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How many cows to be full-time Rancher?
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<blockquote data-quote="Arnold Ziffle" data-source="post: 176441" data-attributes="member: 43"><p>OBB, your first comment on this thread seemed pretty believable to me --- you said you could <u>winter the cow</u> for $150 and that sounded plausible to me, for central Oklahoma. The cost for merely wintering a cow for 2 or 3 months in Ok. is a lot different than the costs most folks herein are writing about, so your subsequent comments are what throw most of us for a loop, I imagine. In computing their costs most folks figure a charge for depreciation on equipment, fencing, purchased cows & bulls, building, etc. (less expected salvage value). And the list could go on. You may not have to incur those high dollar costs in any one particular year, but over time you sure will, so the amortization of such costs really has to enter into the computation of cattle keeping cost. I think to do otherwise is something akin to Enron accounting fantasy. And to really get an accurate picture you probably should add in the costs that you have avoided simply by bartering for goods & services. Something else to consider, and that is putting in a cost for pasture and facilities use of at least the amount that you would have to pay to rent comparable ground in the area. In analyzing costs, not putting in a charge for land use, along with having no interest payments on land debt, can surely make an operation look more profitable than it really is. But I applaud you for doing whatever you can to keep you overall costs low and it sounds like you really are keeping them low for the time being. Your cost accounting is just a little deficient IMHO. <img src="data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7" class="smilie smilie--sprite smilie--sprite1" alt=":)" title="Smile :)" loading="lazy" data-shortname=":)" /> </p><p></p><p>By the way, take a look at current rates for money market funds, insured taxable or muni bonds, mutual fund performance over the last few years, etc. You might be surprised at the opportunity costs, not that I'm advocating their inclusion in the cost of keeping your cows..</p></blockquote><p></p>
[QUOTE="Arnold Ziffle, post: 176441, member: 43"] OBB, your first comment on this thread seemed pretty believable to me --- you said you could [u]winter the cow[/u] for $150 and that sounded plausible to me, for central Oklahoma. The cost for merely wintering a cow for 2 or 3 months in Ok. is a lot different than the costs most folks herein are writing about, so your subsequent comments are what throw most of us for a loop, I imagine. In computing their costs most folks figure a charge for depreciation on equipment, fencing, purchased cows & bulls, building, etc. (less expected salvage value). And the list could go on. You may not have to incur those high dollar costs in any one particular year, but over time you sure will, so the amortization of such costs really has to enter into the computation of cattle keeping cost. I think to do otherwise is something akin to Enron accounting fantasy. And to really get an accurate picture you probably should add in the costs that you have avoided simply by bartering for goods & services. Something else to consider, and that is putting in a cost for pasture and facilities use of at least the amount that you would have to pay to rent comparable ground in the area. In analyzing costs, not putting in a charge for land use, along with having no interest payments on land debt, can surely make an operation look more profitable than it really is. But I applaud you for doing whatever you can to keep you overall costs low and it sounds like you really are keeping them low for the time being. Your cost accounting is just a little deficient IMHO. :) By the way, take a look at current rates for money market funds, insured taxable or muni bonds, mutual fund performance over the last few years, etc. You might be surprised at the opportunity costs, not that I'm advocating their inclusion in the cost of keeping your cows.. [/QUOTE]
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How many cows to be full-time Rancher?
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