getting started grassers

[ranch1907]

I was wondering if anyone might have input on our situation.

I have land paid for (few hundred acres) exceptional bermuda fescue clover.
I have capital of $40,000 possibly $50,000

I really want to place the ranch back into production after many years of standing empty. I am considering stocker/grasser steers but will consider other options.

Due to the need to work outside of the ranch to make a living I need something that does not require a huge amount of time. (Such as cow/calf)

Any help or suggestions appreciated

ranch1907

 

[frenchie]

I was wondering if anyone might have input on our situation.

I have land paid for (few hundred acres) exceptional bermuda fescue clover.
I have capital of $40,000 possibly $50,000

I really want to place the ranch back into production after many years of standing empty. I am considering stocker/grasser steers but will consider other options.

Due to the need to work outside of the ranch to make a living I need something that does not require a huge amount of time. (Such as cow/calf)

Any help or suggestions appreciated

ranch1907

Getting things back in order, will no doubt take some time...there can be some good money to be made on stocker calves...especially if you are willing to buy calves with horns and nuts.. and clean that up.

I would recommend you have an reputable order buyer, buy your first set or two of calves.Have at least 2 marketing plans in mind before you embark on this venture.A Primary plan and a backup plan.

good luck

 

[ranch1907]

thanks for the input I have my dad whom has 30yrs in the cattle business and a family friend that has been on a ranch all of her life to help. However I have to fly on my own when it comes to what to do and they are really there just to keep me from loosing my butt.

ranch1907

 

[Medic24]

My idea is to send me the money, and I will buy cattle with it, and tell you if I make any profit. :lol: Good luck in what ever you chose to do! :cboy:

 

[J Baxter]

I wouldn't hurry too much. Cattle are awful high right now and most everyone's gut is telling them that it is going to break soon.

JB

 

[ranch1907]

Other people that I talk with locally also think that they are going to break esp with border issues. I am not in any hurry to get started I still have about three miles of fence to get in this spring. So I will be looking at later this fall to get started. What weights should I look at? If I buy 5wt steers and sell at 75-8wt just run them on grass and clean them up. On paper It looks good but

I am setting here watching 5 wt angus steers on superior selling for 1.22 and 137.50 the last owner cert natural.

What about that we have had no pesticide no chem spray on the place would it be better to cert natural no implants ect.

thanks

ranch1907

 

[ranch1907]

My idea is to send me the money, and I will buy cattle with it, and tell you if I make any profit. :lol: Good luck in what ever you chose to do! :cboy:

Hey now there is a idea It would be alot less work for me :lol: thanks

 

[Tod Dague]

I wouldn't hurry too much. Cattle are awful high right now and most everyone's gut is telling them that it is going to break soon.

JB

I don't have much experience with stockers personally so do with it as you will.

Stockers tend to do better on a down cycle as long as you don't get out of the business at the bottom and buy replacements on the same market you sold on. There is more price spread from the heavies to the light on a down cycle leading to more cash flow. It doesn't look like you made much to the tax man but you have more in your pocket after buying you replacement calves. During the up cycle the price spread is tighter. You make out well at selling time and the tax man loves you but when you replace the calves you sold you don't have much left over.

If you want to go cow calf I'd wait a while till prices hit bottom. High dollar cows have a hard time paying for themselves once the market starts on the down side of things. ;-)

 

[Dave]

One way to start is to custom graze some elses cattle. Do it on the rate of gain. Your profit will probably not be has high but your risk is certainly lower.
Dave

 

[frenchie]

One way to start is to custom graze some elses cattle. Do it on the rate of gain. Your profit will probably not be has high but your risk is certainly lower.
Dave

That is a good idea to get some cash flow moving.

 

[ranch1907]

I wouldn't hurry too much. Cattle are awful high right now and most everyone's gut is telling them that it is going to break soon.

JB

I don't have much experience with stockers personally so do with it as you will.

