Hypothetical financial question

[Bigfoot]

Not aimed at Ranchman:

Somebody knows something I don't, if they are hiring labor to raise/care for cattle, and have something left over for themselves. Once you've reached the limit of what you and family can do, it's a great great big jump to the next level.

Like anybody here raises tobacco but here goes------- I raised 16 acres of Dark tobacco for many years. Goal was to hire as little help as possible. I can promise you I made more total profit than the man raising 100 acres. He kept the road hot in his truck, while I was working in the tobacco patch. He was leasing ground, leasing pounds (actually acreage on dark), leasing barns, and forking cash out the back window to hired hands all day everyday.

I hear ya. I appreciate all the feedback. Just out of curiosity what's the profit per acre on tobacco?

I wish I knew. The only way to raise it now, is to work for the tobacco companies, and I've got bad blood towards them going back generations.

 

[Brute 23]

One of the biggest problems I see with people in the cattle business, or any small business really, is they aren't good about keeping records and really seeing what makes money and what doesn't. Their efficiency is very poor. They tend to get sucked in on the thought that they have to build their own fences... but they don't factor in that they neglected some thing else that may cost them that much or more.

 

[Stocker Steve]

One of the biggest problems I see with people in the cattle business, or any small business really, is they aren't good about keeping records and really seeing what makes money and what doesn't.

Our local farm expert tracks profit per cow. :? So I am buying up all the biggest 1600 to 2000 pound girls I can find. ;-)

 

[Kell-inKY]

Hypothetically speaking say a person made $50k at their 9-5:00 job and $50k net profit on the farm, while having $2000 a month in living expenses. Would it be financially smarter to hire an employee for $20k and keep said job or quit job to keep up with farm work load? What's your opinion and why? Thanks

Is your 9-5 a soul crushing slog through the week that leaves you mentally drained and nearly unable to drag yourself back to the prison you call work every morning, and makes building fences seem like an oasis in a sea of turds? Just asking...

Only people here that make money (that I know of) on cattle are those who row crop big time and can use that equipment and crop residue to make a profit without any more inputs. But I'm just a small time beginner who's knowledge is pretty limited.

That, and the people thinking out of the box and going full on organic with chickens, pork, vegetables etc. But that is a real lifestyle commitment there.

 

[skyhightree1]

I sure wouldn't depend on farm income to pay the bills year in and year out. Working while you can is the name of the game, I'd work both jobs as long as possible myself. Anyone can work 12 to 18 hours every day and get ahead. It's hard to get ahead working a 40 hour week unless your a banker or some other suit wearer.

:tiphat: Great statement

 

[backhoeboogie]

they aren't good about keeping records and really seeing what makes money and what doesn't.

T. Rowe Price Institutional Large Cap Growth Fund - 11.70 % gain since January 1 . No losses there

 

[TexasBred]

they aren't good about keeping records and really seeing what makes money and what doesn't.

T. Rowe Price Institutional Large Cap Growth Fund - 11.70 % gain since January 1 . No losses there

If it can hold that til next January 1 you'll have a real 11.70% gain.

 

[backhoeboogie]

they aren't good about keeping records and really seeing what makes money and what doesn't.

T. Rowe Price Institutional Large Cap Growth Fund - 11.70 % gain since January 1 . No losses there

If it can hold that til next January 1 you'll have a real 11.70% gain.

I guess I am confused TB. It is now 13.17% $511,396 is now at $578,746.85 if it were cashed in today. I see that as a 13.17% gain as of right now. It could be more or less come next January. A person could cash in and jump in to a CD or bond fund. That bond fund starts now.

 

[TexasBred]

T. Rowe Price Institutional Large Cap Growth Fund - 11.70 % gain since January 1 . No losses there

If it can hold that til next January 1 you'll have a real 11.70% gain.

I guess I am confused TB. It is now 13.17% $511,396 is now at $578,746.85 if it were cashed in today. I see that as a 13.17% gain as of right now. It could be more or less come next January. A person could cash in and jump in to a CD or bond fund. That bond fund starts now.

Returns are always stated in annualized figures. Not monthly or quarterly. Returns like that in that period of time would be about a 52% +/- annual yield. Actually it should earn about $60,000 in a year (11.7%)

 

[backhoeboogie]

Returns like that in that period of time would be about a 52% +/- annual yield.

I've got my fingers crossed. My year 2025 fund and my GIC fund aren't doing very well. But they're safe.

 

[TexasBred]

Returns like that in that period of time would be about a 52% +/- annual yield.

I've got my fingers crossed. My year 2025 fund and my GIC fund aren't doing very well. But they're safe.

Sounds good. ;-)

 

[midTN_Brangusman]

What did you decide to do RM?

I work fulltime and have a local retired man that goes to a couple sales for me during the week and buys for me. He doesn't charge much because honestly he enjoys it. Sure it makes for some long days and weekends at times but when you sell a load its good side money.

I have not had good luck with order buyers. In my area, they all seem to be in cahoots. Maybe its just my paranoia :lol:
I could not ever see myself quitting my day job unless I averaged well over 100k per year "profit" in cattle.

 

[RanchMan90]

What did you decide to do RM?

I work fulltime and have a local retired man that goes to a couple sales for me during the week and buys for me. He doesn't charge much because honestly he enjoys it. Sure it makes for some long days and weekends at times but when you sell a load its good side money.

I have not had good luck with order buyers. In my area, they all seem to be in cahoots. Maybe its just my paranoia :lol:
I could not ever see myself quitting my day job unless I averaged well over 100k per year "profit" in cattle.

Keepin the ol 9-5, it's too easy of work to leave it. Part time hired help has taken a burden off my shoulders. I still do the daily feeding and doctoring in the evenings. I like to buy my own cattle also but my buyer saves me $100 a head at Eastern and southeast sales. That goes a long way to pay hired help. Delegating has been a win so far.

 

[midTN_Brangusman]

quote]
Keepin the ol 9-5, it's too easy of work to leave it. Part time hired help has taken a burden off my shoulders. I still do the daily feeding and doctoring in the evenings. I like to buy my own cattle also but my buyer saves me $100 a head at Eastern and southeast sales. That goes a long way to pay hired help. Delegating has been a win so far. [/quote]


Cant say I blame you there, glad to hear things are going well! Are you buying breds or stockers?

 

[RanchMan90]

Stocker heifers are my niche right now. It's always changing though.

 

[midTN_Brangusman]

Stocker heifers are my niche right now. It's always changing though.

I heard that!