how do you make money on cattle?

[hillbilly]

Hope I didn't start all this texashowmom BULLSH!T talking about all those neighbors that don't make money.
That's just comon BS in my part of the world, but we are not rich, for sure.

We farm a small 160ac & rent 80 ac right behind us. And yes, we are stupid...
We bought our land and still have two annual payments of $8,475.24 to go.
Maybe after its payed for we can show a little more profit.
Taxes have gone from $228 year to $2100 year since 1986.

I rent the 80 ac for $1200 year, no taxes.

If I were to start over I'd have a small home place [40 ac] and I would rent or lease the rest, and become a "Truck Farmer" like most of my friends.

You don't have to have 1000 ac of land to have a 1001 ac of experiance.

Hillbilly

 

[Craig-TX]

You don't have to have 1000 ac of land to have a 1001 ac of experiance.

LOL. So true. Reminds me of one of my dad's lines when he sees some blowhard trying to cut a wide swath. That idiot doesn't have 20 years experience. He has one year of experience 20 times in a row.

Craig-TX

 

[Campground Cattle]

You don't have to have 1000 ac of land to have a 1001 ac of experiance.

LOL. So true. Reminds me of one of my dad's lines when he sees some blowhard trying to cut a wide swath. That idiot doesn't have 20 years experience. He has one year of experience 20 times in a row.

Craig-TX

Absolutely love it got to remember that one.

One from my departed Dad I always loved

You can't plow the field until you get the mules attention .

 

[Anonymous]

For your information I have done my share of nursing out claves, some of them for weeks before they learn to nurse on their own. I have also pulled claves in the middle of the night and hauled feed and water to cows that have gone down due to claving problems. I am well aware of what it takes to run a ranch. I am also aware of what the start up costs are. My husband and I have started our own division of the ranch and have purchased our own land and seedstock so don't tell me what you think you know about me.

Is the name of your ranch Heritage?

 

[CattleAnnie]

Hey there Txshowmom. Now I didn't mean to get your dander up with my post to the fellow asking questions.... all I did was offer an opinion. If I offended you, I apologise. Hence the reason I started my post with "No offense".

It certainly wasn't meant to suggest ignorance on your part. I simply intended to share a little insight in cow/calf operations to someone that was interested in the industry.

Now from what I've read of the posts by other folk on the board, they also were offering their advice and opinions. If they happen to differ from yours, it doesn't mean that they are deriding you. It simply means they may have a different viewpoint than you. No big deal. We can't all have the same life experiences, but we can all share advice. That's what makes this message board such a wonderful place to visit - the diversity of the people that take the time to ask questions, share experiences and offer advice.

Take care.

 

[frenchie]

This question may seem like a joke but I am serious. I am new to raising cattle and I bought books and read them and understand how to select and take care of the animals but I have yet to understand the business side of it. I am not looking to quit my day job, but I would like to at least make a profit however small it may be.

The more the cattle weigh, the cheaper they are per pound. I recently bought some steers at 450 lbs and put about 100 lbs on each of them. I sold them and basically got back what I paid for them. The prices at the auction were roughly the same as when I purchased, it was just the heavier cattle are cheaper that killed me. So how does one make money? It seems that mearly putting weight on cattle won't do it.

Ist off if your buying stockers, you need to put as much wt on as possible as cheaply as possible.

We used to buy400 wts that needed castrating and dehorning etc. We would bring them home clean them up,and put 400 lbs plus on them on grass. Because we bought projects we made good.

We also bought real good heifers that we grassed to around 900 lb s, and sold as open heifers.


There are lots of oppurtunities out there,you just need to find them.

 

[MULDOON]

Thank you for correcting me :lol: :lol: :lol: :cboy:
What was I thinking?
We havn't met yet, so welcome from me, There are a lot of really great people here.
Hope you enjoy your self here. I do :lol:

 

[Mahoney Pursley Ranch]

I have enjoyed it so far,alot of great people here !

