My thought is if 230 head can't pay for more growth and you don't want to use your money... it's probably not worth doing.
Cattle Expansion Funding
- Thread starter TTBHG
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I've set up a meeting with Farm Credit and my local FSA office. I appreciate those who tried to answer my question instead of worrying about my tax situation, my cash flow situation and my ability to expand.
Awesome. Take your grandkids fishing. My situation isn't yours.
callmefence
Keyboard cowboy
Folks that tell you how you shouldn't use your credit to expand your business don't know business or don't have any credit. Prolly both.
J+ Cattle
Well-known member
Rafter S
Well-known member
. . . or just don't like being in debt and paying interest, even if it is tax deductible.
Rydero
Well-known member
Made a spreadsheet at one point to compare keeping replacements vs incrementally buying some with borrowed money vs buying them all immediately with borrowed money. At that time it showed me profiting $100,000 more over 5 years to just buy them all initially.
I strongly advise against borrowing money to buy cattle if you haven't/can't/won't figure out your true profit/cow for yourself. The OP seems to have their head screwed on right.
Bahahahahaha. Good luck figuring that out... I'm not even sure. Whipskies on dubs!
Nothing wrong with that. I have different accent come out occasionally. I have a hotel-E... Indie one. Not to good on Spanish wish I could do that one. Its not just ebonics it's straight inner black women head roll, face expressions, and all. Have no clue where I got that, I may have been black in a before life.
My friend told me one time I always have black people talking to me. She said they think your black. I said no I just talk to people like they are people, doesn't matter to me what they look like. Some people get so caught up in how people going to see them or if someone see them talking to somebody that's not in their class what they will think.
necattle
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I too had to start and buy cattle out of pocket. I used a local bank originally but now there are loans to help new farmers and ranchers get started. Low inerest rates through the government.
If you use a bank, and times continue with low cattle prices, be aware that some banks will force you to sell all of your calves to make sure you have monies to pay them back. This leads to not keeping replacement heifers and ultimately having to buy more bred cattle down the road. And guess who will help you finance the next set of bred cows? There is a conflict of interest when it comes to Ranchers and Banks. And when a bank refers to you as their "partner" run for the hills!
Of cattle I have bought, I see between a 6-8% loss yearly for the first three years. Opens, small calves, disposition, poor milk.......We all have purchased everyone else's problems at some point in time.
PAY CASH if you can. No bank for loans is the Best Bank.
Keep replacements and never look back.
Try AI's some of your best cows so you have fewer bulls to buy. I'm getting 70% on AI but 50% is pretty common. You will get the replacements you want and you may even want to keep a bull calf or two. AI is a lot cheaper but is extra work.
If you are on a 60 day breeding cycle, consider a 90 day cycle. I do this only to sell all cows not bred up in 60 days but the difference is that you have a few bred late calvers to sell at a higher bred cow price. You've already kept her through the grazing cycle. More and more ranchers are opting for a later calving start times and will want you 61 day and longer breed backs.
Congratulations on entering the Ranching Business. It is a great lifestyle and also a great way to raise children.
Gary
I'm not sure where she's from but I just assumed from her posts that it's a state that allows recreational marijuana use....
You assumed incorrect.
Ohio just voted to legalize recreational marijuana. See a list of every state where cannabis is legal.
24 states and Washington, DC have legalized recreational marijuana. Cannabis is legal for medical purposes in 38 states and DC.
www.businessinsider.com
The United States of Weed
Curious about the status of cannabis? U.S. Map of status of where marijuana legalization stands, state by state in United States.
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I don't have credit and don't need credit and I'm proud of it. 
It's grown it from 0 to 230. I'm pretty sure my plan has worked pretty well this far.
You are right. Why change now?
It was far easier to go from 0 to 230 than it'll be to go from 230 to 750-1000.
That is a lot of growth, very quickly. I'm just overly conservative I guess.
I hope it works out for you.
I don't have credit and don't need credit and I'm proud of it.
Shoot I'm with you, I've never had a loan some reason have excellent credit.
The government way of controlling your money and your time. If you don't have the cash to pay for it you don't need it. Spending money you don't have is signing for time you haven't lived agreeing you will earn the money to re pay. 
I feel like that one guy on here I'd rather spend time doing something like fishing than repaying a loan or something. 
SBMF 2015
Well-known member
I think the most the FSA can lend an individual or entity is $600,000. That may be the cap just on land. I don't quite remember.
callmefence
Keyboard cowboy
There's a big difference in using credit to run your outfit correctly and efficient and using it to buy a boat or even a house.
Lots of folks don't see the difference because they've never had to. Trying to sit back and save for something that can earn you way more income than the interest cost you can really hold you back. Not just lost income but being able to operate correctly.
Your outfit needs to be paying the loan. It shouldn't be coming out of your paycheck.
Lots of folks don't see the difference because they've never had to. Trying to sit back and save for something that can earn you way more income than the interest cost you can really hold you back. Not just lost income but being able to operate correctly.
Your outfit needs to be paying the loan. It shouldn't be coming out of your paycheck.
We know the difference. We would rather own 20 cows free and clear than 2000 with debt on them. We purposely choose to grow off cash flow or what we have saved even if it means slower growth. Especially on cattle... there is not enough juice even on the best day to justify the debt for many of us.
