cattle paying for land?

[Kingfisher]

Pay em to take em or not if you can buy that much Cow land for $500 a month you should buy it if you think you can make grass for cows.....you can't even buy bullets at walmart so any kind of good dirt for that much $ if it even looks good to you might be an opportunity you may never see again soon.

 

[jasonleonard]

When I was a little younger I started buying farms and wooded ground. At the same time all my friends were buying Harleys, boats, hunting camps in the mountains, and summer homes at the lake. Everyone made fun of my farming side of my business( with those 70 and 80 cent calves).
Long story short...Land values skyrocketed here the last few years because of something called Marcellus shale. I am 43 years old and have close to 800 acres of my own, and some other land in a trust, so I am very thankful for my love of owning land and the roller coaster cattle business. I think land can be used as a savings account in MOST situations. Land doesn't drop in value like all the new things we always think we need.

 

[TennesseeTuxedo]

Good move on your part Jason.

 

[cross_7]

If I could get my hands on it I'd take my 401k and buy land

 

[jedstivers]

Land hardly ever pays its own way but if you can ever get started buying you can use the equity in it to buy more. Land is everything in our business.

 

[shaz]

When I was a little younger I started buying farms and wooded ground. At the same time all my friends were buying Harleys, boats, hunting camps in the mountains, and summer homes at the lake. Everyone made fun of my farming side of my business( with those 70 and 80 cent calves).
Long story short...Land values skyrocketed here the last few years because of something called Marcellus shale. I am 43 years old and have close to 800 acres of my own, and some other land in a trust, so I am very thankful for my love of owning land and the roller coaster cattle business. I think land can be used as a savings account in MOST situations. Land doesn't drop in value like all the new things we always think we need.

Good way to look at it. I just want the kids to understand that the farm is their inheritance and they better not have any smart remarks about rednecks or cows or that I have a white collar job and cow manure on my shoes.

 

[backhoeboogie]

Lots of kids sold off the old man's place and they are crying now. Gas here is the same way.

There's big money in limestone. I sold over $180K worth of patio stone and building stone off of 3 1/2 acres of hill top that I paid $3,000 for several years back. Whodathunkit on that when I bought it?

Cattle are one avenue. There are other ways to make money with land besides gas and royalties.

If I get hungry, I'll flip a few more slabs of stone.

Cedar post prices are totally out of control. I am careful now on pushing cedar. Staves are good money too if you got the time. If you take the time.

There is some romanticism to having cattle. They aint much fun when someone runs off the road at 2 a.m. and tears out several fence posts then drives off. Murphy's law kicks in and you are fixing fence and rounding up cattle in the dark on a rainy night. Ends the drought tho!

 

[shaz]

Lots of kids sold off the old man's place and they are crying now. Gas here is the same way.

There's big money in limestone. I sold over $180K worth of patio stone and building stone off of 3 1/2 acres of hill top that I paid $3,000 for several years back. Whodathunkit on that when I bought it?

Cattle are one avenue. There are other ways to make money with land besides gas and royalties.

If I get hungry, I'll flip a few more slabs of stone.

Cedar post prices are totally out of control. I am careful now on pushing cedar. Staves are good money too if you got the time. If you take the time.

There is some romanticism to having cattle. They aint much fun when someone runs off the road at 2 a.m. and tears out several fence posts then drives off. Murphy's law kicks in and you are fixing fence and rounding up cattle in the dark on a rainy night. Ends the drought tho!

Are you serious? I'm gonna be rich!

 

[Caustic Burno]

If I could get my hands on it I'd take my 401k and buy land

Don't kid yourself and think the land market can't go belly up. There are people that bought land In the 70's S&L boom and prices havent got back to what they paid.
If the Fed doesn't stop printing money at the record pace this country is going bust wide open.
You think the last depression was bad will make this one look like a walk in the park.
The first one 70% of the population was on the farm.

 

[cross_7]

If I could get my hands on it I'd take my 401k and buy land

Don't kid yourself and think the land market can't go belly up. There are people that bought land In the 70's S&L boom and prices havent got back to what they paid.
If the Fed doesn't stop printing money at the record pace this country is going bust wide open.
You think the last depression was bad will make this one look like a walk in the park.
The first one 70% of the population was on the farm.

IMO
Land is a safer investment than the stock market

 

[Caustic Burno]

If I could get my hands on it I'd take my 401k and buy land

Don't kid yourself and think the land market can't go belly up. There are people that bought land In the 70's S&L boom and prices havent got back to what they paid.
If the Fed doesn't stop printing money at the record pace this country is going bust wide open.
You think the last depression was bad will make this one look like a walk in the park.
The first one 70% of the population was on the farm.

