Diversify operation / Order Buyer

[JMJ Farms]

I'm looking for a way to diversify from just a cow/calf operation. My end goal is to raise top quality replacement heifers from my herd. To add to that goal, I either want to 1) Buy good uniform heifers around 600-700 pounds and breed them by AI with good clean up bulls and sell them as heavy bred heifers or 2) Order buy cows/calves or 3) Both.

Question 1) Which would be more profitable?
Question 2) How do you get started in the order buyer business? I've bought cows for friends and neighbors but I have absolutely no idea how you would get an order from someone who doesn't know you and has no reason to trust your competence, or who you would contact to get an order, that doesn't already have an order buyer buying for them.

Any response wild be greatly appreciated

 

[Aaron]

#1) Buy yearling heifers in singles and doubles and make bigger groups. Forget AI, breed to best easy-calving yearling bull you can buy and in the fall, ship everything. Opens as opens, breds as breds, and the bull as well.

#2)Forget order buying. You will be stepping on toes of experienced buyers and they love to teach newbies a lesson, ringside, financially. I've seen them get together and run things up intentionally just to dump on the new guy.

 

[Bigfoot]

It would be really hard, to the point of almost impossible to just get in to order buying. The person on both ends already has their bases covered.

 

[jltrent]

I would stick with the cow/calf operation.

 

[Rafter S]

With all due respect, how do either of those options get you closer to your goal of raising top quality replacement heifers from your herd?

 

[JMJ Farms]

Thanks Aaron. That was kinda my thoughts. Buy singles and doubles and group them uniformly. I think that I should break even at the worst.

As far as the order buying I agree with both you and Bigfoot. Has been my observation and thoughts as well. The only thing that keeps it in my head is that I know 90% of the ones in my area personally. And most of them are getting older. Someone, somewhere is gonna have to fill their shoes sooner than later. I kinda think that my only way in would be if they were willing to "let" me in. Most all of them have helped me at some point. But actually getting them to let me into the circle could be pretty tough.

Rafter, it doesn't help me in that aspect. I have already set up my operation to raise the type of replacement heifers that I want to market. It only allows me to diversify and add another "business" dealing with cattle. I'm a residential/small commercial builder by trade. It pays the bills and I enjoy doing it. I also have some rental property. My thinking is that since I'm self employed, my "retirement", if I live that long, is gonna be whatever I can save and acquire between now and then. I really like fooling with cattle. But I've never been comfortable in thinking that I could make it in the cattle business alone. But I have the setup that would allow for expansion. I have most of the equipment required to expand, so that cost is already met. Just don't want all my eggs in the same basket, you know. Order buying would only give me an excuse to go to the cow sale every day, lol. However , I don't see it ever happening. I know the cattle business probably ain't the way to get rich. Been at it long enough to know that. But that's what I like, and I'd rather be happy and just getting by, than be sitting at a desk miserable and being rich. I think I'm just gonna buy some good quality heifers and breed them and see how it works. Maybe try 20 or so.

Thanks for the advice. I think it's spot on.

 

[js1234]

in addition to our cattle operations we order buy a fair amount of cattle for a small customer base of large operators whom we partner with etc. while not an order buyer in the sense that i think you want to be, we have helped a couple young guys get started and i know a little bit about it. if you'd like some information about specifics, id be glad to tell you whatever i can to help.

 

[Cross-7]

Many years ago I was just a kid
I was trying to buy some calves
I called a order buyer but he just played me off as a dumb kid.
So I went to a few sales trying to buy calves buying here and there, steers and heifers both.
I didn't know what I was doing
I was bidding and a guy ( order buyer I assumed) was buying light calves too and we were bidding back and forth.
He looked at me and pointed at me and he quit bidding
A little later I was bidding and he cleared his throat and I looked over and he pointed to himself.
Right then the light came on
Might get in touch and make friends with the folks buying cattle

 

[JMJ Farms]

in addition to our cattle operations we order buy a fair amount of cattle for a small customer base of large operators whom we partner with etc. while not an order buyer in the sense that i think you want to be, we have helped a couple young guys get started and i know a little bit about it. if you'd like some information about specifics, id be glad to tell you whatever i can to help.

Thanks js, I occasionally have a friend or neighbor call me and ask if I will buy them some pairs or bred cows. Never bought any calves except for myself. I'm not an expert by any stretch of the imagination but I do have a good eye and would like to buy stocker calves and feedlot calves. But I have no idea how I would procure a new customer if I was honest and said "I have no order buying experience". So any information you are willing to share would be greatly appreciated. I've toyed with the idea of buying a pot load with my own money and then trying to sell them to a feedlot or feeding them on contract. But I don't have a relationship with anyone out west and I've heard horror stories of people getting cheated bad. Not to mention it ties up a lot of money I can't afford to lose. So that idea is probably out.

Cross, you are 100% right. That's the way it works. This "friends among friends" doesn't help the cow/calf man though. But it's still how it works. Even among the order buyers themselves. I am friends with 90% of the order buyers in my area. I know them very well. But when it comes to buying cows, they don't cut me much slack. If I want to buy some bred cows and I don't tell them before the sale they will run me. Sometimes even if I tell them they still do. Depends on how bad they want them. I guess that's why it's called supply and demand. I guess I need to talk to them and then just get in there and show them I'm willing to play a little give and take with them and let time take care of the rest? I have to find some customers to sell to first.

 

[ram]

JMJ Farms, have you ever dealt with Southeastern Livestock Exchange? Mr. Hooks is a wrath of knowledge and knows the cattle business. He would be a good start for you. IMO

 

[JMJ Farms]

JMJ Farms, have you ever dealt with Southeastern Livestock Exchange? Mr. Hooks is a wrath of knowledge and knows the cattle business. He would be a good start for you. IMO

I have not RAM. Not familiar with him. But if you think that would be beneficial, I will certainly try to get in touch with him. Do you know him?

 

[ram]

Google Southeastern Livestock Exchange and get a hold of him. He has a lot of different options when it comes to selling and marketing cattle.
You also need to pm, Denver Martin Farms. He's going to be a heavy hitter in the cattle business in the very near future. IMO

 

[JMJ Farms]

I went on their website and got his number. I will also pm Denver. Thanks ram.

 

[denvermartinfarms]

Google Southeastern Livestock Exchange and get a hold of him. He has a lot of different options when it comes to selling and marketing cattle.
You also need to pm, Denver Martin Farms. He's going to be a heavy hitter in the cattle business in the very near future. IMO

That's funny, I already pm'd JMJ.

 

[Ojp6]

What sale barns in Georgia do you go to? I know a few guys from Tennessee that buy a pile of cattle out of some barns over there. The only time I've ever gotten cattle out of Georgia that I know of they originally came out of Northeast Geogia Livestock but I bought them when they came through a sale in TN the next week.

 

[JMJ Farms]

What sale barns in Georgia do you go to? I know a few guys from Tennessee that buy a pile of cattle out of some barns over there. The only time I've ever gotten cattle out of Georgia that I know of they originally came out of Northeast Geogia Livestock but I bought them when they came through a sale in TN the next week.

I go to Pulaski County stockyard (Hawkinsville) and Turner County (ashburn) regularly. Potters that are close are Fitzgerald, oak park, Moultrie, cordele, and swainsboro.