Grazing stockers

[pricefarm]

I lease some land that I run cow calf pairs on it's about 30 acres and I run 18 pairs on it and have plenty of good grass. The owners doesn't want me to winter the cows there anymore. I really have no where to move the cows to because the other farms I have are pretty well stocked full and I know of I bring in that many more cows that it will be a huge mud hole. With the market the way it is Iam not willing to invest in calves to graze through the summer and sell in fall I think tat would be a big financial risk. So I thought about grazing calves for someone else and getting payed so much per pound of what they gain while they are there. Is there any money to be made by doing this ? Don't really know much about it so can y'all give me some pros and cons

 

[denvermartinfarms]

Yes, there's money to be made. could be a good deal for you and someone else if you can find the right person that wants to work with you.

 

[Kingfisher]

Why would running your own calves be such a risk?

 

[denvermartinfarms]

Why would running your own calves be such a risk?

I think he's scared of buying them and having to sell them at a set time no matter what because he has to take them off the place. If I could rent a place to run calves on in grazing season I wouldn't pass it up.

 

[pricefarm]

Why would running your own calves be such a risk?

I think he's scared of buying them and having to sell them at a set time no matter what because he has to take them off the place. If I could rent a place to run calves on in grazing season I wouldn't pass it up.

Ya that's what scares me buying calves as high as they are right now afaird that this fall they might be cheaper and loose a bunch of money.

 

[Kingfisher]

Why would running your own calves be such a risk?

I think he's scared of buying them and having to sell them at a set time no matter what because he has to take them off the place. If I could rent a place to run calves on in grazing season I wouldn't pass it up.

Ya that's what scares me buying calves as high as they are right now afaird that this fall they might be cheaper and loose a bunch of money.

Well if the price falls in the fall how's your " partner" going to weather that storm?

 

[pricefarm]

I understand what your saying but some people are willing to make that gamble Iam not sure if I would be willing. I know a man that might be willing to put up the money to buy calves and I provide the land and and take care of them. What would be a fair deal split the profit 50-50 ?

 

[denvermartinfarms]

I understand what your saying but some people are willing to make that gamble Iam not sure if I would be willing. I know a man that might be willing to put up the money to buy calves and I provide the land and and take care of them. What would be a fair deal split the profit 50-50 ?

Yes, spliting the profit 50/50 would be close to fair. If anything you would get a little more because all the other person doing is providing money. you have the land and do all the work.

In my opinion you probably shouldn't do it if your afraid of doing it yourself, if your 50/50 with someone on calves you have the same risk of making no money, just that if something happens your parter is losing instead of you.

I actually have a deal just like this where I have someone giving me money for calves that they never see and then we split the profit. But I'm always confident that there won't be any loss or I don't get me or my other people involved. I just can't recommend you doing something with someone else that your afraid of doing yourself.

 

[Toad]

I did weight gainers several year and did okay I guess. Guy dropped them off and provided grain all summer. Picked them up in the fall and payed me a set amount per lb they gained. It worked alright except I really hated being tied down with someone else's cattle. The last year I did it he brought them late after the grass had gotten knee deep and then I was feeding hay for weeks before he picked them back up. Thats when I decided I would just buy my own so I could have more control over what went on.
I've got several smaller places rented where they don't want cattle wintered. What I've been doing and making decent money is to buy old broken mouth bred cows in early spring. Let them calve out and then sell the calves off in early fall. Let the cows go until the grass is gone and then sell them as open butcher cows. I have done better doing that then almost anything else.

 

[denvermartinfarms]

If you don't want to own calves, I would do exactly what toad said.

 

[kenny thomas]

Ya that's what scares me buying calves as high as they are right now afaird that this fall they might be cheaper and loose a bunch of money.[/quote]

Well if the price falls in the fall how's your " partner" going to weather that storm?[/quote]

Kingfisher, here and where pricefarm is also several of the major buyers put calves out on peoples farm like he is talking about. Biggest difference is they either already have them contracted at a fixed price for the fall sale or have a Livestock Risk Protection policy on them. The only concern then is that they do not get sick and that they grow.
50/50 is a lot higher than I hear of here though. .60 a lb was the highest I heard of last year.

