Buying land for cattle
- Thread starter Cross-7
- Start date
Figuring around 3 acres per pair, which is pretty easy to do with decent pasture management, you're looking at 3-6k, most would run around 4.5k. We just sold 160 acres about half logged off timber grown up into scrub and the other fair pasture (needed fertility and lime) for 186k, no buildings, fairly decent fence and a couple of silted in ponds.Cross-7":3ct2atlm said:
backhoeboogie
Well-known member
Here, I am figuring cows can pay $4700 per acre with the current interest rate, if the place is already decently fenced and has decent grass.
backhoeboogie
Well-known member
Cross-7":58mvcsq8 said:
2 1/2
Dave
Well-known member
Most of the ranches I see advertised for sale work out to be about $10,000 per pair. I just don't see that working out no matter how much I sharpen my pencil. I am thinking that $6,000 would be about the limit.
poorfarmer
Well-known member
Just to clarify you are looking for the price of land if you worked for free for the next 30 years and all profit went to paying off the land. No income. Correct?
backhoeboogie
Well-known member
poorfarmer":3rdkm3ay said:
At today's prices, there would be some income. But just to clarify, I have made way more money buying and selling land than I have made on cattle. I was really blessed this past year.
poorfarmer":38aphskx said:
Correct but that's where it's get blurry
15yr note vs 30yr
Down payment repaid
Or pay cash and pay yourself back with interest
I'm figuring a 15 year note at 6%
Cows pay it all, anything that is spent to maintain the property, but only the necessities.
Any improvement that would add value the property but not necessary for cattle wouldn't be charged to the cows.
Dave":rdduhbf1 said:
That's what I'm finding here also
The only way I see the cows making the payment is only borrowing 5k per pair and after the note is paid off they begin to pay me back.
That's a long road and it'll take several generations of cows so then opens another can of worms when you figure cost of replacements, bulls and etc
But the land should appreciate over time as well,
So that's why I asked
Too many factors and I get lost
backhoeboogie
Well-known member
If you borrow $400,000 for 20 years at 4.5% interest, you're looking at $2530 per month. Or say 3 calves per month. 50 cows is going to yeild around 4 calves per month. You'll need extra cows to compensate for attrition and replentish your herd. So if you can buy a place for $400,000 or less and stock around 60 head on it, you could make very little profit when you consider fertilizer and upkeep, costs. You have to be thrifty.
If you don't have the cattle to stock the place with, you're looking at even more expense.
Last spring calves were averaging around $1370 each when sold. At the end of summer that was more around $950. There was a time when we were tickled to average $500 for commercial calves. Its pretty hard to "count you chickens before they are hatched" 10 years from now. No one for sure knows what the market will do. That's the real problem with buying land.
I got "lucky". Bought a place and over doubled my money on it in a little over 3 years. Put a lot of work into it. Buying property is different than selling the family farm. There is not years and years of emotional investment and family memories. There's no one to answer to when you sell something like this.
A whole lot of people here on this forum will tell you to never borrow money. I disagree but I also think no one should hock themselves up to their arm pits. Don't bite off more than you can chew if all the cows are wiped out in wild fire.
I had to borrow to buy the place I bought. I sold it for a huge profit. Each to his own
If you don't have the cattle to stock the place with, you're looking at even more expense.
Last spring calves were averaging around $1370 each when sold. At the end of summer that was more around $950. There was a time when we were tickled to average $500 for commercial calves. Its pretty hard to "count you chickens before they are hatched" 10 years from now. No one for sure knows what the market will do. That's the real problem with buying land.
I got "lucky". Bought a place and over doubled my money on it in a little over 3 years. Put a lot of work into it. Buying property is different than selling the family farm. There is not years and years of emotional investment and family memories. There's no one to answer to when you sell something like this.
A whole lot of people here on this forum will tell you to never borrow money. I disagree but I also think no one should hock themselves up to their arm pits. Don't bite off more than you can chew if all the cows are wiped out in wild fire.
I had to borrow to buy the place I bought. I sold it for a huge profit. Each to his own
Ol' 243
Well-known member
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Ol' 243
Well-known member
I'm extremely interested in this thread. I am currently looking at a 52 acre tract, it is about 90 percent of lightly neglected pasture. A little bush hoggin', little lime and fertilizer and she's ready to go. Fence is in great shape on 3 sides, one side has to be completely redone. Water has to be ran, but county water is on the road it is on. I am currently looking at 2300.00 bucks an acre. Around here you can run a pair every two acres. Throw me some numbers on rough cost to buy the cattle to stock it, and number of years to make it pay the land off. I know that upkeep can't be known, but just need to get close.
Neighbor just sold his for $350 an acre before the end of the year. Could probably run a pair for the summer on 6-8 acres as it is very run down.
cowboy43
Well-known member
If my memory serves me correctly a banker told me they figure it takes 5 years to pay a cow off if prices hold. Lot of unknowns could extend the pay off time. Example in Match of 2015 I bought pairs for $3600 hoping that 3 calves at $1200 would bring $3600, In Dec I sold their calves for $750 , at that price it will now take 5 years to to bring $3600 and that is with a 100 per cent calf crop. Keep in mind this does not include interest, lease ,pasture upkeep, loss , medical expenses , tractor and truck fuel expense or feed expense.
I think I just figured out I will be selling these cows for slaughter before they pay off.
I think I just figured out I will be selling these cows for slaughter before they pay off.
JMJ Farms
Well-known member
Bigfoot":knx6rso3 said:
2 acres per pair here. 1 1/2 Ac per pair with good rainfall. I can't figure out how you can pay for land with cattle here either. It's hard enough to make the cattle pay for themselves on leased land. I dont doubt some do it in other states but I sure don't know how. A big factor here is that it costs $300 a year to feed her through the winter alone.
Yea, I've actually thought about this thread quit a bit. If I could rent pasture (which there's none to rent). It'd be $50 an acre. If I bought cows to put on it, it'd take a 95 plus % calf crop, and a dollar and a quarter or more pound calves to break even. I closed my books on 2015 a couple of weeks ago. I usually figure what I have in my cows per head, and it slipped my mind this year. I can tell you it's a bunch.
A 156 acre place up the road that's all grass.
About half or two thirds is former cultivation and now in old world bluestem and has been used for hay.
Two ponds and one is new and supposedly holds water year round.
Rural water line runs along the property but can get pricey to water cattle
Fences are good on 3 sides but one side neighboring farm ground needs work
The area is 8-10 acres for a cow on an average year.
The improved grass on this place may do 6-8
So say 7 acres
Listed at 1200 an acre but I figure 1100 should get it
At 1100 per acre
A pair to 7 acres
7700.00 per pair
If I'm wrong and it takes 10 acres
11000 a pair
I've chewed on it awhile
About half or two thirds is former cultivation and now in old world bluestem and has been used for hay.
Two ponds and one is new and supposedly holds water year round.
Rural water line runs along the property but can get pricey to water cattle
Fences are good on 3 sides but one side neighboring farm ground needs work
The area is 8-10 acres for a cow on an average year.
The improved grass on this place may do 6-8
So say 7 acres
Listed at 1200 an acre but I figure 1100 should get it
At 1100 per acre
A pair to 7 acres
7700.00 per pair
If I'm wrong and it takes 10 acres
11000 a pair
I've chewed on it awhile
