Can I make money buying a ranch

[cow pollinater]

So I guess my question is, can someone work just 12 hour days and make money in cattle? Because 15 hour days means you're working almost 2 jobs. You'd better be making something.

Of course. Granted I don't know any other life but I feel like I'm home plenty and we've always got lots of cattle stuff going on at multiple locations all at once. I think that's just a choices issue, some people make time for family stuff, some don't. That's any business.One key component though is that regardless of size and scope this is still is a way of life and going to brandings and flying to video sales and bull sales and going to our summer country etc.etc. is just something we do a lot of as a family. To me this isn't a job, it's a legacy and while it's often all consuming I think having family involved is critical.

For us it's downtime. We spend so much time dreaming about it in advance and enjoying when it all goes right that it's hard to call it work. It's hard to call it hard work when one kid is driving and the other one is helping you feed or it's you and the wife moving cows around. Work is the part of the business that we don't like that we have to do for it to be profitable... luckily I don't run into that all that often.

 

[cross_7]

The bottom will fall out again trust me.
If you do this long enough you will see the cycles.
It is easier right now.

I talked to a guy today that just leased 3 sections and was talking about buying 150 cows and what it's going to cost to buy cows and how long this market will last
Lots of land going back to cattle
Its happened hundreds of times before and it'll happen again

 

[rww225]

I probably shouldn't say this, but I don't see a guy as successful, who has a family and works 15 hours a day, to get some extra million dollars.

But then maybe I'm just lazy. And maybe some families don't care to see their dad.

Djinwa I take no offense or objection at your comment. Your point is certainly one that I've frequently struggled with. That may be the reason that I'm asking about an alternative. That being said besides trying to be a good husband and father I have always believed that I need to be self reliant in providing for my family. And, while I've never been a farmer or rancher, I know that you have to make hay while the sun shines. That attitude has perhaps both led me to work more than I should and be able to save enough money to retire while in mid life.

 

[denvermartinfarms]

The bottom will fall out again trust me.
If you do this long enough you will see the cycles.
It is easier right now.

I talked to a guy today that just leased 3 sections and was talking about buying 150 cows and what it's going to cost to buy cows and how long this market will last
Lots of land going back to cattle
Its happened hundreds of times before and it'll happen again

I know I wouldn't go buy 150 really nice 1800$ or 2000$ cows right now.

 

[cross_7]

I talked to a guy today that just leased 3 sections and was talking about buying 150 cows and what it's going to cost to buy cows and how long this market will last
Lots of land going back to cattle
Its happened hundreds of times before and it'll happen again

by denvermartinfarms » Wed Jan 15, 2014 10:50 pm
I know I wouldn't go buy 150 really nice 1800$ or 2000$ cows right now.[/quote]
[/quote]

This guys has more money and good sense than I ever dreamed of
I sure wouldn't offer him advice but I don't hesitate to ask

 

[denvermartinfarms]

I talked to a guy today that just leased 3 sections and was talking about buying 150 cows and what it's going to cost to buy cows and how long this market will last
Lots of land going back to cattle
Its happened hundreds of times before and it'll happen again

by denvermartinfarms » Wed Jan 15, 2014 10:50 pm
I know I wouldn't go buy 150 really nice 1800$ or 2000$ cows right now.

[/quote]

This guys has more money and good sense than I ever dreamed of
I sure wouldn't offer him advice but I don't hesitate to ask[/quote]
I'm not saying it won't work for him, I just wouldn't do it myself. I'm buying cheaper cows right now, there not all pretty but they will have a calf evey year and I get 2 of them for what 1 top end cow is costing.

 

[highgrit]

I saw 2 guy's buying cows yesterday at the sale. And they are both oldtimers and have been there and done it, when it comes to cows. I try and sit by them and pick up the scraps. I what I noticed every time when a cow came in that they wanted they bought it. These guy's are tight but when they get home the cows will all get worked. And vaccinated for black leg, they can't afford to lose any. I am off to go help one now, he pinned them last night and said we would work them this morning.

 

[Caustic Burno]

I saw 2 guy's buying cows yesterday at the sale. And they are both oldtimers and have been there and done it, when it comes to cows. I try and sit by them and pick up the scraps. I what I noticed every time when a cow came in that they wanted they bought it. These guy's are tight but when they get home the cows will all get worked. And vaccinated for black leg, they can't afford to lose any. I am off to go help one now, he pinned them last night and said we would work them this morning.

Next Saturday I will be sitting and bidding on SS mid and heavies.
Cheapest time of year to buy cows is right now and next November.
It is easy to hold on to them when you got grass. They are high now I sold a 3 yr old and calf last week.
Bought the cow last year February for 710 bucks she was a 2x 6 she calved raised a great calf and wouldn't breed back.
Liked the cow was going to keep her and the calf after she didn't breed back in 4 months she sealed her fate .
I wasn't disappointed at all in what they brought.

