Beef Cow Debt

[Muletrack]

How much debt can a beef cow support?

 

[shaz]

I'd say no more 1K assuming 5 calves and 200.00 profit per cow.

 

[Rafter S]

How much debt can a beef cow support?

$10.00

 

[Muletrack]

I'd say no more 1K assuming 5 calves and 200.00 profit per cow.

Thanks for your answer. 5 calves is a big assumption in my experience. Somewhat south of 1K is probably more like it.

 

[Lazy M]

You hope to get some resale value on the cow herself..

 

[callmefence]

I'm going to need to see the cows credit report and financial statement before I can give a answer.

 

[Brute 23]

You hope to get some resale value on the cow herself..

That is what makes or breaks a cows stats over the years. If she cant hold a resale value it is near impossible to make it up in calf production.

 

[Lee VanRoss]

muletrack> Place debt on a cow only if you have feed on hand to carry the cow until there is a return on investment i.e. sale of
calf or resale of cow. Putting debt on a cow without a secured debt free source of feed can lead to loss of your investment.

Whether you have feed or not there will always be other underlying issues with which to deal such as labor, equipment, risk of death loss...
Good Luck if you decide to jump in! LVR

 

[Lucky]

Last year we profitted a little over $500 per live weaned calf. We figure about $100 depreciation on a cow every year until she gets to a value of around $350, that's the lowest I've had one bring. We try to stay in the $1,000-1,250 range when buying replacement cattle but that's hard to do some years. It's just a big game of keep of Lets keep this ball rolling.

 

[cjhames]

How much debt can a beef cow support?

Depends. Does the cow have a side job in town like the rancher does?

 

[cjhames]

I'm going to need to see the cows credit report and financial statement before I can give a answer.

And soon its ESG score as well!

 

[Stocker Steve]

How much debt can a beef cow support?

R U buying cows or land or both?

Do you have an interest cost or a ROI target?

 

[Muletrack]

Just a random question. Have seen university answers on this question, but not recently. Interest is low, bank will go seven years on cow loans. Retired guys can finally afford to farm, but my cow numbers are low this spring, and I have about twice as much pasture as I need. Would like to add about 40 cows in the next couple of years. Land was a lot cheaper when we bought it 35 years ago.

 

[Muletrack]

You hope to get some resale value on the cow herself..

Would like to be less concerned about resale value of the cow -- and have the cow last a lot longer (12-15 years is a pretty good run).

 

[Stocker Steve]

my cow numbers are low this spring, and I have about twice as much pasture as I need.

Two main financial problems with cows:

depreciation - several ways around that, lucky timing is ideal

wintering cost - I think feed will be high for a couple years, I would look at how much pasture you can stockpile to extend the grazing season

There are several expansion ideas commodity producers use here. I don't think the university experts are up on:
- buy small bred heifers cheap and plan to eat some of them, to improve your herdsmanship
- buy thinner BM cows during the fall run and supplement them, to get appreciation
- buy "good cows" in mid winter before the price starts going up, to halve feed cost

 

[BFE]

Could you run some stockers until you find the cows you're happy with? I can go buy cows somewhere every day. Finding cows I want within a reasonable drive, therein lies the problem.

 

[Brute 23]

Would like to be less concerned about resale value of the cow -- and have the cow last a lot longer (12-15 years is a pretty good run).

You might want to run some numbers on that again. You can cut a cows salvage value in 1/2 or more in heart beat holding a year or two too long. With the low cow calf margins those extra years of calves will not justify that loss.

Cows calf margins are are slim enough as is. You don't need to add a big loss on a cow at the end to the calves expenses.

 

[Otha]

You might want to run some numbers on that again. You can cut a cows salvage value in 1/2 or more in heart beat holding a year or two too long. With the low cow calf margins those extra years of calves will not justify that loss.

Cows calf margins are are slim enough as is. You don't need to add a big loss on a cow at the end to the calves expenses.

So what is the best estimate on when a cow should be sold? Is it based on age, teeth, or condition? I think we would all love to sell a fat 10 year old cow in a good packer market and get $1,000 like we saw a month or two ago here. That works out pretty good if you say paid $1,500 for the cow 5-10 years ago. But is there any way to make that happen more often?

 

[shaz]

You might want to run some numbers on that again. You can cut a cows salvage value in 1/2 or more in heart beat holding a year or two too long. With the low cow calf margins those extra years of calves will not justify that loss.

Cows calf margins are are slim enough as is. You don't need to add a big loss on a cow at the end to the calves expenses.

Agreed. I can write a book on holding on to cows too long.

 

[Lazy M]

Agreed. I can write a book on holding on to cows too long.

Me too! I think it was silver that indicated that he sells cattle when they hit 10yrs. That probably makes financial sense, but I just can't pull the trigger if they keep having calves.. the last couple of years I've been pulling blood samples of the cows whenever I wean calves and sell all of the opens regardless of age. It may seem overly simple, but that is my main cull criteria.