Good or bad investment

[cowboy43]

Locally there is 82 head of brangus cross White face 2 year old heifers to calve Jan. to March Price is $2300 per head.
My thought is : three years or more just to pay for the cows.
Three years pasture cost, feed, interest, death, not a 100 per cent calf crop plus
Any other cost applied to raising cattle.
My question is does this pencil out in the end, or is it a losing investment.

 

[Ol' 243]

They better be awesome stuff for 2300.00 a head. I'm looking at 10 right now and the guy wants 18K, I'm going to offer him 16K and see what happens. They are 2 year old and due in March/April

 

[TennesseeTuxedo]

Are you two 43's related? Lol, sorry, couldn't resist.

 

[TennesseeTuxedo]

On a serious note, why are you amortizing this investment over 3 years rather than 5?

 

[City Guy]

What else might you do with the money?

 

[Ol' 243]

Are you two 43's related? Lol, sorry, couldn't resist.

He better hope not, I come from a shytty pedigree. Lot of culls in my background.

 

[Cross-7]

You can buy 1st calf pairs with 200# calves for that, maybe even bred back
With the current market that's too high
Just my 2 cents

 

[TennesseeTuxedo]

I'm going to a dispersal sale next Saturday and I plan to bid on young cows with 6 month old calves that are bred back. I plan to pay too much. (To a point that is)

 

[Ojp6]

There should be a lot of spring calving heifers selling at $1500 and cheaper over the next two months. They may creep up as they get heavier bred but I would be willing to bet a lot of the true top end commercial bred heifers will be sold under $1800 this winter barring a major market turnaround.

 

[True Grit Farms]

I'm going to a dispersal sale next Saturday and I plan to bid on young cows with 6 month old calves that are bred back. I plan to pay too much. (To a point that is)

I hope no ringers are reading this.

 

[TennesseeTuxedo]

I'm buying registered gals.

 

[TennesseeTuxedo]

I'm going to a dispersal sale next Saturday and I plan to bid on young cows with 6 month old calves that are bred back. I plan to pay too much. (To a point that is)

I hope no ringers are reading this.

I hope they are.

 

[Caustic Burno]

Locally there is 82 head of brangus cross White face 2 year old heifers to calve Jan. to March Price is $2300 per head.
My thought is : three years or more just to pay for the cows.
Three years pasture cost, feed, interest, death, not a 100 per cent calf crop plus
Any other cost applied to raising cattle.
My question is does this pencil out in the end, or is it a losing investment.

Way high for here those heifers would have a tough time penciling out.
Especially that many heifers some are going to crap out.

 

[JMJ Farms]

Id love to own them myself. But to be perfectly honest, and Keep in mind I'm in the southeast so that affects what they are worth, @ $2300/hd I believe it would take 10 years to break even if you figure purchase price, feeding and carrying costs, death loss, having your money tied up, weaned calf %, etc. But, we may not even be here in 10 years so if you can afford to take the chance without taking food off your table, I say go for it.

 

[Rafter S]

As you said, at current prices it will take the gross income for three years just to pay for the cows, assuming you don't lose any cows or calves in those three years. That's not figuring anything for expenses. In my opinion (and it's guaranteed to be worth what it costs) that's around $500.00 per head too high.

 

[1982vett]

Im with Rafter and CB. Current market and forecast......being I'd be buying and not selling, I'd rather be in the $1250 range.

 

[TexasBred]

If they're really good they might bring $1500 here. Then you gotta worry about calving all of'em out.

 

[Brute 23]

$1500 would be my max if they were exceptional animals. Especially if I was buying that amount.

Are they being marketed thru some one or direct from the owner? Sounds like more than one set of hands in that cookie jar.

 

[skyhightree1]

You can buy 1st calf pairs with 200# calves for that, maybe even bred back
With the current market that's too high
Just my 2 cents

Way too much for the current market... Ask the some of the guys here eating scrapple and potted meat that bought 50 of those 2600 heifers on someone elses money.

 

[TennesseeTuxedo]

Key there Sky is using borrowed money. Debt can crush a fella.