, pasture them until October, and then sell at market or otherwise (craigslist?) in Oct or Nov. Double or more my money.

I want to at least double my money every year, and minimize risks whatever way I can. I don't want to keep them over winter because I travel, don't have running water in the middle of winter either, and don't want to feed them hay or other purchased food.

I'm open to using any pasture animal: cows, goats, sheep, lamb, etc. Just as long as I can load them up on my 3-4 adult cow trailer and transport in one trip to buy or sell.

How do I know if this will work? I've done a little searching online and can't find what I'm looking for. I haven't found anyone else doing these small numbers.

I'd appreciate any direction or suggestions for this small annual animal venture! Thanks.
 
Best way to double your money is to fold it in half and put it back in your pocket!

Markets are always changing, People who bought last fall probably all lost money, and that can happen at any time... Calf prices are usually higher in spring (except this one) just because people have pasture to put them on for the summer and don't want to buy earlier and feed them through the winter...

I'd recommend starting small, whatever you do, and you can see if it works out for you

Welcome to CT anyhow!
 
What is the cost of the irrigation? You say in one spot that you have 23 acres of irrigated pasture, then in another that you want to raise cattle on your field that you have at no cost. If the land is irrigated, who is paying to run the irrigation system? I believe that could really cut into what you could possibly get on return for the animals.
 
welcome to the board. I see so many things wrong with the picture you've been painted of how the cow business operates.
the time required to finish a beef is much much longer than MAY to NOVEMBER. Also no injections will diminish your profit even further. This myth that unfortunately a vast majority of people believe is unhealthy is exactly opposite. Far more animals are unhealthy from not receiving vaccines and antibiotics than you were led to believe. A healthy herd is a profitable herd. when you bring animals in you risk them transmitting something to the animals already there. You are limited on space and can only raise 8 to 10 animals one dies and all of your profit is gone. again welcome to the forum and don't get discouraged just start slow.
 
You wont make any money much less double your money buying 4 yearlings and feeding them grass for 6 months.
 
About the only way to make that work on this scale would be to buy them bigger (say 800 pounds) and sell them as grass fed beef in the fall. But that takes a fairly good size population to market them too.
 
Thanks for the advice.

The laws and requirements to grow hemp of any sort is stupid. Plus my soil and water is to alkaline. I'd have to amend it so much it's not worth it. Plus did U mention how stupid the growing rules are? Lol. I wish I lived back in George Washington's era where freedom on one's land was just that. Not this BS we land owners have to deal with now. Nothing is really every owned anymore...it's just regulated and taxed until death and often confiscated after that.

It seems that on-hoof prices here are $1.28 to $1.46 per pound for heifers. Does this help my question?

I'd actually prefer to raise lamb/sheep for auction but I don't think my 4-wire barbed and straight fence will contain them. I have a neighbor with more irrigation and he fertilizes his field so the grass, later in the summer, tends to look taller and greener.

I'm unsure how natural I can raise sheep. I don't want to give them drugs unless actually sick.

Guess I should go to that forum and ask.
 
ylekyote":1whv3m8i said:
I want to at least double my money every year, and minimize risks whatever way I can.


So does everyone.

Beware of people who tell you that you will certainly make money if you buy their animals.

I lived in Rifle in '82, '83. Eldest daughter was born in Glenwood Springs. Love that area. I never raised cattle there.

With your plan you are buying when cows are in peak demand. You are selling when everyone else is selling. For the same reasons. You will essentially be buying high and selling low.

Where is your market? Nearest sale barn? Craigslist is not something for you to count on. You need a viable market for your animals. If it is the sale barn you are at the mercy of the market during a bad time of the year.

Welcome to CT
 
Gotcha. What is the spread if ROI expected in best case scenario?

There are two auction houses near me. One in Delta (2 hours) and other in Loma (1.5 hours).
 
Considering you say you have no experience, and assuming you have no facilities, it's more a matter of how many years until you don't lose money.
Just the basics to keep you and your animals healthy and safe can eat into profits quickly when you're talking about a few calves.
 
ylekyote":1gwtj62q said:
Gotcha. What is the spread if ROI expected in best case scenario?

There are two auction houses near me. One in Delta (2 hours) and other in Loma (1.5 hours).


"Do not look into the light!" LOL

It would be good to just go and sit through several auctions. Talk to the people there if someone attempts to strike up a conversation with you. There is much to be learned from seeing what sells and what gets docked.

Remember that it takes two or more bidding competitors for a desired animal to get the prices going. The ring man sets the bidding to start based on what he thinks the floor price is. If there are no takers the floor price drops.

A good mentor in your area that knows the business is valuable. You could invest a few hours helping him rebuild a fence or something of that nature. There's no telling how he would show the appreciation.

A few weeks ago I got a call from a lady I had never met. It was about her step father that had passed on. He had moved north about 100 miles 25 years ago. He had some cattle tools he wanted me to have and she is going to bring them down next time she heads this way. Probably nothing of value but it has value to me.
 
ylekyote":3ajgga6d said:
Gotcha. What is the spread if ROI expected in best case scenario?

There are two auction houses near me. One in Delta (2 hours) and other in Loma (1.5 hours).

Today's market
Next fall maybe another story
April 1 - sept 1 150 days at 2# of a gain per day = 300#
Buy at 500# in April cost 900-1000
Sell at 800# sept 1 -1100 -1200
With the market it's a gamble
 
the closest thing to profit is to find some folks who are interested in grass fed beef,and in the fall sell them quarters. you will not double your money, but it is a solution to your problem, and you will get some money+some beef+ the joy of raising cattle and receive a good word from your customers afterwards.
 
With no experience I would look to partner with someone currently raising livestock in your area be it cattle or sheep.
Maybe you could rent them your pasture for the 1st year or 2 and learn from them along the way, before you jump in
and do it yourself. Plus that will build a relationship with a local mentor to turn to when you do start up and need
buying and selling advice or anything else.
 
Your water shares are worth more than what you would make on any livestock. Lease out your shares for a good ROI, and you wont have to deal with the water company and chasing water if you're surface irrigated.

Your pastures probably don't really need to be irrigated most years around Glenwood, depending on your grass type. Lots of people at lower elevations looking for summer pasture, especially horsey folks. Lease the pastures for horses for the summer, again way more money than you'll make on a few head of livestock. You dont really have the fences for sheep and goats.
 
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