Stockers tend to do better on a down cycle as long as you don't get out of the business at the bottom and buy replacements on the same market you sold on. There is more price spread from the heavies to the light on a down cycle leading to more cash flow. It doesn't look like you made much to the tax man but you have more in your pocket after buying you replacement calves. During the up cycle the price spread is tighter. You make out well at selling time and the tax man loves you but when you replace the calves you sold you don't have much left over.

If you want to go cow calf I'd wait a while till prices hit bottom. High dollar cows have a hard time paying for themselves once the market starts on the down side of things. ;-)

I am glad that I found this board It is great to bounce ideas off of each other. What about lighter steers and selling 5 to 6 wt ?

What about just buying small feeder heffers feeding them out and running them through local sales?

There is a local guy that is just picking up the harder looking pairs cleaning them up and feeding out the calf. Says he is doing good with it (whatever good is) but he keeps doing it so unless its for fun he must be.

Thanks for all the help

Ranch 1907

 

[ranch1907]

One way to start is to custom graze some elses cattle. Do it on the rate of gain. Your profit will probably not be has high but your risk is certainly lower.
Dave

That is a good idea to get some cash flow moving.

That could work but unless I am setting myself up to loose money which can and might happen if I just break even and can finally itemize my taxes and write off improvments to the place I will be ahead. But staying in the black is the goal here not just tax write off.

thanks

ranch1907

 

[ollie]

Life is full of risk. If you don't take some there is no reward. If you take a little there is a little reward etc. Cows are high now but they look to hold this price or increase a little over the next two or three years. The more high price calves you sell off a high price cow the cheaper she becomes . I say buy now , buy quality and ride it out in the long run.....better or worse. Expensive cows work better on taxes anyway.

 

[tapeworm]

One way to start is to custom graze some elses cattle. Do it on the rate of gain. Your profit will probably not be has high but your risk is certainly lower.
Dave

Running somebody elses cattle on the gain is a good idea if youve got a low budget or dont want all the rsik. Just dont be expecting a big demand for your services....with $600 calves anybody turning out gain cattle wants somebody with a good bit of experience under there belt tendng to em

 

[SF]

I don't find cow/calf any more work than running steers/heifers. My cows are pretty low maintenance. Work them a couple of times per year. Make sure they have water and just let them eat the grass and grow.

I don't AI at the present time, have considered it, thought I was going to this year, but changed my mind. I just buy a good quality bull and turn him in with the cows.

I agree with Ollie on the price of cows. Buy "good" quality cows or heifers. Cheaper is not better. Good quality cows will make you money in the long run. Poor quality cows will not, and they will add to your work load.

Good luck with whatever you choose to do.

 

[ManyHorses]

Todd Dague wrote:

Stockers tend to do better on a down cycle as long as you don't get out of the business at the bottom and buy replacements on the same market you sold on. There is more price spread from the heavies to the light on a down cycle leading to more cash flow. It doesn't look like you made much to the tax man but you have more in your pocket after buying you replacement calves. During the up cycle the price spread is tighter. You make out well at selling time and the tax man loves you but when you replace the calves you sold you don't have much left over.

If you want to go cow calf I'd wait a while till prices hit bottom. High dollar cows have a hard time paying for themselves once the market starts on the down side of things.

Now here's a well written answer - Two things I really like about it is that it:
1) takes into account the possibly overpriced market conditions right now. That way you're not risking buying into a higher market, raising 'em, maybe selling into a lower market later on. As Todd mentioned, raising into an 'up cycle' may be great for the tax man, but when you have to buy replacements in the same market 'you don't have much left over' and still run the risk of the market tapering off.

2) uses the financial strategy of building equity instead of paying it out to the tax man. What ends up on on the tax form can be a lot different than what ends up in the 'north forty'. That way you are keeping your assets on your land and building for the future. Manage your risk by buying good cattle, building equity and keeping the tax dollars in your pocket.

Hope this helps,
Richard

 

[jerry27150]

i agree with ollie, if i had land & money i would definitely buy me some cows