 

[Anonymous]

Wow, if that's what TAMU says then I'm very average with only 12 head. I thought I was the exception.
One thing to note for the people trying to get involved in this business; just as with anything else, you must love it and have a genuine interest in order to succeed. Right financial decisions keep you from going broke.
My personal advice is:
1) learn from others' mistakes and sucesses
2) start small so that you can grow strong
3) whenever possible, buy land cash; otherwise, you will be making payments on non-income productive assets. If you have to finance land, then you can't afford it. Land must be well fenced, water, and good grass before you consider buying it.
4) buy commercial pair or 3-in-1's
5) don't buy anything else for the first year. Just land and cattle. If it works out for you then expand; if not, sell the whole be nice thing to someone else.

Tom

Gee, I don't know anybody that's got enough money to start like that. Good fence, good grass, 3/1's. Pay cash for it all or you can't afford it? If I had that kind of money I might just play the market and whistle at the girls walking by.

 

[Anonymous]

IN my opinion if you don't have the capital to invest and risk loosing, then you shouldn't invest at all. I've seen and read about people borrowing to buy land only to turn around and get it foreclosed on. Borrowing to buy cattle as a beginner is even worse because cattle are not real assets. What happens if they die, get sick, or prices drop too low? The beginner risks loosing initial investments in down payment as well as ruining their credit.
Once the person becomes knowledgable and knows more about the business then he can go into more leveraged deals with borrowed money.

Tom

 

[Mahoney Pursley Ranch]

TRUE DAT !

 

[Anonymous]

IN my opinion if you don't have the capital to invest and risk loosing, then you shouldn't invest at all. I've seen and read about people borrowing to buy land only to turn around and get it foreclosed on. Borrowing to buy cattle as a beginner is even worse because cattle are not real assets. What happens if they die, get sick, or prices drop too low? The beginner risks loosing initial investments in down payment as well as ruining their credit.
Once the person becomes knowledgable and knows more about the business then he can go into more leveraged deals with borrowed money.

Tom

All good points, only problem is, a least around my part of the world it would take a large some of money to start out like that. I don't know of too many people that's got that kind of money just laying around. If you figure, again in my part of the world, the land you describe could run upwards of 15 to 2 thousand dollars an acre. Figure if you just wanted to try and make a profit on say 100 acres, you looking at 150 g's just for the land, and your gonna pay for that out of your pocket? :shock: I couldn't do it. And that's just the land. And I'd think if you was gonna buy the land you better have some capital to by some things to keep it up. That could be another 100 g's. Like I say, speaking for myself, I ain't got friends that can drop 250 g's and go play cowboy. Can't speak to cow country in Argentina. :cboy:

 

[dun]

IN my opinion if you don't have the capital to invest and risk loosing, then you shouldn't invest at all. I've seen and read about people borrowing to buy land only to turn around and get it foreclosed on. Borrowing to buy cattle as a beginner is even worse because cattle are not real assets. What happens if they die, get sick, or prices drop too low? The beginner risks loosing initial investments in down payment as well as ruining their credit.
Once the person becomes knowledgable and knows more about the business then he can go into more leveraged deals with borrowed money.

Tom

All good points, only problem is, a least around my part of the world it would take a large some of money to start out like that. I don't know of too many people that's got that kind of money just laying around. If you figure, again in my part of the world, the land you describe could run upwards of 15 to 2 thousand dollars an acre. Figure if you just wanted to try and make a profit on say 100 acres, you looking at 150 g's just for the land, and your gonna pay for that out of your pocket? :shock: I couldn't do it. And that's just the land. And I'd think if you was gonna buy the land you better have some capital to by some things to keep it up. That could be another 100 g's. Like I say, speaking for myself, I ain't got friends that can drop 250 g's and go play cowboy. Can't speak to cow country in Argentina. :cboy:

Land costs is one of the major problems with young people getting into the acriculturaal business'. Doesn't matter if it's row crops or cows, younguns can't afford to by the land to get started.

dun

 

[MULDOON]

Yup, They've probably walked out of the building!!
Well Folks I'd like to apoligize for getting off track.
Hope ya'll have a great weekend and make lots of money :lol: