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Grass fed opportunity ?
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<blockquote data-quote="Brandonm22" data-source="post: 673057" data-attributes="member: 7645"><p>He has 60 acres of good grass. What can that realistically support? 30 moma cows/ maybe? Or 40 finisher steers maybe? I have no idea but assume I am guessing right. Lets assume that we buy calves and finish them on grass and there is no cowherd chewing up all the grass. If calves cost $600 and one year later you can sell the finished grass fed steers for (assume a good price) $2000 plus the butcherin costs, then you GROSS $1400. Times 40 and assuming that 2 calves die that is $52,000 GROSS. They need minerals, fence repairs, fertilizer for the grass, dewormer, vaccinations, diesal for the tractor, and then there is the cost of marketing. Let be really OPTIMISTIC and say all that only cost $250 a head. Now our $52,000 is down to ~$42,000. Nobody lives close enough to walk to check on the cows. You are ~60 miles away. For you to visit these steers 3 times a week is 360 miles a week. At 20 mpg and $2.5 a gallon that is ~$2387 just in additional fuel costs not counting the ~18,720 miles you are putting on your truck. Assuming your mileage comes out of your half as his mileage comes out of his half, I am coming up with a maximum payout to you of $18,613 and I think all my numbers are wildly optimistic and I HATE all partnerships. My recommendation is to walk away from this deal; but I don't know the details well enough (stocking rate, rainfall, opportunity cost, selling price, etc) to make that with any degree of certainty.</p></blockquote><p></p>
[QUOTE="Brandonm22, post: 673057, member: 7645"] He has 60 acres of good grass. What can that realistically support? 30 moma cows/ maybe? Or 40 finisher steers maybe? I have no idea but assume I am guessing right. Lets assume that we buy calves and finish them on grass and there is no cowherd chewing up all the grass. If calves cost $600 and one year later you can sell the finished grass fed steers for (assume a good price) $2000 plus the butcherin costs, then you GROSS $1400. Times 40 and assuming that 2 calves die that is $52,000 GROSS. They need minerals, fence repairs, fertilizer for the grass, dewormer, vaccinations, diesal for the tractor, and then there is the cost of marketing. Let be really OPTIMISTIC and say all that only cost $250 a head. Now our $52,000 is down to ~$42,000. Nobody lives close enough to walk to check on the cows. You are ~60 miles away. For you to visit these steers 3 times a week is 360 miles a week. At 20 mpg and $2.5 a gallon that is ~$2387 just in additional fuel costs not counting the ~18,720 miles you are putting on your truck. Assuming your mileage comes out of your half as his mileage comes out of his half, I am coming up with a maximum payout to you of $18,613 and I think all my numbers are wildly optimistic and I HATE all partnerships. My recommendation is to walk away from this deal; but I don't know the details well enough (stocking rate, rainfall, opportunity cost, selling price, etc) to make that with any degree of certainty. [/QUOTE]
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