Jogeephus
Well-known member
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. :???:
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. :???: