WinterSpringsFarm said:
Brook hill, I'd really like to see some numbers from your operation. Like all your input costs, and your net profit per calf. And then pick your best cow and figure up her net profit over her lifetime, make sure you are figuring the amounts of feed in there. Along with all the basics like fuel, property taxes, so on so forth.
My guess is your way would look pretty scary. You might be a really good guy, but on the Internet you act like the 15yr old boy who is trying to gain acceptance by being a little be nice. And it's kind of hard to ignore you since you post everywhere.
I appreciate your fatherly remarks.
Seriously, would anyone on here, or elsewhere turn over their financials to you for perusal?
If I were running a strictly commercial operation with mix breed genetics, then I would probably invest all my money in a perimeter fence, and say "good luck y'all" The inputs would be minimal at best. The cheapest of everything, minerals, hay, etc. Those that don't make it, oh well.
However, that is not the operation that I am running. I'm not dealing with razor thin margins, I'm not dealing in a situation whereby when the trailer backs up to my operation, I'm at their mercy. What you are describing is a commodity business. You need economies of scale to eke out a living.
Unlike a lot of people throwing in the towel and folding their cards, I'm not leasing my land out so that a larger operator can run cattle on my farm. I'm not renting out uteruses. I'm not having to sell my replacement heifers just to keep the lights on, and I definitely don't starve my cattle to make the numbers work. S&P 500 companies fire people, then post higher quarterly earnings because they make the remaining people take pay cuts and work harder, and the stock pops, that's not how we roll at Branded. Our gals are relaxed and doing what they are supposed to, getting rare genetics on the ground safely without drama.
Again, I'm not going to share business details with you, because I prefer the Trump approach to disclosure when it comes to you guys. But in the interest of satisfying you, I will say this, my margins are entirely different than those of a commercial operation. Let's say I sell a cow/calf pair. She is of above-average stock, carrying an SAV Raindance calf inside her, bred with sexed semen, and the calf at her side is, let's say a proven son of Sydgen Enhance that someone can use as a herd sire. All the animals sold are DNA tested and proven for parentage. Now let's say you compare that to a cow-calf pair, mystery cow is bred to mystery bull, and has mystery bull calf at her side. Oh, and don't forget, they look like a Calico cat. Do you really think those two pairs will bring the same amount of money? All things being equal? C'mon you are smarter than that, I hope! A box of Cuban Montecristo's sell for a lot more than a pack of Swishers from the gas station.
Did you know that a registered, proven pair eats about the same and takes about the same land as mystery pair, yet the margins are far far better? There is a phrase called working smarter, not harder. It's up to you if you want to adhere to it.
You may not know this, but luxury brands did not go out of business in 2008, in fact, their sales soared. It was the Sears and Kmarts that were shellacked. It's a tale as old as time. Duesenberg and Packard did exceptionally well during the Great Depression, while people were lined up at soup kitchens. Packard actually fell apart when they tried to appeal to the masses. You probably didn't want a history lesson, but look at Cadillac and Lincoln. They were once the standard for quality worldwide, but now, they are super nice vehicles, but they will never have the name that Mercedes or Bentley commands.
I feel bad that I have to explain this to you like a child, but I hope this clears things up somewhat. Nothing personal, but sometimes it takes nothing short of a diagram to point out what should be obvious.
Another thing that is crazy, I was speaking with Bright Raven yesterday about bulls versus heifers and the price they command. I really wouldn't care if I ever had another bull born out here, they are basically a byproduct in many ways. I have a lot of demand for bred heifers, and by that, I mean bred AI, sexed semen, with a clear understanding that a cleanup bull is not the Daddy. If I had 200 registered heifers to sell, all bred to sexed SAV Raindance semen, I could move them in a week at a premium, not the case with 200 bulls whereby I would be at the mercy of the market. Work smart, not hard.
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Lol. You got it bud. I hope to meet you some day.