Going Out of the Cattle Business

[inyati13]

With my famous Brother, Big Sky High Tree Azz selling his cows and Isomade, it came to mind that I have been seeing that happen for the last 4 years. Many of the older guys have sold their cattle and leased the better land to grain. There is a guy I just saw a half hour ago who is about 60. I talk to him at the YMCA. He sold his cattle and he was a large operation and now leases his land near Maysville for soybeans and corn. He told me this morning it has been great for him. Much less stress. More time to do some things he wanted to. He said it does NOT hurt him if the crops fail, he still gets his lease check.

But the ones who think they will get back in may be miscalculating. The one economic scenario that is sure to play out in the US is continued inflation. This nation has no strategy for closing the door on more barrowing of foreign currency. When money is worth less, commodities like beef hold their value and the difference is reflected in higher prices. There are corrections in all markets but they may be higher lows and shorter lows than we have experienced in the past. JMO. Not really worth much but there it is.

 

[JWBrahman]

With my famous Brother, Big Sky High Tree Azz selling his cows and Isomade, it came to mind that I have been seeing that happen for the last 4 years. Many of the older guys have sold their cattle and leased the better land to grain. There is a guy I just saw a half hour ago who is about 60. I talk to him at the YMCA. He sold his cattle and he was a large operation and now leases his land near Maysville for soybeans and corn. He told me this morning it has been great for him. Much less stress. More time to do some things he wanted to. He said it does hurt him if the crops fail, he still gets his lease check.

But the ones who think they will get back in may be miscalculating. The one economic scenario that is sure to play out in the US is continued inflation. This nation has no strategy for closing the door on more barrowing of foreign currency. When money is worth less, commodities like beef hold their value and the difference is reflected in higher prices. There are corrections in all markets but they may be higher lows and shorter lows than we have experienced in the past. JMO. Not really worth much but there it is.

CME has had a few big scares since early summer yet feeders are still bouncing around $2.10 while live cattle is holding steady above $1.50.

 

[skyhightree1]

Lol I'm down but not out. I tell you small #'s free up time and make you appreciate the ones you have.

 

[inyati13]

Lol I'm down but not out. I tell you small #'s free up time and make you appreciate the ones you have.

I will probably always be understocked. I don't want to get much bigger. Thst way I can enjoy the ones I have and put more time into setting up my matings.

 

[skyhightree1]

I can understand that. There is a fine line between loving to do something and it turning into too much work and losing its appeal.

 

[Limomike]

Lol I'm down but not out. I tell you small #'s free up time and make you appreciate the ones you have.

Ok, so whats the difference in having 20 versus having 60? I know the answer is 40.. I had some learnin in my syferin.. but when I got into the business, my Dad said "if your gonna raise 20, you may as well raise 60".

 

[skyhightree1]

Lol I'm down but not out. I tell you small #'s free up time and make you appreciate the ones you have.

Ok, so whats the difference in having 20 versus having 60? I know the answer is 40.. I had some learnin in my syferin.. but when I got into the business, my Dad said "if your gonna raise 20, you may as well raise 60".

For me its easier to manage. Less time working 20 than 90 something. Its easier to move them. so on and so forth. I may go up in numbers again but highly doubtful unless prices drop way down. :cowboy:

 

[Nesikep]

I think these prices are only going to make more of the old timers get out of cattle (maybe have a couple to look at). And I can't blame anyone who does right now.

 

[bigbull338]

the high prices across the board have old cattlemen cashing out completely or thinking they will go back in when prices drop.i have a friend thats culling his herd.plus he is thinking about selling out and jumping back in if prices go down.i told him to keep the best of his cows and stay in.because i really dont see cow prices going back down.

 

[denvermartinfarms]

Lol I'm down but not out. I tell you small #'s free up time and make you appreciate the ones you have.

Ok, so whats the difference in having 20 versus having 60? I know the answer is 40.. I had some learnin in my syferin.. but when I got into the business, my Dad said "if your gonna raise 20, you may as well raise 60".

I would agree with your dad, 20 or 60 not much difference. 20 or 300 is a different story.

 

[denvermartinfarms]

the high prices across the board have old cattlemen cashing out completely or thinking they will go back in when prices drop.i have a friend thats culling his herd.plus he is thinking about selling out and jumping back in if prices go down.i told him to keep the best of his cows and stay in.because i really dont see cow prices going back down.

I agree, I think they may get cheaper, but not enough to make a great profit by jumping in and out. If you own a herd of cows the only thing affected during that time is you sell some calves cheaper. yes your cows may lose a 1/3rd of there value during that time, but if you'll stick with it that doesn't matter.

 

[denvermartinfarms]

I know My views and comments in discussions like this are going to be alot different than many others. I always lean towards keeping more and sticking with it because I have no choice.

My cattle operations are my only source of income and my full time job. So if I say I would like to sell some to have more free time, it's the same as saying I don't want to be able to pay my bills and make a living.

 

[Limomike]

My cattle arent my only source of income, but I am in it for the long haul.. so I feel the same way as you do denver.. I really dont see cattle dropping significantly for me to sell out, and then start again, unless I was maybe going to switch breeds. .
I'm no knockin those who do... its just a personal choice.

 

[Bigfoot]

I think all the time about going out of cows, and calves. I'd background two large groups a year, take December, january, and most of February off. Put up almost no hay. It'd be a good way to go for me.

 

[Stocker Steve]

Ok, so whats the difference in having 20 versus having 60? I know the answer is 40.. I had some learnin in my syferin.. but when I got into the business, my Dad said "if your gonna raise 20, you may as well raise 60".

If you have a simple pasture based system then the difference is a couple hours per year to work more cattle.
If you are making hay and providing creep and backgrounding calves than there is a huge difference.

 

[denvermartinfarms]

I think all the time about going out of cows, and calves. I'd background two large groups a year, take December, january, and most of February off. Put up almost no hay. It'd be a good way to go for me.

For the work and time involved I agree completely. But with calves at the price they are now I would not want to go that way myself. I like the security of owning paid for cows and letting them raise me a calf every year for the cost of owning the cow.

 

[Isomade]

With my famous Brother, Big Sky High Tree Azz selling his cows and Isomade, it came to mind that I have been seeing that happen for the last 4 years. Many of the older guys have sold their cattle and leased the better land to grain. There is a guy I just saw a half hour ago who is about 60. I talk to him at the YMCA. He sold his cattle and he was a large operation and now leases his land near Maysville for soybeans and corn. He told me this morning it has been great for him. Much less stress. More time to do some things he wanted to. He said it does NOT hurt him if the crops fail, he still gets his lease check.

But the ones who think they will get back in may be miscalculating. The one economic scenario that is sure to play out in the US is continued inflation. This nation has no strategy for closing the door on more barrowing of foreign currency. When money is worth less, commodities like beef hold their value and the difference is reflected in higher prices. There are corrections in all markets but they may be higher lows and shorter lows than we have experienced in the past. JMO. Not really worth much but there it is.

1. I'm not old, you're old enough to be my grandpa.
2. I'm not out of the cattle business
3. I didn't lease my land
4. Any correction in the cattle market in the next 5 years will more than likely only come from a health scare if anything.
5. I don't have anything else I just wanted to put up 5 responses.

 

[john250]

Sell high. I'll bet you got a price you were happy. Everything has to be for sale, or business would grind to a halt.

 

[highgrit]

Isomade, your a trip like always. You did good I'm sure, but shipping one at a time had to be costly. And your son - family is all a person has when you come right down to it. I'm worried about the gas prices going to $5.00+ a gallon and people having to choose where they want to spend their money. Good luck and have some fun.

 

[TennesseeTuxedo]

With my famous Brother, Big Sky High Tree Azz selling his cows and Isomade, it came to mind that I have been seeing that happen for the last 4 years. Many of the older guys have sold their cattle and leased the better land to grain. There is a guy I just saw a half hour ago who is about 60. I talk to him at the YMCA. He sold his cattle and he was a large operation and now leases his land near Maysville for soybeans and corn. He told me this morning it has been great for him. Much less stress. More time to do some things he wanted to. He said it does NOT hurt him if the crops fail, he still gets his lease check.

But the ones who think they will get back in may be miscalculating. The one economic scenario that is sure to play out in the US is continued inflation. This nation has no strategy for closing the door on more barrowing of foreign currency. When money is worth less, commodities like beef hold their value and the difference is reflected in higher prices. There are corrections in all markets but they may be higher lows and shorter lows than we have experienced in the past. JMO. Not really worth much but there it is.

1. I'm not old, you're old enough to be my grandpa.
2. I'm not out of the cattle business
3. I didn't lease my land
4. Any correction in the cattle market in the next 5 years will more than likely only come from a health scare if anything.
5. I don't have anything else I just wanted to put up 5 responses.

And for the record Sky is about your age as well and I'm old enough to be your extremely young and athletic uncle so watch out how you talk to my older (much, much older) big brother!