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Cattle loan question?
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<blockquote data-quote="farmerjan" data-source="post: 1388429" data-attributes="member: 25884"><p>I have to agree to some extent with hurley and angus... Maybe keep most or all the heifers from your own cows, and buy half the number of cows you were thinking. Payments would be spread over the cost of all the cows, and you would have some of your own heifers to keep or sell as the market dictates. In this area you can buy some at bred cow sales, mostly held at the stockyards but often from herd sell downs or dispersals. We do not buy the high priced cows, more often we will buy cows that are older and we figure we can make a little on them after a calf or two. If this is land you are getting, you will want to turn some money over from them so I think I would buy some of the less expensive type cows and keep some of your own heifers. You can buy decent commercial cattle here in the 1100-1200 range for bred heifers and 1100-1500 for bred cows. Strangely, cow calf pairs are often a little cheaper, and the calf is already safely on the ground. It is a good as any time to borrow and with the 120 cows you already have, you ought to be able to pay it off in 3 years if you don't pay too much for them. Even figuring calf prices at the market low here, that's about a $5-600 average per calf (hfrs and strs) off the cows. So a 1200 cow will take 3-4 years to pay off, depending on what it costs you to keep that cow per year. And you still have the salvage value of the cow....which now is half of a year ago but still .50 lb avg. We try to stay under 1100 for any cows or c/cf pairs we buy and some are just to turn out on pasture for the year and turn them over, but most we like to keep 3-4 years at least. </p><p></p><p>Alot of it has to do what kind of operation you have and what you feel most comfortable doing; the size and carrying capacity of the place you are getting to put them on and what type animals the fences will hold.</p></blockquote><p></p>
[QUOTE="farmerjan, post: 1388429, member: 25884"] I have to agree to some extent with hurley and angus... Maybe keep most or all the heifers from your own cows, and buy half the number of cows you were thinking. Payments would be spread over the cost of all the cows, and you would have some of your own heifers to keep or sell as the market dictates. In this area you can buy some at bred cow sales, mostly held at the stockyards but often from herd sell downs or dispersals. We do not buy the high priced cows, more often we will buy cows that are older and we figure we can make a little on them after a calf or two. If this is land you are getting, you will want to turn some money over from them so I think I would buy some of the less expensive type cows and keep some of your own heifers. You can buy decent commercial cattle here in the 1100-1200 range for bred heifers and 1100-1500 for bred cows. Strangely, cow calf pairs are often a little cheaper, and the calf is already safely on the ground. It is a good as any time to borrow and with the 120 cows you already have, you ought to be able to pay it off in 3 years if you don't pay too much for them. Even figuring calf prices at the market low here, that's about a $5-600 average per calf (hfrs and strs) off the cows. So a 1200 cow will take 3-4 years to pay off, depending on what it costs you to keep that cow per year. And you still have the salvage value of the cow....which now is half of a year ago but still .50 lb avg. We try to stay under 1100 for any cows or c/cf pairs we buy and some are just to turn out on pasture for the year and turn them over, but most we like to keep 3-4 years at least. Alot of it has to do what kind of operation you have and what you feel most comfortable doing; the size and carrying capacity of the place you are getting to put them on and what type animals the fences will hold. [/QUOTE]
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