KentuckyRookie":1l4sazjo said:
Well....I am confused. Are you telling me that the only way to make any money is to spend money for ten years in the hopes that someone might buy something for above slaughter price. Is that the honorable way to do things? I suppose the men that had to go through dispersal sales after 40 years experience doing this will say the same thing right? I think someone makes money otherwise you guys would not even be here on this board. You would go get a part time job to make your bills. I just love how some vets try to steer people away from this so called hobby. Calling it a living and telling me that you cannot make money is not comical. I appreciate those opinions that generate positive thinking and I don't mind not knowing things because all of us can learn. Making improper comments in your posts ONLY CEMENTS THE FACT THAT I AM RIGHT about the money making part. I am assuming that most of you guys lose money is that correct?
Making money is not a prequisite for being on the board.
I recently went to seedstock after 15 years in commercial - I wouldn't EVER recommend doing it differently. The investment was $60,000. Considering the cost of capital, it may be some time before I make money. But before I spent a dime for that, I had a business plan for how I would market what I produce.
By way of demonstration - there was an EXAR cow that sold for $6000 at the boyd sale and a Fox Run cow that sold similarly. Guess who bought them? Express ranches bought the EXAR cow and Fox Run bought the Fox Run cow. I have no proof of this, but I'll bet Boyd bought that animal as a heifer calf off the farm for . . . $6,000. In the end, nothing was really sold, but it looks like you could get $6,000 for a cow. However, EXAR can now market a cow to you that had a $6,000 valuation last year when the only reason it had that valuation was because they bid it up.
I'm not saying there isn't money in seedstock, but EXAR will never buy one of my cows and, even if they did, I would have had to buy one of theirs first so I have a different "market".
When you buy a business, before you purchase a "production unit" (which a cow is) you have to know who will buy your product and how much they are willing to pay. In your case, it seems you're investigating production units before knowing who will buy the product and why they will buy from you. The cart may be before the cow so to speak. That's what I hear this entire thread warning you against and you keep pushing to know what production unit to buy. They are wisely trying to shift your focus. You may certainly decide if you allow that to happen.
In the meantime, I haven't given up my day job. 90% of farmers by number still have a day job to help pay the bills.