 

[JSCATTLE]

I know a man that does what toad does. But he puts a bull on them . Palpates them in the fall sells the bred ones as bred short and solids and the opens go to the kill pen . He pulls all the calves about 3 months before he sells the cows and let's them fatten on grass. No hay to buy .

 

[Kingfisher]

Ya that's what scares me buying calves as high as they are right now afaird that this fall they might be cheaper and loose a bunch of money.

Well if the price falls in the fall how's your " partner" going to weather that storm?[/quote]

Kingfisher, here and where pricefarm is also several of the major buyers put calves out on peoples farm like he is talking about. Biggest difference is they either already have them contracted at a fixed price for the fall sale or have a Livestock Risk Protection policy on them. The only concern then is that they do not get sick and that they grow.
50/50 is a lot higher than I hear of here though. .60 a lb was the highest I heard of last year.[/quote]
Hey Kenny. Yea I'm aware of that strategy. I wonder if you can buy some " risk management " on as few a head poster is suggesting?

 

[cow pollinater]

Talk to your sale barn. Even if they don't have someone willing to send you stockers on a contract they might after you ask. As far as price, that's the owners responsibility on a stocker deal. Your responsibility is to grow them and try to keep them alive.

 

[kenny thomas]

[q
50/50 is a lot higher than I hear of here though. .60 a lb was the highest I heard of last year.[/quote]
Hey Kenny. Yea I'm aware of that strategy. I wonder if you can buy some " risk management " on as few a head poster is suggesting?[/quote]
Yes, you can buy on 1 head or ever how many that you wish. Actually I would advise anyone to try it on a few head to better understand how things works. It has not been collected on the last 2-3 years much but the next 2-3 could be a lot different.

 

[pricefarm]

[q
50/50 is a lot higher than I hear of here though. .60 a lb was the highest I heard of last year.

Hey Kenny. Yea I'm aware of that strategy. I wonder if you can buy some " risk management " on as few a head poster is suggesting?[/quote]
Yes, you can buy on 1 head or ever how many that you wish. Actually I would advise anyone to try it on a few head to better understand how things works. It has not been collected on the last 2-3 years much but the next 2-3 could be a lot different.[/quote]

Kenny I know nothing about risk management. Where would I find out more info ?

 

[kenny thomas]

[q
50/50 is a lot higher than I hear of here though. .60 a lb was the highest I heard of last year.

Hey Kenny. Yea I'm aware of that strategy. I wonder if you can buy some " risk management " on as few a head poster is suggesting?

Yes, you can buy on 1 head or ever how many that you wish. Actually I would advise anyone to try it on a few head to better understand how things works. It has not been collected on the last 2-3 years much but the next 2-3 could be a lot different.[/quote]

Kenny I know nothing about risk management. Where would I find out more info ?[/quote]
Farm Bureau, but they will refer you to I think it is the Richmond office. Several companys offer it. I think maybe a dozen or so. Google Livestock Risk Protection for more info. We have had a Farm Bureau rep talk to our livestock association is how I know about them.

 

[pricefarm]

Thanks Kenny I have all my ins through them I will check with them.

 

[Ojp6]

Idk if you know someone who would partner with you but that is a different way to spread out risk a little bit. One guy I know works with a guy who isn't in the cattle business and they split the cost of everything. At the end the guy with just money in it gets 1/3 of the profit after expenses and the guy with the other half the money in and does all the work gets 2/3 of it. That seems to work really good but if you do it his way it's nice to be able to go to the sale and buy the cattle yourself to make sure you don't get into them too high. The best way to lose money is to start out way too high.

If the cattle lose money they split it in half but they haven't lost money in years.

 

[Brentp]

I believe Farm Credit sells LRP, at least in Tennessee. Not sure about Farm Credit of Virginia.

What is Craig Hammonds paying to graze calves this year?