I am 34 years old and getting set up from scratch in cattle is almost impossible for my generation. I bought my first piece of land in 1999. Cut hay off the place for a few years before getting cows. By the time I make the land payments, cattle payments, equipment payments (hay equipment is a necessity here) and cover all other expenses there is nothing left over. Usually have to reach into my pocket to cover it all. I am about to get most of my equipment paid off and that will help a lot. I try to run the farm like a business. I have to be as efficient as possible. However, I consider it more of an investment than a source of income. Just as earnings in a retirement account are reinvested, I plan to reinvest any earnings into more land and cattle through the years. Hopefully in a couple of decades I can start to take some money out. A young person must absolutely love this lifestyle if they try to give it a go from scratch. Otherwise, there is no incentive and the setbacks they will face will overwhelm and discourage them. For example, lost five calves last year out of first calf heifers (low birth weight is an abused term). A few blows like that will cause you to re-evaluate why you do this. This board has been extremely valuable to me along with the help of my dad who has been around cattle since the 1950s. I read the studies from the research centers but they operate in a sterilized environment based on numbers that is separate from the real world sometimes. I have found the cattle business to be qualitative as well a quantitative. The numbers don't always tell the whole story and every farm is different (environmentally, financially, time invested, etc.).
I know that many on here warn against borrowing money and that certainly is wise advise. However, the capital required would take a lifetime of saving if not longer. Too small can be as bad as too big because the fixed costs can eat you up. The equipment dealership doesn't care if you only have ten cows, the tractor and hay equipment are the same price regardless. I would not even consider using a banker that does not understand farming. Also, land is so hard to get that if you want it you better jump on it when it becomes available. Most sales around here never go public and if they do you can be sure the guys that have time to set at the coffee shops will know about it first. One more thing, there is no way I could do this if my wife didn't give me her full support and confidence.