 

[greybeard]

Yep, the bottom will break someday and when it does-------------lots will be upside down in it with just 2 options. Cut losses and sell or hold on for the long term for it come back---neither is all that good of an option------------OUCH!!

 

[TennesseeTuxedo]

Yep, the bottom will break someday and when it does-------------lots will be upside down in it with just 2 options. Cut losses and sell or hold on for the long term for it come back---neither is all that good of an option------------OUCH!!

The overall number of cattle in this country is down now but so is consumption.

More and more of the older producers are retiring or passing away and their kids aren't interested in carrying on with cattle.

Beef exports are up and the Asian markets are becoming more receptive to US beef (or so I have read).

Barring an outbreak of BSE or the like, what would cause prices to really tank? I know drought conditions have an impact on prices but what else should we all be wary of?

 

[Caustic Burno]

Yep, the bottom will break someday and when it does-------------lots will be upside down in it with just 2 options. Cut losses and sell or hold on for the long term for it come back---neither is all that good of an option------------OUCH!!

The overall number of cattle in this country is down now but so is consumption.

More and more of the older producers are retiring or passing away and their kids aren't interested in carrying on with cattle.

Beef exports are up and the Asian markets are becoming more receptive to US beef (or so I have read).

Barring an outbreak of BSE or the like, what would cause prices to really tank? I know drought conditions have an impact on prices but what else should we all be wary of?

I read an interesting article a week or so ago.
It stated that today's beef producer is producing more pounds of beef with 10 cows than 15 40 years ago.

 

[backhoeboogie]

I read an interesting article a week or so ago.
It stated that today's beef producer is producing more pounds of beef with 10 cows than 15 40 years ago.

Consider mortality. Facilities. Technology.

Most angus I remember from 40 years ago were around 700 lbs full grown.

We have advanced. In a lot of ways we have stepped backwards too, in my opinion.

 

[Bigfoot]

Ive done a little playing with my calculator today. It wouldn't take long at all to tie up a million and a half dollars in: 100 head of cattle, the land to run them on, and the equipment to tend to them. With less than $100,000 in gross sales, it wouldn't go far to service that type of an investment.

 

[Brute 23]

Ive done a little playing with my calculator today. It wouldn't take long at all to tie up a million and a half dollars in: 100 head of cattle, the land to run them on, and the equipment to tend to them. With less than $100,000 in gross sales, it wouldn't go far to service that type of an investment.

The killer in the whole deal is the land. What use to be valued as "agriculture land" is now valued as "recreational land". In our area that happened some where around 2000 in the boom. After that point I would say its impossible to start from scratch... at best its a poor investment to start from scratch.

That leads to why so many people use the land as one investment and the cattle as another. You almost have to do it that way.

 

[cross_7]

Ive done a little playing with my calculator today. It wouldn't take long at all to tie up a million and a half dollars in: 100 head of cattle, the land to run them on, and the equipment to tend to them. With less than $100,000 in gross sales, it wouldn't go far to service that type of an investment.

The killer in the whole deal is the land. What use to be valued as "agriculture land" is now valued as "recreational land". In our area that happened some where around 2000 in the boom. After that point I would say its impossible to start from scratch... at best its a poor investment to start from scratch.

That leads to why so many people use the land as one investment and the cattle as another. You almost have to do it that way.

I agree with you both (even though brute your still wet behind the ears )
As I said earlier around a 10% return on your money it tough to do

 

[TexasBred]

Ive done a little playing with my calculator today. It wouldn't take long at all to tie up a million and a half dollars in: 100 head of cattle, the land to run them on, and the equipment to tend to them. With less than $100,000 in gross sales, it wouldn't go far to service that type of an investment.

I wouldn't want to invest that amount of money in land and cattle whether I paid cash, borrowed it or stole it. The odds of every making a profit are slim to none.....until you sell the land and it may be "iffy" then.

 

[WalnutCrest]

Another thing ...

The OP needs to get paid as an "owner" of a business and as a "manager" of the business.

If all the profit is getting paid out as salary, then he needs to sell his investment because it stinks. If all the profit is getting paid out as an owners dividend, then he needs a new job because you can't work for free.

Only when you're able to get paid something as both an owner and as an operator can you say that your excursion into self-employment is really paying off ... the owner and operator each need to get paid.

 

[Brute 23]

Another thing ...
Only when you're able to get paid something as both an owner and as an operator can you say that your excursion into self-employment is really paying off ... the owner and operator each need to get paid.

But we enjoy it.... :lol2: Famous last words of an X-business owner

 

[js1234]

Another thing ...

The OP needs to get paid as an "owner" of a business and as a "manager" of the business.

If all the profit is getting paid out as salary, then he needs to sell his investment because it stinks. If all the profit is getting paid out as an owners dividend, then he needs a new job because you can't work for free.

Only when you're able to get paid something as both an owner and as an operator can you say that your excursion into self-employment is really paying off ... the owner and operator each need to get paid.

I can agree with that.