After reading the "making money" thread and other discussions from time to time, do I understand correctly that people don't make much profit with cattle, but they do it because it's their passion? If so, I don't understand how people stay afloat financially all their lives with something that doesn't make any money, even if they do have a town job to back it up.
Cattle Passion/Money
- Thread starter herofan
- Start date
Help Support CattleToday:
I've got a few expenses that might be finding their way in the wrong column, but to be perfectly honest a cow calf operation is probably running at break even. Current prices this week, would probably net $100-150 profit on a cow. That's actually not terrible. When I multiply $150 by how many cows I have, I'm ashamed of how hard I had to work to get it.
I almost started a thread about a group of calves I bought back in early April. Spent most of a week gathering them. Worked them. Settled them, and got them eating. The market favored me the whole way, and I kept them exactly 49 days. I made $20 apiece.
I do right well with bred heifers, but last year was a break even on that.
I'm probably a poor manager as daddy would say, but I am honest. Not much to be made on cows.
I almost started a thread about a group of calves I bought back in early April. Spent most of a week gathering them. Worked them. Settled them, and got them eating. The market favored me the whole way, and I kept them exactly 49 days. I made $20 apiece.
I do right well with bred heifers, but last year was a break even on that.
I'm probably a poor manager as daddy would say, but I am honest. Not much to be made on cows.
Rafter S
Well-known member
There's a little money in it in the right circumstances, but there are definitely easier ways to make a living.
This is actually my favorite subject on here, that always seems to reinvent itself. Most of the others I grow tired of. Some people are in the: 2 bags of mineral, 5 rolls of hay, and a pound of staples club. If that's what they think they are spending, they're making money hand over fist. I leave a couple of hundred dollars in town every time I go. Bottom line is, it all adds up.
Herofan,
Passion plays the largest role I would suspect for the vast majority of producers. It becomes evident really quickly that one will seldom become cash rich playing with cattle. But wealth can be accumulated over time. I (by I, read wife) asks regularly: " why do you work so hard messing with those cows and pastures? If you just sold all that mess, then we could just buy a house out at the lake and spend our time there."
Sadly, that just doesn't interest me. I would go stir crazy. My cattle and lands are my version of bass boats, vacation houses, RVs, or whatever else other people throw their free money into without concern for optimal ROI. Different strokes I guess.
I maintain a tremendous level of satisfaction for this lifestyle. Fulfillment, self actualuzation...especially since I changed career fields 12 years ago, leaving the trades for a career field with no real manual labor.
Passion plays the largest role I would suspect for the vast majority of producers. It becomes evident really quickly that one will seldom become cash rich playing with cattle. But wealth can be accumulated over time. I (by I, read wife) asks regularly: " why do you work so hard messing with those cows and pastures? If you just sold all that mess, then we could just buy a house out at the lake and spend our time there."
Sadly, that just doesn't interest me. I would go stir crazy. My cattle and lands are my version of bass boats, vacation houses, RVs, or whatever else other people throw their free money into without concern for optimal ROI. Different strokes I guess.
I maintain a tremendous level of satisfaction for this lifestyle. Fulfillment, self actualuzation...especially since I changed career fields 12 years ago, leaving the trades for a career field with no real manual labor.
bball":3ik8pt90 said:
I felt as passionately about raising tobacco once as do cattle. Don't raise tobacco anymore. I felt as passionately about about raising foals as I do calves. I don't have a mare on the place today. Can't see myself ever not having cows though. I have been fighting the urge to cut back for about a year now. Not sure that I won't.
Aaron
Well-known member
Money can be made on the right cows in the right place, but don't tell the government I said that.
It cost me gross sales on one calf to make the land payment per animal unit.
Wheather it be 10 acres and 1 cow or 100 cows and a 1000 acres.
End of the day. 1 calf to pay for the amount of land to run one cow.
Here where I'm at anyway.
Further west you can't even make your land payment.
Maybe go east and it's better, idk.
Figure in what it cost to keep that cow a year and your losing money.
If your land it paid for then maybe you can show a profit.
If you're setting on a chunk of cash and not drawing any interest then maybe buying land and cattle can give you a better return ?
But as a business startup and buying land and cattle, I can't make it show a profit
Wheather it be 10 acres and 1 cow or 100 cows and a 1000 acres.
End of the day. 1 calf to pay for the amount of land to run one cow.
Here where I'm at anyway.
Further west you can't even make your land payment.
Maybe go east and it's better, idk.
Figure in what it cost to keep that cow a year and your losing money.
If your land it paid for then maybe you can show a profit.
If you're setting on a chunk of cash and not drawing any interest then maybe buying land and cattle can give you a better return ?
But as a business startup and buying land and cattle, I can't make it show a profit
Jogeephus
Well-known member
I must be in the minority because I don't have cattle for any other reason than to make money and when they can't do that then I'll do something else. Today I picked up a pallet of mineral and the whole time I was thinking how this expense was going to cost me a calf and that bothered me for some time. Cattle are also one of my easiest sources of income. Granted, they can be a pain in the azz from time to time but for the most part it seems they know how to be cows without my help.
boondocks
Well-known member
I sure as hale don't know how you can make a buck in climates like mine where you gotta feed hay half the year. And looks like we have another spring/early summer where it's too dang rainy to get the hay cut. And no one wants to do it anyway. sigh.....
Caustic Burno
Well-known member
Bigfoot":2sh769k2 said:
The real money here is in paying their upkeep they pay the taxes.
After all expenses are paid they make about a 100 bucks profit per head.
If you really want to know start their own checkbook.
True Grit Farms
Well-known member
Jogeephus":1g1agql7 said:
Watching pine trees grow is boring, and they have a poor flavor at best.
Had the house, the job, the lake, the boat, traveled. We were fortunate to retire early and said buh-bye, City Life. Think "Green Acres". Bought a section, built a house, bought a tractor, bought 33 bred cows. Who knew this would become my passion? Do we make money? Sometimes. Do I question my sanity when I'm breaking ice in sub-zero temps, sweating & filthy in the summer, generally covered in various cuts/bruises & crying when a fave heifer gets hit by lightning or I lose a calf, despite my best efforts? Absolutely! And I wouldn't change a thing.
True Grit Farms
Well-known member
TCRanch":22ozaqpp said:
We had a bad run last year and my wife was determined not to loose another calf. She was checking a heifer every hour, and between 10 and 11pm the heifer calved and couldn't get up to clean the calf. That hurt her bad, but since that one we haven't had any more problems...yet.
hurleyjd
Well-known member
The only ones making money is the fertilizer dealer, feed dealer, equipment dealer. Oh yeah you can be in the business to save on income taxes. But you have to spend a lot of money to lose a lot of money. Example several years ago when I was writing the check for $18000 for income taxes. I asked the CPA what my tax bill would be if I did not have $27000 in farm losses. He crunched the numbers and came up with about $1600 more in taxes. So I spent $27000 dollars to save $1600 makes sense but I am still trying to save on taxes. I am grazing the hay meadow this year and plan to sell all of the cows.
