how do you make money on cattle?

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Before you all jump down my throat go back and read.... I know what the coasts involved are and I to have a real day job as does my husband
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
 
Very well said txshowmom,
I am a regular 9-5er with a substantial real estate investment portfolio on the side. I got a small operation (less than 80 acres and only 12 commercial cows and a bull) but I make a killing on write-offs.
I estimate my small cattle operation nets me close to $13K in tax benefits per year with virtually no work, real cash outlay or real labor investment. It also produces about $3K in cash from the sale of calves which I don't take anywhere but have a buyer go pick them up himself.
Just as in any other business, you have to have a niche and I found mine.
I don't like at the ranch, I don't pay a Vet, I just go there once a week two and make sure the are still there. Done this for 5 years and can't say I've come across any real problems.
My real benefit from this are the Saturdays when I just drop by and take long walks by the tanks with the wife.

Good for you. I think its great that your ranch works for you. Good luck.
 
Well, I have friends who are big cattle ranchers and I can tell you, they don't susffer or work as much as many of some posts I've read so far. I got a close friend in Ennis, TX that has 800 acres, 200 Reg Angus and has a guy working there full time. My friend lives in Fort Worth and nets about $35K per year. The whole thing cost him around $640K three years ago. he pays no taxes on any of his other businesses and this operation still makes him a profit with assets constanly appreciating.
I think you can make money in cattle as long as you have the capital outlay and don't expect to live from it.

Tom
 
I may be a new member here but this is AMERICA and I guess I can speak, since I also have been put in my place by a person on this board. I do believe that same person has a serious better than thou attitude.
 
Campground Cattle":3t0k2s02 said:
I guess we need to get Macon to add a new board for the small stupid cattlemen. Pardon me Cattleperson.

How 'bout a board for the "not big but still sharp enough to squeeze a profit out of them" folks. Without economies of scale kicking in it takes even more cattle savvy. And I still say the money in cattle is made on the front end, not the back. It's keeping a sharp pencil with expenses and overhead, culling, avoiding debt wherever possible, tax laws, and making wise decisions that keep you flush -- it's not about making a killing when it's time to sell. Just plain old down home horse sense.

Craig-TX
 
You guys have it all wrong. I am not saying that people who don't have a lot of land are stupid or that they don't know what they are doing. The point was nobody knows anything about anybody on this board so if you are new to the cattle buisness how ther hell do you know who you should listen too. Sorry if I hurt anyones feelings it was not meant that way.
 
Craig, I entirely agree.
I consider the cattle business just like any other. You make the right decisions and investments and there is no reason why the returns should not be appropriate. The same can be said with real estate, in which I have plenty of experience. There people hurting in real estate like you won't believe but its those that didn't overbuy, overspend or undermanage that are still making decent returns.

Tom
 
txshowmom":19sbgg6a said:
there are a lot of people that are full of be nice and should keep their comments to themselves.

Maybe you should take your own advice.
 
The point was nobody knows anything about anybody on this board so if you are new to the cattle buisness how ther hell do you know who you should listen too.

Actually, I would like to think that I know quite a bit about several people on this board, and have the begginings of some really good friendships here. And yes, I am small time. I farm 350 acres and run only 60 pairs. But manage to make a profit on my registered stock.
 
Craig-TX":3vihrhzh said:
Campground Cattle":3vihrhzh said:
I guess we need to get Macon to add a new board for the small stupid cattlemen. Pardon me Cattleperson.

How 'bout a board for the "not big but still sharp enough to squeeze a profit out of them" folks. Without economies of scale kicking in it takes even more cattle savvy. And I still say the money in cattle is made on the front end, not the back. It's keeping a sharp pencil with expenses and overhead, culling, avoiding debt wherever possible, tax laws, and making wise decisions that keep you flush -- it's not about making a killing when it's time to sell. Just plain old down home horse sense.

