cattle proposition

[bulldog]

My cousin has been in the cattle business for a while, and he has proposed an offer that sounds interesting. He has offered to to go in halvers on 25 bottle calves over the course of a one year period, and also go in halvers on the milk replacer that it takes to raise them. After they get up to 250lbs or so take them to his place to finish them out to 6 or 7 hundred lbs. After they get to his place he is responsible for feed, fertilizer, lime, cows getting out, everything until we sell. When we sale we then will split the profit. The only reason I am considering this is because I will have to pay rent on a pasture as I only have small lots to raise calves. This seems to me like a pretty good offer, as I will basically be continuing what I am doing now, only he will split the initial calf price and the milk replacer. The calves will be much heavier and therefore bring more profit, but I will have to split the total profit with him. Please let me know your thoughts on this proposition.

Bulldog.

 

[Rookie]

Those deals go sour a GOOD percentage of the time. I be sayin thanks, but no thanks.

 

[msscamp]

I tend to agree with Rookie. Too many things can (and usually do) go wrong with these kinds of deals.

 

[Bez!]

Nope - not for me - and I would suggest not for you.

Bez!

 

[Beef11]

Go for it! Nothing is better when you're getting started than a good pard.

 

[Crowderfarms]

Go for it! Nothing is better when you're getting started than a good pard.

The only good partner to have in the Cattle business is yourself, or your Wife.

 

[la4angus]

Go for it! Nothing is better when you're getting started than a good pard.

The only good partner to have in the Cattle business is yourself, or your Wife.

That's for sure. Definitely not kin folk.

 

[J-CCCC]

Bulldog,

Only you can make this decision! There are two ways to go: handshake or contract. if you think you will need a contract-don't do it. If you think you will not need a contract-don't do it. If you can be happy with a negative outcome..Go for it! you could be surprised!! You ability to read people is the only criteria but you must be willing to accept a negative outcome. Ive had good and bad results, which may say something about my reading skills. But then I'm still reading those Zane Grey and Max Brand thrillers.

Jay

 

[Angus Guy]

Wife had better be good partner or everything fails :oops: :oops:

 

[Beefy]

i have yet to hear anything good that starts out "My cousin..."

 

[la4angus]

i have yet to hear anything good that starts out "My cousin..."

That's for sure.

 

[msscamp]

Go for it! Nothing is better when you're getting started than a good pard.

The only good partner to have in the Cattle business is yourself, or your Wife.

Even that partnership can get dicey, as well!

 

[George]

Go for it! Nothing is better when you're getting started than a good pard.

The only good partner to have in the Cattle business is yourself, or your Wife.

The only partner i would want in the cattle business,and would have full trust in,would be my wife.

 

[Ryder]

It is not for me to say yea or nay, but what are the guesstimated cost for each of you to be out of pocket?

If there is (or when there is) a dispute somewhere down the line, can you just say "oh well" and walk away?

 

[aplusmnt]

Go for it! Nothing is better when you're getting started than a good pard.

The only good partner to have in the Cattle business is yourself, or your Wife.

I think this goes for almost any business! Every family deal I have ever set back and watch happen has gone sour in the end.

 

[Rustler9]

It sounds good but kin folks are usually the first to turn on you. It's hard to say what you should do.

 

[SimmAngus]

Go ahead and buy the 25 calves, take them to 250lbs on your own, and then sell them to your cousin. Solves many issues, and if your cousin changes his mind you have 6250lbs of feeder cattle to sell at the sale barn.

 

[milkmaid]

Go ahead and buy the 25 calves, take them to 250lbs on your own, and then sell them to your cousin. Solves many issues, and if your cousin changes his mind you have 6250lbs of feeder cattle to sell at the sale barn.

Now that sounds much better. :)

But...if you haven't raised bottle calves before, I wouldn't start with 25. Start smaller and gradually work your way up as you gain experience.

 

[Susie David]

Twenty five bottle calves....how many pairs of hands do you have, not to mention the time.
Gotta love family...can't pick 'em, gotta love 'em.
Partnerships are the business venture that most often go under because of differences of opinion and that is mostly over division of labor. Sounds like your cousin is getting the sweet end of the deal and you will wonder why you did all the work and he gets to watch the steers graze.
My partner is my wife and we talk over the operation most every day...hot tub is a great conference room...wouldn't try that with the cousin. ( I know open to regional interpertation)
DMc

 

[mitchwi]

Go ahead and buy the 25 calves, take them to 250lbs on your own, and then sell them to your cousin. Solves many issues, and if your cousin changes his mind you have 6250lbs of feeder cattle to sell at the sale barn.

Best advice.

Never borrow money to/from or go into business with family.