IMO
Land is a safer investment than the stock market

After thought never mind.

 

[shaz]

Personally, I would say buy it. Your not going to get a better deal.
I paid 2500/acre for 25 acres in 2008 and 1600/acre for 173 acres in 2006.

The cows won't pay for it but your taxes will be cheaper and your mortgage interest is deductible.
If you want to own land and cows you may as well do it now. My 2 cents, take it for what it's worth.

 

[snake67]

Caustic

Stop speaking right now. You obviously have never raised a cow in your life. LOL!

If the group thinks the cows can pay for it then they MUST be right.

Here is what I now tell people:

I always say that anyone starting out in cows needs to go slow and put 10,000 bucks in the bank (or pick your number). Then go out and buy cows with it. Leave enough in the bank to cover operating expenses. Put NO outside funding into that account.

At the end of the year sell your calves and put the money in the bank.

Check the balance.

Do this for five years

If a the end of five years there is still cash on hand you are making money. If it is an empty account you are not.

NEVER add outside money to the account.

Pretty plain and simple

No matter how good your management is, there is a heck of a pile of luck involved - pricing, weather, feed, repairs, veterinarian, etc

Two bad years in a row and all your profits and maybe your principal cash is gone. We had it happen to us - we went right to less than 24 hours to bankruptcy - through no fault of our own. So you need substantial back up cash to stay liquid.

And never forget it is cheaper to move cows to feed than to move feed to cows.

Most will have an empty account and some will have a few pennies left over - and if they are lucky, they might even have a few cows left over and still standing in the field.

No matter what you do tncattle I wish you all the best

Have fun my friends

Bez

 

[dieselbeef]

If I could get my hands on it I'd take my 401k and buy land

Don't kid yourself and think the land market can't go belly up. There are people that bought land In the 70's S&L boom and prices havent got back to what they paid.
If the Fed doesn't stop printing money at the record pace this country is going bust wide open.
You think the last depression was bad will make this one look like a walk in the park.
The first one 70% of the population was on the farm.

IMO
Land is a safer investment than the stock market

only if ya plan on selling it..ya cant eat it...

 

[Bigfoot]

We are all forgetting one important thing here. The cattle are included in the deal. I don't know how many cows it is, but me personally I wouldn't want to pay for the cattle over the life of a mortgage. Buy the land if you can swing it, run the purchase price of those cows through a mortgage loan calculator and see what they end up costing you. I think you will be surprised. Also want they be dead and gone when you are still paying on them.

 

[tom4018]

We are all forgetting one important thing here. The cattle are included in the deal. I don't know how many cows it is, but me personally I wouldn't want to pay for the cattle over the life of a mortgage. Buy the land if you can swing it, run the purchase price of those cows through a mortgage loan calculator and see what they end up costing you. I think you will be surprised. Also want they be dead and gone when you are still paying on them.

One thing you could do is pay enough down to cover the value of the cattle and equipment. I am like you Bigfoot and would not want to be paying interest on a cow years down the road after she died or was culled. So far I have never borrowed money on cattle, I have on equipment but could never bring myself to do it on cattle. Figured they could die, guess they could be insured also but what I priced was pretty high.

 

[Kathie in Thorp]

A dear old farmer friend of mine was told me, "Dirt is a good investment. They don't make any more of it."

 

[Caustic Burno]

A dear old farmer friend of mine was told me, "Dirt is a good investment. They don't make any more of it."

As my grandpa used to say don't think you ever own the land, you are just renting from the government.
Don't think you can't loose it because you don't have the money to pay the taxes.
Wait and the government come's in and dig's a long trench and shoot's most of your cattle to boot.
Don't think it can't happen as it already has happened here before. Happened to my grandparent's and great grandparent's. Forget these recession's we have had, let a depression hit and no one has two nickel's to rub together.

 

[denvermartinfarms]

We are all forgetting one important thing here. The cattle are included in the deal. I don't know how many cows it is, but me personally I wouldn't want to pay for the cattle over the life of a mortgage. Buy the land if you can swing it, run the purchase price of those cows through a mortgage loan calculator and see what they end up costing you. I think you will be surprised. Also want they be dead and gone when you are still paying on them.

One thing you could do is pay enough down to cover the value of the cattle and equipment. I am like you Bigfoot and would not want to be paying interest on a cow years down the road after she died or was culled. So far I have never borrowed money on cattle, I have on equipment but could never bring myself to do it on cattle. Figured they could die, guess they could be insured also but what I priced was pretty high.

I've been trying to stay out of this, but I do agree about the cows being included in the land loan not being the way to go. And I can say that I would have nothing if not for borrowing money to buy cattle, but not in this kind of deal.