Idea--will it work?

[tncattle]

Was thinking of buying 10-15 open heifers that are ready to breed now and selling them in late winter or early spring as bred heifers. Tell me the pitfalls.

There is plenty of hay this year--that's not a problem.

 

[Kingfisher]

You got enough grass/hay?

 

[tncattle]

You got enough grass/hay?

More than enough--seriously

 

[a7 livestock]

Do you already have a bull or ai?

 

[denvermartinfarms]

Double post.

 

[denvermartinfarms]

This has never been a good idea IMO. The negitaves are, they don't all breed, a heifer good enough to even think about breeding will cost you over 1000$ (here), if they don't all breed your going to lose money on the ones that don't, because your buying them to big to big to be able to keep 5 months on hay without feeding, and take back to the salebarn for a profit.

Another problem I see with it is, you can make the same money by buying something smaller to feed, without investing as much.

What do 2nd stage heifers bring in your area? Here a heifer like that isn't going to bring over 1250$. And that is about the biggest downside to it IMO. I'm don't like the idea of investing 1000 to 1050$ and 5 months for 200$, and have to take expenses out of that.

I may be wrong, your market may be better suited for this, but here it don't work.

 

[tncattle]

This has never been a good idea IMO. The negitaves are, they don't all breed, a heifer good enough to even think about breeding will cost you over 1000$ (here), if they don't all breed your going to lose money on the ones that don't, because your buying them to big to big to be able to keep 5 months on hay without feeding, and take back to the salebarn for a profit.

Another problem I see with it is, you can make the same money by buying something smaller to feed, without investing as much.

What do 2nd stage heifers bring in your area? Here a heifer like that isn't going to bring over 1250$. And that is about the biggest downside to it IMO. I'm don't like the idea of investing 1000 to 1050$ and 5 months for 200$, and have to take expenses out of that.

I may be wrong, your market may be better suited for this, but here it don't work.

The bull is in place and is a proven breeder who has consistently thrown small calves that grow well. The heifers can be bought here for $1000 and I don't see bred heifer prices going down by then but obviously no one knows for sure. We have more than enough hay and even more stockpiled grass. Even if a tow or three don't breed we still could come out ahead. Buying lightweight calves and feeding never pencils out for me unless you can buy lots of calves but I still can't see making the
Same profit per head that the bred heifers will make. I know it's all a form of gambling to sown extent.

 

[denvermartinfarms]

What do you see the heifers bringing when you sell them?

 

[shaz]

I like it.

Herefords? Angus?

 

[Caustic Burno]

This has never been a good idea IMO. The negitaves are, they don't all breed, a heifer good enough to even think about breeding will cost you over 1000$ (here), if they don't all breed your going to lose money on the ones that don't, because your buying them to big to big to be able to keep 5 months on hay without feeding, and take back to the salebarn for a profit.

Another problem I see with it is, you can make the same money by buying something smaller to feed, without investing as much.

What do 2nd stage heifers bring in your area? Here a heifer like that isn't going to bring over 1250$. And that is about the biggest downside to it IMO. I'm don't like the idea of investing 1000 to 1050$ and 5 months for 200$, and have to take expenses out of that.

I may be wrong, your market may be better suited for this, but here it don't work.

I don't see that working well here either as I can get 800 dollars on a 6 month old heifer standing in the pasture.
The reason they draw a premium is they are buying a known commodity.
Buying breeding age heifers worth a dam here at the barn is going to run 1000 dollars and up and they are not going to bring you more than 1300 through the barn bred.
The exception to the rule is a tiger will fetch a premium up to 1800 or 2000 through the barn. The problem there is you had to pay a premium to get that heifer.

 

[backhoeboogie]

Buying low and selling high is the only way you will come out.

If you are at the sale barn and happen upon a good deal, you can buy low. How are you going to get a sure sale at the price you want?

 

[TexasBred]

Buying low and selling high is the only way you will come out.

If you are at the sale barn and happen upon a good deal, you can buy low. How are you going to get a sure sale at the price you want?

Yep. There's usually a reason a cow/calf sells below market.

 

[denvermartinfarms]

Often those short bred heifers would bring more here if they wern't bred.

 

[Kingfisher]

I don't see that working well here either as I can get 800 dollars on a 6 month old heifer standing in the pasture."
So the money is in buying young quality heifers and getting them in good shape to sell to fellows that will then breed them? That makes more sense especially if you have plenty of grass/hay. Less work. Less risk and maybe as much profit if they are fancy.

 

[denvermartinfarms]

I honestly see buying fewer 3rd stage cows, letting them calve, re breeding them and split them up and sell in 6 months, being a better deal.

 

[Dave]

Buy low, sell high, and get someone else to pay the freight and it works. It does work. But you need to figure the lowest market to buy at and the highest market to sell at. Tough to make it work on 10-15 head because that keeps you selling locally.

 

[backhoeboogie]

I don't see that working well here either as I can get 800 dollars on a 6 month old heifer standing in the pasture."
So the money is in buying young quality heifers and getting them in good shape to sell to fellows that will then breed them? That makes more sense especially if you have plenty of grass/hay. Less work. Less risk and maybe as much profit if they are fancy.

In '08 the market was upside down. Heavy heifers were bringing more per pound than lightweights. It was attributed to corn prices and corn shortages. I bought a whole bunch of lightweight heifers and came out really nice. Luck?

Kept 4 out of that bunch and they are in the herd now. Each has turned 4 calves. Could sell those 4 for way more than I paid for the whole bunch back when.

 

[jasonleonard]

Denver's idea was spot-on for me. I am not even a real cattleman, and I have been able to make some nice profits on heavy breds and pairs.
With feeder calves where they are at right now, any wanna- be cowman like me with a checkbook,some pasture or lots of hay, and a little bit of an eye for buying cows....can make some money.

 

[denvermartinfarms]

Denver's idea was spot-on for me. I am not even a real cattleman, and I have been able to make some nice profits on heavy breds and pairs.
With feeder calves where they are at right now, any wanna- be cowman like me with a checkbook,some pasture or lots of hay, and a little bit of an eye for buying cows....can make some money.

you can buy a decent 3rd stage cow for 1350$ it calves in about 2 months, sell the calf at 4 months old at 350lbs for 600 or 700$ and then re sell the cow re bred in the 2nd for 1200$ or maybe more. I. Some areas the calf might bring a little less than that, but those numbers work here. IMO that's a heck of a grazing bill! I also understand there is alot of risk in buying cows and letting them calve, but I don't think there's any side of this business that doesn't involve a pretty good amount of risk.

 

[tnwalkingred]

TnCattle,

I hope you are able to make money with what you're trying to do. I have a group of heifers I just posted on the internet to sell for someone looking to do exactly what you are. If you can buy them now for 900-1000 dollars and sell them for 1500 in the spring I believe there is money to be made. All the reports I've read say replacements are going to be high for at least two more years. Let us know how it works out.