cost of raising heifer to be bred vs buying bred cow

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prices of steers and heifers are still strong:
a. steers or bulls 300-500: 105-129; 500-650: 95-116; 700-850: 85-100
b. heifer 300-500: 95-119; 500-650: 88-114; 700-850: 78-90

c. bred cows are 950-1300 (from average to great bcs)
hard to make profit when your intial cost is too high to make a profit. in our area, there are expecting hay to be higher in 2011. they are shifting good alfalfa overseas, compressing them like cement blocks. they are a lot poor alfalfa for beef cattle this year. with increased of ethanol from 10-15%, i hope that it would not affect the feed for next year. in my area, they are raising wheat,soy, and
corn for next future crop. uscangus-newbie....
 
sold most of my calves and bred cows last two weeks but ended leaving four weaned calves ranges wt from 400-800lbs.
able to sell at 110-120 per wt. and probably planning to sell the rest of the four in mid-jan or early february. the proceeds will be use for acquisition for 26 acreages with river behind the property and state highway (commercial property or zone, optional for
agriculture).

the seller has about 1500 acreages in eastern oregon. she and I agreed with land that i will pay 10% down and
with 4% interest of 30 years notes but a balloon payments in 7-10. she control the title but I have access to use the properties.
i will use the land to build a medical and dental practice's building(two units) and let the practice pay the payments. hopefully, the economy will turn around and the payments will tax deductions. Here, western washington, you could build a house for $38 per sq
feet. with 3000-3600 sq. ft, it will cost around $150k and split it into two 1500 sq. ft. rent the other half building to a medical
office and help pay the payment for the construction's cost. the company is called Hiline homes and you could see in internet.

purchased the bred cow about 650 black. the bred cows were sold around over 900 and weight around 1450-1500lbs or over.
i sold them because the price were right and the cost of the land were supressed. the price of the land will be around 80-100K
this is the best time to buy land for that price. hopefully, around five years from now, the land will double. paul allen bought
140 acreage to develope industrial park which is about three exit from land. the owner is far away and elderly around mid 70's.
she agreed to the purchase before paul allen's acquisition.

one day, when the cost of feeder calf (about 65-70 cents per pounds or bred cow is about 40 cents per pounds), then, i will
build and start all over again. the price of land was too tempting compare to the price of calf or bred cow. eventually, the price of
calf or bred cow will drop down. land is limited in number when it is 1/4 mile away from the interstate freeway, on state highway,
and the river (behind the property). the location is perfect. i have already a six acreages, same street and location, but much closer
to the freeway about 3000 ft from the freeway.
 
uscangus":zoueiz7x said:
sold most of my calves and bred cows last two weeks but ended leaving four weaned calves ranges wt from 400-800lbs.
able to sell at 110-120 per wt. and probably planning to sell the rest of the four in mid-jan or early february. the proceeds will be use for acquisition for 26 acreages with river behind the property and state highway (commercial property or zone, optional for
agriculture).

the seller has about 1500 acreages in eastern oregon. she and I agreed with land that i will pay 10% down and
with 4% interest of 30 years notes but a balloon payments in 7-10. she control the title but I have access to use the properties.
i will use the land to build a medical and dental practice's building(two units) and let the practice pay the payments. hopefully, the economy will turn around and the payments will tax deductions. Here, western washington, you could build a house for $38 per sq
feet. with 3000-3600 sq. ft, it will cost around $150k and split it into two 1500 sq. ft. rent the other half building to a medical
office and help pay the payment for the construction's cost. the company is called Hiline homes and you could see in internet.

purchased the bred cow about 650 black. the bred cows were sold around over 900 and weight around 1450-1500lbs or over.
i sold them because the price were right and the cost of the land were supressed. the price of the land will be around 80-100K
this is the best time to buy land for that price. hopefully, around five years from now, the land will double. paul allen bought
140 acreage to develope industrial park which is about three exit from land. the owner is far away and elderly around mid 70's.
she agreed to the purchase before paul allen's acquisition.

one day, when the cost of feeder calf (about 65-70 cents per pounds or bred cow is about 40 cents per pounds), then, i will
build and start all over again. the price of land was too tempting compare to the price of calf or bred cow. eventually, the price of
calf or bred cow will drop down. land is limited in number when it is 1/4 mile away from the interstate freeway, on state highway,
and the river (behind the property). the location is perfect. i have already a six acreages, same street and location, but much closer
to the freeway about 3000 ft from the freeway.
don't know how Washington law is but the owner should give you the deed and then she holds the the warranty deed so if you default on the note she can get it back or if she dies or gets sued no one can take the land you are paying for
I would contact a good real estate lawyer and spend the $1000 dollars or so and have him write it all up legally
good luck
 
Angus Cowman":gi5bwibs said:
uscangus":gi5bwibs said:
sold most of my calves and bred cows last two weeks but ended leaving four weaned calves ranges wt from 400-800lbs.
able to sell at 110-120 per wt. and probably planning to sell the rest of the four in mid-jan or early february. the proceeds will be use for acquisition for 26 acreages with river behind the property and state highway (commercial property or zone, optional for
agriculture).

the seller has about 1500 acreages in eastern oregon. she and I agreed with land that i will pay 10% down and
with 4% interest of 30 years notes but a balloon payments in 7-10. she control the title but I have access to use the properties.
i will use the land to build a medical and dental practice's building(two units) and let the practice pay the payments. hopefully, the economy will turn around and the payments will tax deductions. Here, western washington, you could build a house for $38 per sq
feet. with 3000-3600 sq. ft, it will cost around $150k and split it into two 1500 sq. ft. rent the other half building to a medical
office and help pay the payment for the construction's cost. the company is called Hiline homes and you could see in internet.

purchased the bred cow about 650 black. the bred cows were sold around over 900 and weight around 1450-1500lbs or over.
i sold them because the price were right and the cost of the land were supressed. the price of the land will be around 80-100K
this is the best time to buy land for that price. hopefully, around five years from now, the land will double. paul allen bought
140 acreage to develope industrial park which is about three exit from land. the owner is far away and elderly around mid 70's.
she agreed to the purchase before paul allen's acquisition.

one day, when the cost of feeder calf (about 65-70 cents per pounds or bred cow is about 40 cents per pounds), then, i will
build and start all over again. the price of land was too tempting compare to the price of calf or bred cow. eventually, the price of
calf or bred cow will drop down. land is limited in number when it is 1/4 mile away from the interstate freeway, on state highway,
and the river (behind the property). the location is perfect. i have already a six acreages, same street and location, but much closer
to the freeway about 3000 ft from the freeway.
don't know how Washington law is but the owner should give you the deed and then she holds the the warranty deed so if you default on the note she can get it back or if she dies or gets sued no one can take the land you are paying for
I would contact a good real estate lawyer and spend the $1000 dollars or so and have him write it all up legally
good luck

thank you angus cowman, i am going to escrow and pay my payments thru them. make it legitimate and legally.
 
with the future prices of young heifers (almost twice the price of last year), bred cows (almost more than
50% of last year prices), feed or corn prices in the future are escalating (not including labor and infrastrucutre of maintaining), the profit is harder after the expenses. i understand the government is pushing to increase the percentage from 10 to 15% of ethanol, causing the future prices of corn. i just don't see the major and uptick demands for beef. sure, there is movements in china, korea, and russia but our consumer demands are still slow like a snail. without the consumers demand in the us economy,which make 2/3 the us economy, i am puzzles for the future prices of beef livestock. i understand the future commodities prices but consumer food demands that i am perturbed for these prices to have validity, strength, and stickiness of its mobility.

i am willing to take your advices, being a newbies,uscangus and go lakers.......
 
"one day, when the cost of feeder calf (about 65-70 cents per pounds or bred cow is about 40 cents per pounds), then, i will build and start all over again." (USC)

I would not hold my breath waiting for those prices. jmho.

Good luck in your real estate endeavor. I would be more concerned about the future value of commercial real estate than cattle.

Jim
 
uscangus":3w1f5pef said:
with the future prices of young heifers (almost twice the price of last year), bred cows (almost more than 50% of last year prices), feed or corn prices in the future are escalating (not including labor and infrastructure of maintaining), the profit is harder after the expenses.

I am part way through my semi annual number crunching and cattle gross margins are way up.
I have not run the cropping numbers yet, but I think corn grain will beat cows in 2011 IF you have both options.
An potential advantage in this situation is providing high value of gain with growing animals on land that should not be farmed.
 
Stocker Steve":253pyjil said:
uscangus":253pyjil said:
with the future prices of young heifers (almost twice the price of last year), bred cows (almost more than 50% of last year prices), feed or corn prices in the future are escalating (not including labor and infrastructure of maintaining), the profit is harder after the expenses.

I am part way through my semi annual number crunching and cattle gross margins are way up.
I have not run the cropping numbers yet, but I think corn grain will beat cows in 2011 IF you have both options.
An potential advantage in this situation is providing high value of gain with growing animals on land that should not be farmed.

thanks stocker steve for your response. i agreed that if you have large and very lard herds where your land is paid for and have sufficient pasture and alfalfa in your pasture or land. and, your machinery are paid for and labor is cheap. then, you have a great
deal since you have an enormous amount of growing animals or crops that will pay for itself and recycle the bred cows.

i am cautious about the future price of feeds or corns and demand strenght of beef for consumers. thanks., usc
 
uscangus":2gpf8s1m said:
i am cautious about the future price of feeds or corns and demand strenght of beef for consumers. thanks., usc
This calls to mind, "Just because you're paranoid doesn;t mean someone might not be out to get you"
 
dun":2l6hxbe8 said:
uscangus":2l6hxbe8 said:
i am cautious about the future price of feeds or corns and demand strenght of beef for consumers. thanks., usc
This calls to mind, "Just because you're paranoid doesn;t mean someone might not be out to get you"

thanks dun, it is not paranoid. it is like taking the creme from the top. when you feel that you have better option to make a profit in other avenues where the start costs or sunken costs are much cheaper. right now, land or real estate(not residential) for future usage for a business is much cheaper and greater potential to make a profit. like, many times in this cattle forum or discussion boards, we are here for
for charity but a business.

eventually, farm land will appreciate due to increase commodities, livestocks, or from ethanol or cotton
prices. large investors will once again be sucker into purchasing more farm land. besides, equity market, where can they park their money to invest? the cost is so low for land that the appreciation is also greater. there is certain ceiling or cap for livestock's growth in any business, such as limited land and capital.
 

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