Craig-TX

Thanks Craig

It can be a real challenge to squezze a profit out of them. I think the big boys forget all the benefits of the small operations. The local tractor dealership that does ten times the business with the small operators. The tractor dealershps, feedstores, Vets and etc. could not survive on the large operations only. The average herd in Texas is 12 head according to TAMU . I have never been envious of the the Larger Operators actually I always been proud that you could be so sucessful. I couldn't handle a larger operation my plate is full and I know it.
 
Campground Cattle":2k70pd65 said:
Craig-TX":2k70pd65 said:
Campground Cattle":2k70pd65 said:
I guess we need to get Macon to add a new board for the small stupid cattlemen. Pardon me Cattleperson.

How 'bout a board for the "not big but still sharp enough to squeeze a profit out of them" folks. Without economies of scale kicking in it takes even more cattle savvy. And I still say the money in cattle is made on the front end, not the back. It's keeping a sharp pencil with expenses and overhead, culling, avoiding debt wherever possible, tax laws, and making wise decisions that keep you flush -- it's not about making a killing when it's time to sell. Just plain old down home horse sense.

Craig-TX

Thanks Craig

It can be a real challenge to squezze a profit out of them. I think the big boys forget all the benefits of the small operations. The local tractor dealership that does ten times the business with the small operators. The tractor dealershps, feedstores, Vets and etc. could not survive on the large operations only. The average herd in Texas is 12 head according to TAMU . I have never been envious of the the Larger Operators actually I always been proud that you could be so sucessful. I couldn't handle a larger operation my plate is full and I know it.

makes me wonder how it the world you guys running cattle on a 1000 acres even have time to think about these boards.. like campground, i cant handle much more. my 40 pair it about it.

jt
 
certherfbeef":1ch0vxs2 said:
The point was nobody knows anything about anybody on this board so if you are new to the cattle buisness how ther hell do you know who you should listen too.

Actually, I would like to think that I know quite a bit about several people on this board, and have the begginings of some really good friendships here. And yes, I am small time. I farm 350 acres and run only 60 pairs. But manage to make a profit on my registered stock.

Heck your pretty big by my standards, we are a little tiny itsy bitsy operation of 50 acres still manage to run 25 to 30 mamma cows on grass only. O yea I do have a Big Hat to. As friends go I have made quite a few fromt this board. If I need advice I have txag, cherokeeruby, la4, texan, craig, certherf, lafont tr and sid 411 to name a few.

Sorry forgot to ad jt, CCR and Cattleannie good levelheaded cattlepeople and as Craig says that have horse sense.
 
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 damn thing to someone else.

Tom
 
I've read the board and the comments about starting out and making money in the cattle business. Well for me I'm only doing it because I love cattle and hopes to own a big ranch some day.I'm almost knee deep in bahia grass and I only have 16 acres so there will only be no more than 6 animals on it. It's just buying quality animals is getting deep in my pockets.
 
cattlemen":3c3ckujc said:
I've read the board and the comments about starting out and making money in the cattle business. Well for me I'm only doing it because I love cattle and hopes to own a big ranch some day.I'm almost knee deep in bahia grass and I only have 16 acres so there will only be no more than 6 animals on it. It's just buying quality animals is getting deep in my pockets.

Remember build for the bad not the good times I was knee deep in Bahia. The 99/00 drought taught me right quick I had to back down to 25 to 30 head. I have mainly bottomland and better grass normally than my neigbors. Free fertilizer at the bottom of the hill, at least that's what I tell my neighbor every time he fertilizes.
 
txshowmom":2ptlb0nm said:
The point was nobody knows anything about anybody on this board so if you are new to the cattle buisness how ther hell do you know who you should listen too. Sorry if I hurt anyones feelings it was not meant that way.

The point is that many of us know quiet a lot about some others on this board.

But with your attitude you will have very littlle chance of being one of those lucky ones.
Maybe you would know more about who to listen to if you would read some of the other posters comments instead of trying to show how much that you really dont know.

Sometimes it is wiser to keep quiet and be thought a fool than to make a lot of noise and remove all doubt.
 
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