Cow/Calf Operation

[Daveov13]

Hello all, I'll be 60 in 9 months and looking to retire from corporate life. I have 53 acres, 2 tractors, bailer, Bobcat, Excavator, Bulldozer, and lots of equipment. I just fenced 12 acres and horse barn goes in this week. I have clear cut 35 acres to become pasture. I'm looking to start a co/calf operation. Question, can I do this on 53 acres and make reasonable income? How many should I start with? I have a couple million to invest in this operation, but want to make sure this is sustainable with the investment.

Thanks in advance for your advice.

 

[Nesikep]

You're certainly starting with the right depth of pocketbook. I don't know where you live and what kind of land you have, how productive it is, but we have about 50 acres of pretty good land, and I'm holding 25 cows, a bull, replacement heifers, and the occasional steer, and have some hay to sell.
No one knows what cattle prices are really going to do, we all have suspicions one way or another, but the long and the short of it is cows are expensive now, if there's another BSE style crisis it could cost you a lot, on the other hand the US beef herd is at record lows as well, so prices could get higher yet. If prices hang around what they are, I'd say on the 35 acres you should hold about 12-15 cows unless it's drought land.. Take into account the costs of some fencing, etc.. People seem to be getting $1200-1600 per calf at weaning.. It's a pretty modest living that you're going to have to enjoy doing for it to be worthwhile at all for you. If you're going to have all 53 acres and it's better land yo might hold 30 cows, which a bit above poverty line at least!
I'd say start with 10 cows, cheap ones!.. it's better to make you mistakes on old rags (and the old hags have done it a few times and know what they're supposed to do), Then you can always give your herd a facelift and perhaps go purebred if that floats your boat, as well as increase the numbers.. At some point you'll find the balance.

Welcome to CT

 

[Putangitangi]

I'm sure you can farm a couple of million away in no time!

 

[Caustic Burno]

Hello all, I'll be 60 in 9 months and looking to retire from corporate life. I have 53 acres, 2 tractors, bailer, Bobcat, Excavator, Bulldozer, and lots of equipment. I just fenced 12 acres and horse barn goes in this week. I have clear cut 35 acres to become pasture. I'm looking to start a co/calf operation. Question, can I do this on 53 acres and make reasonable income? How many should I start with? I have a couple million to invest in this operation, but want to make sure this is sustainable with the investment.

Thanks in advance for your advice.

If you want to make a little in the cow business start out with a lot.
Figuring you are starting out green you will be lucky to turn a profit in ten years, if you are honest with yourself
and the real expenses..

 

[Jabes0623]

A couple of million?

If it's money you're looking to make call Edward Jones & give them that couple of million. You'll make way more doing way less.

 

[AllForage]

I have a hard time believing this post. Corporate guy with a couple million? 35 acres? profit? asking total strangers for business advice???

just don't add up for me.

And if this is a serious question, NO, not with 35 acres.

 

[TN Cattle Man]

I have a hard time believing this post. Corporate guy with a couple million? 35 acres? profit? asking total strangers for business advice???

just don't add up for me.

And if this is a serious question, NO, not with 35 acres.

Exactly what I was thinking! The OP asks if he can make a "Reasonable Income"... to me, a "Reasonable" income could be made by investing the two million in low-risk money market accounts or mutual funds and living off of the interest. If you can't find a steady rate of return of at least 10% on your investment, you probably don't need to be managing a couple million dollars! You will NEVER see that sort of return on that small of a cow/calf operation.

my :2cents:

 

[Sunfish]

I'd be interested in a low risk investment paying 10% ?????

 

[M5farm]

he may have a bunch of millions and needs a way to lose a couple million. So he comes here and asks the poor folks for help in not making any money.

 

[AllForage]

This is not directed at the OP necessarily


The sad thing is I hear these kinds of situations all the time. Guys with millions and a bit of cattle ADD buy this and that then change their mind or divorce. Problem is these types often buy some very rare and good cattle to then waste them or haul off to the sales barn. This kind of guy would be better off finding a good working operation of any size that has a plan and investing to expand it. I personally have demand that I could not imagine being able to fulfill. I have also developed a protocol that can be expanded and scaled. Just an example, I ain't pimpin myself Guy could enjoy the better parts of running cows while using his business skills to sure up the cow guy. These can be win win situations.

 

[TN Cattle Man]

I'd be interested in a low risk investment paying 10% ?????

If you are asking this question, I take it you don't have a couple of million dollars to invest...
10% is NOTHING with that kind of investment!

 

[Sunfish]

I'd be interested in a low risk investment paying 10% ?????

If you are asking this question, I take it you don't have a couple of million dollars to invest...
10% is NOTHING with that kind of investment!

Yeah I was asking and no I don't have 2 million to invest
I was interested in hearing what low risk investment paid 10-% thats all

 

[Sunfish]

I'd still like to hear more about the low risk investment paying 10%

 

[highgrit]

Me too, it's the low risk that I'm interested in.

 

[LimoX]

This happens every once in a while when prices of cattle get high and everybody and their brother thinks its an easy way to make money. Around here we call them fly-by-niter cow companies. My advice is to find you a good investment guy (since you are a corporate man you should know someone) and put your money elsewhere. If, you wan to enjoy working on the farm (53 acres) buy you a few cows and enjoy the process and make your reasonable profit somewhere else. Otherwise, your going to invest 2 million in the cattle business with 53 acres, which is not enough to make a reasonable profit, lose your butt and guys like me and the rest of us will come in a buy all your liquid assets and profit off of you! Happens around here all the time! Not, trying to deter you in any way, it is your money, enjoy it, but don't expect a lot of money in return. With what you have describe in my opinion.

 

[TexasBred]

I have a hard time believing this post. Corporate guy with a couple million? 35 acres? profit? asking total strangers for business advice???

just don't add up for me.

And if this is a serious question, NO, not with 35 acres.

You stole my answer....... "NO". ;-)

 

[Jessica06]

Hello all, I'll be 60 in 9 months and looking to retire from corporate life. I have 53 acres, 2 tractors, bailer, Bobcat, Excavator, Bulldozer, and lots of equipment. I just fenced 12 acres and horse barn goes in this week. I have clear cut 35 acres to become pasture. I'm looking to start a co/calf operation. Question, can I do this on 53 acres and make reasonable income? How many should I start with? I have a couple million to invest in this operation, but want to make sure this is sustainable with the investment.

Thanks in advance for your advice.

Making a profit in cattle depends on SO many different factors. With the prices that calves are bringing these days, I would say that just about anyone should be about to end up in the black if they have the right kind of cows, and make SMART management decisions. That is not taking Mother Nature, or big investments into account, just yearly normal operating costs. Speaking from a modest amount of experience, as we just started up ourselves about 6 years ago, I would suggest only investing in what is ABSOLUTELY necessary, to start with. Even if that means doing without some luxuries for a while. Experience will tell you what is, and what isn't, important, and how to best spend your money.

Be frugal, not cheap, and don't do something just because that's what so-and-so does. Do your own research. And start out with fewer, not more, cows than you think you need. You can always add more later!

 

[Newberry Creek]

Get a few cows that you think look good (pretty). Get you some boots and a belt with a big buckle and a cowboy hat and go visit with your friends and "talk" about your cow heard! You will be much happier on that plan.

 

[Sunfish]

Why all the rude and negative comments

I'll tell you if you have the resources and work ethic there is money to be made
Based on what you've accomplished up to this point I'd say to can do well

Losers whine and make excuses
Winners get shyt done then go out with the prom queen

 

[adairtexas]

Well if he has a couple million, depending on where he is he can purchase at least a nice 300 acre place with good fences and plenty of grass and water. Stock it with 4 good herd bulls and 100 tiger stripe 4-5 year old cows and make 75-100k a year. Property will increase in value. As long as cow prices stay high he stands to bring in 150k in calves. he will still have his cows(200k) and he isn't paying the bank any interest. If he lives in Texas or somewhere down south the winters are never very hard and won't need to feed alot of hay either. I would use his 53 acres and just keep a few horses or replacement heifers and cut hay off that place. Would be completely setup for 800k and paid back in 7-10 years! Not sure cattle prices will ever go back to previous prices. Might go down a bit but 1.00/lb beef is gone forever.