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How in the world can you make money in this market?
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<blockquote data-quote="ddg1263" data-source="post: 615566" data-attributes="member: 8445"><p>I have been in the business for just about a year, and it is slowly sinking in about how hard it is to turn a profit in the cattle business. It is just a shame to see all those calves go by in the sale barn selling for that cheap. People have got to be loosing a ton of money each year, and it looks like it is getting worse by the month. Input costs are up. Granted we have seen some softness over the past 2 months, but in general they have not retreated in comparison to what calf prices have dropped. Land costs are still high, but if you go to the store to buy that steak, it is still as high as ever. </p><p></p><p>You know people keep saying that you have to love the cow business to be in it, and I actually do. I have never enjoyed something so much in my entire life. However during my life, I have seen many business, and each one of them had to turn a profit to stay in business or eventually close up. People today will quickly say that well if you had the land for free or if you had an edge here you could make it. But my contention is that no matter which business you are in you have to account for everything in order to keep it going. I know the Cargill's of the world will make what they have to in order to stay in business, but the guy who has a few head and sales to the sale barn has got to subsidize the wealthy by not accounting for his tractor, truck, and maybe even his land. It just all seems backwards to me if you know what I mean. People still eat, and they pay good money for it. Demand is there, but everyone is probably going to take a loss this year if you are in the cattle business. I know the ones who are selling their 550 lbs heifers for 330.00 are. You can not produce a calf that cheap in this market. Something has to give and I just do not understand it. And on top of prices being down the Government wants to put a tax of 87.50 on each head of beef cows we own now that is a tax of 26.5% of your gross sales on top of already having a loss in your business. Something has got to give! Am I seeing this wrong?</p></blockquote><p></p>
[QUOTE="ddg1263, post: 615566, member: 8445"] I have been in the business for just about a year, and it is slowly sinking in about how hard it is to turn a profit in the cattle business. It is just a shame to see all those calves go by in the sale barn selling for that cheap. People have got to be loosing a ton of money each year, and it looks like it is getting worse by the month. Input costs are up. Granted we have seen some softness over the past 2 months, but in general they have not retreated in comparison to what calf prices have dropped. Land costs are still high, but if you go to the store to buy that steak, it is still as high as ever. You know people keep saying that you have to love the cow business to be in it, and I actually do. I have never enjoyed something so much in my entire life. However during my life, I have seen many business, and each one of them had to turn a profit to stay in business or eventually close up. People today will quickly say that well if you had the land for free or if you had an edge here you could make it. But my contention is that no matter which business you are in you have to account for everything in order to keep it going. I know the Cargill’s of the world will make what they have to in order to stay in business, but the guy who has a few head and sales to the sale barn has got to subsidize the wealthy by not accounting for his tractor, truck, and maybe even his land. It just all seems backwards to me if you know what I mean. People still eat, and they pay good money for it. Demand is there, but everyone is probably going to take a loss this year if you are in the cattle business. I know the ones who are selling their 550 lbs heifers for 330.00 are. You can not produce a calf that cheap in this market. Something has to give and I just do not understand it. And on top of prices being down the Government wants to put a tax of 87.50 on each head of beef cows we own now that is a tax of 26.5% of your gross sales on top of already having a loss in your business. Something has got to give! Am I seeing this wrong? [/QUOTE]
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