Idea--will it work?

[tncattle]

We wouldn't be buying at sale barn, there are nice open heifers ready to breed in my area for $1000. I haven't seen any bred heifers in my area going for less than $1600 and most are $1700-$1900. I don't see prices going down anytime soon of course anything can happen but there is always some risk involved. Here's the real catch, I have to convince my friend that this is worth trying. I'm 45 and he's 75. It's his farm, facilities, hay and equipment. I do all his shots, vaccinations and help him anytime he's doing anything with the cattle and also help when I can with other farm chores. I also watch his place for him when he goes out of town. We developed a good friendship and I've never expected pay for any help because I want to do it and consider him a good friend and don't expect any pay at all. Some of you might have some more insight after reading this post. I was just thinking split the heifer cost 50/50 and he gets the 60% of the profit-- (hope for profit . Maybe that still isn't fair for him?

 

[denvermartinfarms]

I understand, when convincing someone you sometimes have to go with what looks best on paper instead of what might be better.

If it works out that you can buy heifers for 1000$ and sell them 5 months later for 1700$ with a 2nd stage and 1 tag on them, I will be impressed and have a new business idea, I'm not doubting you, just seems that everyone in the country down there would be doing it, I maybe they are, I don't know.

I would say giving your guy 60% of the profit is just about right, with what you do for him.

 

[salebarn junkie]

I've had good luck buying run down 1st stage 4 and 5 year olds at slaughter price 1 or 2 at a time I try to get the same frame and color sell them as 3rd stage in a big group. A dry cow on good pasture usually slicks up pretty good. I don't have to worry what there breed to because there gone before they calve. If one slips a calf it usually gains enough weight to still make a decent profit

 

[TennesseeTuxedo]

We wouldn't be buying at sale barn, there are nice open heifers ready to breed in my area for $1000. I haven't seen any bred heifers in my area going for less than $1600 and most are $1700-$1900. I don't see prices going down anytime soon of course anything can happen but there is always some risk involved. Here's the real catch, I have to convince my friend that this is worth trying. I'm 45 and he's 75. It's his farm, facilities, hay and equipment. I do all his shots, vaccinations and help him anytime he's doing anything with the cattle and also help when I can with other farm chores. I also watch his place for him when he goes out of town. We developed a good friendship and I've never expected pay for any help because I want to do it and consider him a good friend and don't expect any pay at all. Some of you might have some more insight after reading this post. I was just thinking split the heifer cost 50/50 and he gets the 60% of the profit-- (hope for profit . Maybe that still isn't fair for him?

Shoot me an email and tell me more about this set-up. I'm intrigued.

 

[Isomade]

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.

I know several guys that make a good living doing exactly what you are talking about, and that's all they do. Buy good quality heifers and make sure you have sure enough low BW bulls so you have a good reputation.

 

[H and H]

Its works OK, really depends on how risk tolerant you are. I have been doing this the last few years. I tried the 'buy low' approach. Average paid was 840/head, synched AI'd to Mytty, and averaged 1550 nine months later. Pretty good turn.

Last year I decided to go with a fancy one-iron set of heifers, paid 1050 for them in the spring, synched AI'd, drought hit, no one locally was really expanding their herd (most were hard culling and downsizing), had a $1400 offer on them and decided to keep them. Glad I did, calved them out, have $900+ calves to sell and 2nd calf heifers are now worth $1800.

Here are my observations: it probably won't make you rich. I have had to sell high headed wild open ones, for a loss. I have had them slough a calf. I have had to calf them out instead of selling when the market wasn't right. However, in the long run, they are paying their own way, I am growing a bigger herd and building equity.

My recommendations: if you're able, play with cash - if there's no bank note, there are more options along the way. Get the best quality heifers available (one iron, one draft), definitely AI, don't skimp on the bull, vaccinations, or vet. Have a tight calving window, and fatten the ones that don't make the cut.

It hasn't been easy. I am the first to admit that I'm a multiplier, definitely not a 'true breeder' however I do try to get the highest quality commercial heifers I can. Never know when the market, or mother nature, is going to wreck the best laid plans and you may have to calve them and own them for a few years.

 

[skeeter swatter]

Don't see it making much money. If you buy now and sell in March/April? she's still only shortbred and you have a whole winters feed in her.

 

[johndeerefarmer]

You are going to need some good hay and protein supplements for those heifers. Hay needs to be 11-12% protein and a TDN of upper 60's. I make 12% protein coastal with a TDN of mid 60's but not upper 60's, so you will also have to feed a supplement.

My hay costs me $25 bale just for the fertilizer, then add the weed killer, fuel and equipment costs and the price for my 4x5's go thru the roof. So by the time I fed by expensive hay, and a supplement no way would I buy heifers, feed them my expensive hay and then sell them.

Now if I was keeping them as herd replacements that might be a different story