Financing bred heifers? Or bad idea

[Nesikep]

If you can make the payments pencil out at LOW prices, then I think it's a good idea..

Fact is it's a good time to be in debt as long as you can service it.. Around here the increase in value of real estate (urban areas) will more than pay for the interest.

Cows are still assets, they still make a calf yearly (mostly), and any given week you can bring them to the sale barn and get market value for them... Financing equipment, vehicles, etc isn't as good an idea IMHO... They NEVER appreciate in value, and they're harder to sell on short notice for a fair price

 

[hillbillyhammer]

And I may be wrong but this is the way I look at it..... I see people spend $20k on toys (razors, boats, jeeps, jet skis, etc) and $5k on vacations, and whatever else. It's their money. They can spend it as they see fit. I'd rather buy land, cows, houses, equipment or anything else that SHOULD either appreciate or generate income or both. Doesn't make me right but that's how I look at it. I'd rather have a years lease and 14 bred heifers than new toys. Just a thought.

Yep, I feel the same way

 

[dun]

Don;t know if it's been mentioned but you will need to look into insurance for these girls. Since the bank will own them I would imagine they will require it anyway

 

[talltimber]

I prefer not to loan money on breeding stock, since their salvage value is worth less than half the purchase price.

While I have not seen pics of them, could we assume that they'll weigh at least 725 and bring a dollar a pound?

 

[Son of Butch]

It blows my mind how people spend more money on toys than I spend on a truck.
I can't even bring myself to buy a used four wheeler.

The cows might or might not buy you a four wheeler, but I know a four wheeler won't buy you any cows.
No, financing cattle is not always a bad idea. You seem to have your eyes wide open and know what you're getting
into. I'd give it a go and the Best of Luck to ya.

 

[NolanCountyAG]

Don;t know if it's been mentioned but you will need to look into insurance for these girls. Since the bank will own them I would imagine they will require it anyway

May be a regional thing but never heard of a bank requiring insurance on financed cattle.

 

[talltimber]

My banker asked if insurance was available, wasn't requiring it (he may have if I didn't have any or didn't have equity in cattle already here), on cattle when we were talking and I had mentioned that I thought I'd be ok if they didn't die. I had a policy, for what it's worth, on mine already. Basically, fall off in a gulley, tree fall on them, fire, lightning, drowning in flood, fall through the ice (used to not be covered, now it is). No disease type deaths covered that I am aware. Not sure about death during calving, I doubt it.

 

[jedstivers]

Put steers or trader cows on it. 14 heifers is 85 dollars a piece in rent.
And yes financing something to make a living with is fine if you have some of your own to put with it.
Financing toys is not ok.

 

[JSCATTLE]

I started off with leased land and financed cows .. in 2007 .. I had 140 head free and clear in 2012 when the drought hit.. still have 50 head paid for .. just let the cows pay the note .. that's what I did.. but I would go to the sale barn and buy some bred short and solids or older pairs .. something you can get 3 or 4 calves out of.. by the time you are ready to sell the market will be on the up swing and you will make out ok ..

 

[Kenany Farm]

be honest with yourself, figure out how long would it take you ideally to pay off the loan, and make your lease period for that length of time if not longer, that way if the landowner decided he needed his land you won`t get screwed while you have a good thing going. Also add a clause in the lease agreement that if the owner wants you out by the end of the lease, he should inform you 3 months before the your time`s up so you can find another place to put your cattle, or otherwise the lease is re-instated. Hopefully somehow by that time you will buy more land and move your cattle on it.

 

[Cross-7]

Put steers or trader cows on it. 14 heifers is 85 dollars a piece in rent.
And yes financing something to make a living with is fine if you have some of your own to put with it.
Financing toys is not ok.

X2
Again I don't know your climate but middle aged 2nd trimester cows in sept should of be cheap in comparison

 

[Ky cowboy]

I missed out on the heifers. But was already leaning towards some older cows open or bred. Prolly gonna make this group fall calving so old bully can have something to do most of the year

 

[Ojp6]

If I was you I'd buy a set of September calving cows sometime between now and the 1st of August, you could probably even buy them right now pretty reasonable as they aren't yet getting that $100 premium that 7-8 month cows usually get. Run your numbers and figure out what you can give for them before you start looking. If you buy old cows, buy them at a price where you can sell everything when you wean the calves and still clear a good profit so that if the market takes another dive you can still try to break even. Older cows bred 5-6 months should be just a little over kill price, 5-8 year olds will cost a couple hundred more. I don't know what part of the state you are in, but if you are west of I-65 if you pm me I can try to help you find a set of cows, whether it be through a sale barn or in the country.