I should have been a cowboy

[Jogeephus]

Was asked to do an analysis on a cattle operation and realized I've missed my calling.

Arrangement worked like this. 40K salary plus commission of 50% of all sales. Free house but cowboy had to pay utilities. Health insurance covered by farm. Brand new 4-wheel drive truck provided along with a 1 ton for larger hauls. Farm paid insurance. Gas and diesel was provided by farm. All mechanical work, fertilizer and any additional help needed was provided by farm. New tractors and hay equipment, mowers, baler, tedder and harrows provided by farm. Office and utilities provided by farm. Carrying capacity of farm was roughly 1700 head but this was the ultimate goal and as per my visit they had been doing this for five years and had less than 100 head. All livestock bought by farm. They also decided they'd get into the PB business and bought a VERY nice bull along with 20 high bred heifers at an average cost of $2500/head. Over a 1/3 of the permament pasture was set out in hybrid bermuda grass for hay. Basically the property was self sustaining as far as feed requirements went but they just couldn't seem to make a profit so they asked my opinion of why they weren't making any money. :???:

 

[3waycross]

Was asked to do an analysis on a cattle operation and realized I've missed my calling.

Arrangement worked like this. 40K salary plus commission of 50% of all sales. Free house but cowboy had to pay utilities. Health insurance covered by farm. Brand new 4-wheel drive truck provided along with a 1 ton for larger hauls. Farm paid insurance. Gas and diesel was provided by farm. All mechanical work, fertilizer and any additional help needed was provided by farm. New tractors and hay equipment, mowers, baler, tedder and harrows provided by farm. Office and utilities provided by farm. Carrying capacity of farm was roughly 1700 head but this was the ultimate goal and as per my visit they had been doing this for five years and had less than 100 head. All livestock bought by farm. They also decided they'd get into the PB business and bought a VERY nice bull along with 20 high bred heifers at an average cost of $2500/head. Over a 1/3 of the permament pasture was set out in hybrid bermuda grass for hay. Basically the property was self sustaining as far as feed requirements went but they just couldn't seem to make a profit so they asked my opinion of why they weren't making any money. :???:

I realize that this doesn't happen very often but.......i am speechless!

 

[cross_7]

Was asked to do an analysis on a cattle operation and realized I've missed my calling.

Arrangement worked like this. 40K salary plus commission of 50% of all sales. Free house but cowboy had to pay utilities. Health insurance covered by farm. Brand new 4-wheel drive truck provided along with a 1 ton for larger hauls. Farm paid insurance. Gas and diesel was provided by farm. All mechanical work, fertilizer and any additional help needed was provided by farm. New tractors and hay equipment, mowers, baler, tedder and harrows provided by farm. Office and utilities provided by farm. Carrying capacity of farm was roughly 1700 head but this was the ultimate goal and as per my visit they had been doing this for five years and had less than 100 head. All livestock bought by farm. They also decided they'd get into the PB business and bought a VERY nice bull along with 20 high bred heifers at an average cost of $2500/head. Over a 1/3 of the permament pasture was set out in hybrid bermuda grass for hay. Basically the property was self sustaining as far as feed requirements went but they just couldn't seem to make a profit so they asked my opinion of why they weren't making any money. :???:

so why aint they making money ?

 

[regolith]

So if there's 100 cows on a farm that can carry 1700 - what do they do with the rest of the grass? And why do they need to come to you to ask why it isn't working?

As for wages - I saw a job that I did in '06 on a salary of 35K advertised last year (five years later) with a salary of 50K attached. It's incredible how wages have gone up in that time frame.

 

[Jogeephus]

Well their intent was to increase the herd and make a profit but more importantly take advantage of a tax advantage given to farmers. Unfortunately, the "cowboy" decided it was easier to buy and sell cows each week. Buy one this week for $500 and sell it next week for $500 and he'd net a $250 bonus. With his past government employment I'm sure he thought this was a sensible way of making a steady profit. As for the 20 registered heifers I could only find six so God only knows where these went. With all the money they spent on fertilizer you'd have thought they wouldn't have to buy hay - which they did. Well, the cowboy is now on unemployment after my scathing review. It just floored me when I saw the operation and how it was run when you consider the potential of what could have been had the piece of dirt cared about anything but himself. I wish someone would have given me an opportunity like that when I was younger. It could have been sweet for all concerned.

 

[Howdyjabo]

If hes looking for a replacement I know of several good guys he could hire.

 

[pdfangus]

Unfortunately at one of my jobs I followed a guy like that. Boss questioned every expense as he was just waiting for me to find a way to stick it to him again. Over time he mellowed some and realized that not everyone was like the other guy but it was like pulling teeth to get him to try anything outside his comfort zone and his comfort zone was thrity years behind the times.

My son is working for a guy like that now....
Owner has a series of inept allegged farm managers and thieves.
My son has been there for quite a few years now and is just beginning to get a little fredom to manage.
he has to prove every concept before he can change anything though. It seems to be getting a little better for him now.
Agriculture has more that its share of crooked folks just like any other walk of life. and some folks just can not pass up the opportunity to steal just a little.

 

[Jogeephus]

Yes, following behind someone like that would be difficult. And yes there are thieves in any field. What blows my mind is how this guy couldn't see the potential he could have made had he done right. They were more than generous with him and he goes and bites the hand that feeds him. Unbelievable. They are out of the cow business now.

 

[john250]

An ambitious man would have taken a moment to discuss the advantages of the "Imbalancer" line of cattle r.e. losing money .

 

[cow pollinater]

Cattle is never a good industry for absentee/ignorant owners... Period... If they didn't have enough sense to see what was coming then it was time to get out regardless of why they got in in the first place.
That doesn't keep me from thinking that the guy who did that to them should be shot. :nod:

 

[ALACOWMAN]

Yes, following behind someone like that would be difficult. And yes there are thieves in any field. What blows my mind is how this guy couldn't see the potential he could have made had he done right. They were more than generous with him and he goes and bites the hand that feeds him. Unbelievable. They are out of the cow business now.

rich city folks that want to play cowboy but didnt read the instruction manual first... most figure what the he@# i got money i can buy the land and costume :cowboy:

 

[john250]

A very talented surgeon from Louisville owned some hog barns in Indiana back in the '80's. And land and cattle.
The hogs are gone now. A son has actually done pretty well on the cattle, as far as breeding and pasture management. I doubt his bottom line could be much better than anyone elses in the cattle business the last few years, but his bottom line doesn't determine his lifestyle like most folks.
edited to add:
It remains true--if want to make a small fortune farming, start with a large fortune.