TANK30705
Well-known member
I would like to hear opinions on how large a herd do you think it takes to make it financially just cattle farming full time???
Isomade":sh5ppxu9 said:Lots of variables. But for me, 100% debt free and I could make it work at about 350-400 with excellent low input management.
Prices won't bee this good forever, in the long term an operator who can average $100 profit per calf is a very good operator. Some years may be more and some will definitely be less. Those who stay in business after the prices come back to reality are the ones who are putting money back now and preparing for reality. 240 cows will wean 216 calves IF they can get 90% to market, thats a profit of $21,600 per year, but it doesn't work like that. You may lose money for two years then make a profit of $38k the next. You just can't tell.TennesseeTuxedo":zahi6u4g said:Isomade":zahi6u4g said:Lots of variables. But for me, 100% debt free and I could make it work at about 350-400 with excellent low input management.
Why so many Iso? I was thinking around 200-240 assuming no debt to service.
Can't do it from ZERO and expect to even come close. The ranchers around here that make a living with 300-500 are all between 75-85 years old and are very, very frugal. They have been doing it all their lives. They dont drive fancy trucks or have nice equipment. They make use of everything, and I mean everything. Every penny is accounted for. One of em refuses to have central heat and air in the house or any AC units of any kind for that matter.ohiosteve":113j582r said:Personally I couldn't even imagine jumping into the beef cattle business starting from zero and expecting to live comfortably. Dairy on the other hand I think it is feasible if you are an efficient operator since you have a daily income you can predict with reasonable accuracy.
You quoted today's market price. What about those same calves at .95? That is a $66,000 swing in gross. .95 X 600 is $570, the national average to keep a cow for one year is $550. Tux, whatever you do don't figure on today's prices for the long haul. There is a bit of a margin but if prices don't drop expenses WILL go up enough to compensate for the difference.TennesseeTuxedo":26dq9s4v said:So if a fella has everything paid for and only owes property taxes each year and he sells 200 calves weighing on average 600 pounds at and average price per pound of $1,50 (conservative in today's market where I am anyway) that would be $180,000 in gross revenue.
What the heck are these cows doing to burn through $160,000 to leave a net profit of just $20,000 if the net profit is only $100 a head?
You are figuring on TODAY'S prices. And you left out the cows that didn't calve and had calves that died. If you run 50 or more you are a very good operator to get 90% to sale. You have to feed those 10% that didn't as well. If you get 100 calves to sale you had 112 cows, 12 didn't wean a calf and they cost you $6000 to feed.hooknline":10ulm81g said:I've asked that question many times and never have gotten a straight answer.
My gut is telling me lots and lots of high dollar equipment, loans on the land, and other debt load.
Let's do some math real quick.
100 calves at 600 lb wean at 150 cwt sale price. That's 90,000.
Carrying cost of mom at 1.25/day at 365 days is 45,625 actual cost to carry 100 cows. That leaves
44,375 profit. Let's take out 50 bucks a calf for shots, supplies, implants erc. And that's a high number. That's still 39,375 profit.
Add in fertilizer cost, land taxes, and misc costs. Let's say another 100.00/ pair avg. and that's probably high. That's still leaves 29375 profit off 100 calves assuming a 100% calf crop. But wait, that not counting the cow as a retained asset and her sale price assuming she doesn't die on the farm.
Depends on a lot of factors but in general if we're talking grass hay and assuming 4x5s 3.5-4 per cow.TennesseeTuxedo":wl2uoks8 said:How many round bales does a cow eat over a 4 month long winter do you suppose?