Calves paid by the pound

[tnwalkingred]

All,

There is a guy in our local area who will give you calves to grow out for a specific time. Once the time is up he picks up the calves and pays you so much per pound that they gained. usually around 50 cents. Do you guys think this is a good idea? If I can find a farm to run them that has good pasture I might do this. I would simply be feeding them pasture (spring thru fall) and hay in the winter. I would keepo plenty of mineral in front of them but no feed. Thoughts?

 

[TexasBred]

Who is responsible for the ones that might die?

 

[tnwalkingred]

I haven't gotten into all the details yet but as I understand it he assumes all responsibility.

 

[kenny thomas]

I almost bet that he will not assume all responsibility. jedstivers keeps 550-600 through the winter so maybe he will jump in with some ideas. 50 is a decent price if you get calves that will grow.

 

[Bigfoot]

Of all the risk associated with cattle, the only one you are avoiding is the price dropping while you have them. If you are renting pasture for them, it will probably be a loosing proposition. A calf on just grass is doing good to gain 50 pounds a month. At least for me that is. Most want average that. Owning the cattle is always a better deal, assuming the price doesn't fall.

 

[dryfork2]

If renting pasture ,your time, your hay and mineral Go with how many you can afford and stand price risk. If your doing the work reap the potential reward. On the other hand if you can't pull it off by yourself then partner up see how it goes
!

 

[Kathie in Thorp]

Pasture feeding isn't too expensive, but in this area, hay feeding would -0- everything out in the winter.

 

[Bigfoot]

The same deal is available here. I'm sure it's available every where, if you know who to ask. I toyed with the numbers a little. It's cheap gain for the guy owning the cattle. Also here the death loss is charged to the man running the cattle, not owning the cattle. If I am doing my own buying, I like my chances better on rate of gain, and death loss. I'm looking for calves with potential on grass. If a trailer load of calves are dropped here most assuredly, I wouldn't like the quality. I have good luck with char crosses, and black sims on grass. I can just see a load of short blacks coming in wearing a bear skin rug. They'd die of old age before they gained on grass.

 

[cross_7]

50 cents is too cheap. Last 2 years around here has been 75-95 cents on wheat pasture, but we don't t turn out on grass so I'm not real sure but I still wouldn't be interested at 50 cents
Who pays for meds?
Death loss ?
Chronics ?

 

[Isomade]

50 cents is too cheap. Last 2 years around here has been 75-95 cents on wheat pasture, but we don't t turn out on grass so I'm not real sure but I still wouldn't be interested at 50 cents
Who pays for meds?
Death loss ?
Chronics ?

95 cents?! Sign me up!

 

[cross_7]

50 cents is too cheap. Last 2 years around here has been 75-95 cents on wheat pasture, but we don't t turn out on grass so I'm not real sure but I still wouldn't be interested at 50 cents
Who pays for meds?
Death loss ?
Chronics ?

95 cents?! Sign me up!

You'll have ask Jed to be sure but I think he did better than that

 

[js1234]

2% death loss allowance would be pretty typical.

 

[3MileRanch]

That kind of deal is available all over at different rates of return. If you get them young and you just need to watch them grow for a season then I would say 50 cents a lb isnt a bad deal. Usually the people I see doing this are those that own their own land though. I see it managed two ways. One is the owner of the calves assumes all the risk for the cattle and the owner of the land assumes all the risk and expense for the land, ie fertilizer, fences, seeding, etc., the other is the owner of the land assumes all the risk for both. The more risk you assume the higher your payout should be. Either way, the weight is by the potload so death is factored in. If the animal dies you dont get paid for it. The weight came in, but it didnt go out. Its a good deal for the owner either way. If your looking to make money I would be the owner, make your money when you buy, send them to a feedlot for 900 days and sell. Even if you only make $50 - $100 a head you are making money. Lots of times the feedlots will do everything from loaning you the money to buy the cows to selling them for you. Feedlots are really in the feed business and need to keep their lots full too get paid. If they have to loan you the money to buy the cows to do it then many of them will. Otherwise they will have to buy all the cows themselves and assume all of the risk as well.

 

[Stocker Steve]

All,

There is a guy in our local area who will give you calves to grow out for a specific time. Once the time is up he picks up the calves and pays you so much per pound that they gained. usually around 50 cents. Do you guys think this is a good idea?

Summer gain gaol can be very cheap on rented land with few inputs, but not much of this available in my area.
Summer grazing education can be another goal, and it sounds like you can practice on someone else' cattle. Young doctors do this all the time!
Should have more clarity on what your goals are before you invest a lot of time.

 

[jasonleonard]

Of all the risk associated with cattle, the only one you are avoiding is the price dropping while you have them. If you are renting pasture for them, it will probably be a loosing proposition. A calf on just grass is doing good to gain 50 pounds a month.

Bigfoot hit the nail on the head with this one. Here in Pa, on lush pasture, (we hardly ever go a week without rain), I am happy to get 2 lb a day on average. That is with crossbred steers and also just enough feed to keep them coming to the load out pens. So far in my experience an engish-continental cross does the best on grass...here anyway. I had some really bad gains on some purebred angus two summers ago. The wildcard is always death loss from health issues. I worried about lightning and theft until I found a great(and reasonably priced) livestock insurance company.

 

[tnwalkingred]

Thanks for all the information guys. I have about 7000.00 dollars budgeted to buy my own calves. My plan is to either find a good place to lease to put these calves on and feed them a couple times a week (since they will be on really good grass) or to leave them at my house and feed them everyday (6 lbs a day grain, pasture, and hay). I'll keep a mineral tub and loose mineral available to them free choice. If I find a place to lease my thoughts are to keep them until the grass runs out this fall. If I keep them at my house I figure I'll only grow them from 90-120 days so I don't go over budget in grain cost. I have about 1000.00 dollars budgeted for grain. I produce my own hay so getting it is not an issue.

Now that you know what my budget is what would you recommend I do. Which weight calves should I try and purchase? Should I buy steers, heifers, or bulls? I have a good place to work them and will keep them in a small lot for the first week to keep an eye on them regardless of where they will grow out at.

Any suggestions would be greatly appreciated. Thanks again in advance.

 

[denvermartinfarms]

If i was going on that budget, i would buy about 15 250lb avg steers and bulls, band or cut the bulls, blackleg them, and worm them good now and again in about 90 days, you can waste alot of feed and time feeding calves that need wormed. finding a place to lease my not happen, around here it is about imposible, I feed alot of these kind of calves, and i can allways figure feeding 5lbs of grain a day no matter how long i own them, so unless the 1000$ is all you want to put into, them keeping them longer and feeding more is just going to make you more money. I would buy them as soon as posible and sell by the end of the year.

 

[tnwalkingred]

All,

I was able to lease around 10-12 of high quality pasture that has a 6 strand fence all the way around it and a good water supply. I plan to buy 10 calves this summer to put on it until the fall. I will check on them every couple of days and feed them a 14% pellet when I do. Hopefully I can find some 3-5 weight calves worth the money. With the high cost of grain keeping the calves here to grow on pasture with less grain will hopefully be more profitable in the long run. I'll keep everyone up to date when I get them bought.

 

[MikeC]

The way death is usually handled in these deals is the calves are weighed before unloading at your place, then weighed again when they leave. You get paid for the pounds leaving minus pounds of initial delivery. The dead ones weigh +/-0. LOL

I've done this a few times and averaged 2 to 2 1/2 lbs. of gain per day. Also gotten 1 and lost my butt.

 

[Rowdy]

5 weights is where you need to be reselling them not purchasing. You will get smoked trying to buy 5 weights.