Is it worth it financially?

[herofan]

A 5ft roll of hay around here is around $25 for the best, but there is always deals. We found a guy who is selling them for $6 each because they were three years old, but they had been kept in the dry! We average about 7 rolls per cow during the average winter.

 

[Bigfoot]

I've been raising cattle in Ky for 35 years. Every year I wonder why I do it. Financially it makes no sense what so ever. A small operation here would have to be strictly for enjoyment. Keep every receipt, figure depreciation, and fuel. You will see quickly its just a hobby.

 

[Stepbystep]

A 5ft roll of hay around here is around $25 for the best, but there is always deals. We found a guy who is selling them for $6 each because they were three years old, but they had been kept in the dry! We average about 7 rolls per cow during the average winter.

Newbie here so excuse the ignorance but each cow eats you through 7 rolls of hay so 10 cows is 70 rolls?

 

[Old_man_emu]

I could go on for hours on this subject.
One of the most important things I would say is to get yourself as educated as possible. Because I manage a farm and I am trusted with someone else's money I have made it my responsibility to know the who what when where why and how of every input into the business. I have previously used consultants with the attitude "they have plenty of money, they can afford it". So education is a big part of my job and its great for self development.
It is also great to find a mentor or 2. I find the best ones just naturally impart knowledge without even realising, you may not agree with everything they say but they can help you can to form your own philosophy.
Just my :2cents:

 

[Aaron]

I know we've got the thread about whether one could make a living, but I'd like to give my specific situation and get comments. I have no intentions of getting rich or even making a living with cattle; I already have a good job. But I have had changes in my life and would like to get into some cattle for enjoyment and supplemental income. I think it could eventually be profitable, but there are mixed opinions from friends.

I have 130 acres paid for and half is in pasture. I would like to build a cow/calf operation with beef cattle. I am currently buying calves from 4 to 6 months old averaging $300 each to raise as the mothers. I would eventually like to have a herd of 20 cows. I feel 20 would be manageable both for me and the land. No money will be borrowed. I believe I can have around 140 rolls of hay from my farm, but I don't have the equipment for hay, like mowers and rollers. So, I rely one others to manage the hay for a portion of it as payment. I will probably have to buy some hay.

I live in KY, so we don't usually have extreme summers and winters like I hear about in other places. Does this sound like I could make a profit in a few years? I say yes, but there are always those who say, "You can't make anything fooling with cattle." That always makes me wonder, though, why they have done it for 30 years.

Some make money. Many subsidize their operations with off-farm income, in which case it is a hobby...a very demanding and expensive one!

But I don't hear too many cattlemen wishing for the chance to retire, like someone working in a cubicle on the 27th floor. Use to be freedom 55, the next generation wants it to be freedom 45. Think there are a lot of people who hate their jobs?

 

[andybob]

The financial planning course from the International Centre For Holistic Management is worth studying, looking at costs in an Holistic way instead of more traditional planning, using contractors instead of owning machinery that is only used for a few weeks per year as already mentioned is a typical cost saving in this approach to financial planning.

 

[Stocker Steve]

Some make money. Many subsidize their operations with off-farm income, in which case it is a hobby...a very demanding and expensive one!

Profit is a taxation calculation. You should be focusing on your broader goals. Once you have accumulated some equity - - I think you need to focus on net worth and quality of life first, and look at taxable income second.

 

[Boss Cowman]

the people I see that don't make money are people who can't control their inputs. The cattle WORK for you, be it 10 or 1000.

 

[Black and Good]

My dad always told me "There are two things you had better love 1. Your cattle 2. Working for .50 cents an hour. " LOL. When I was young I used laugh and say "Whatever". Now its HUH. I do really enjoy my cattle. So,with me it's not always the money. One last thing. My dad used to always say"It's just something that gets in your blood". I think my Dad is pretty smart. What do you all think.

 

[TennesseeTuxedo]

I think your dad is spot on with his assessment of the situation.

 

[dun]

My dad always told me "There are two things you had better love 1. Your cattle 2. Working for .50 cents an hour. " LOL. When I was young I used laugh and say "Whatever". Now its HUH. I do really enjoy my cattle. So,with me it's not always the money. One last thing. My dad used to always say"It's just something that gets in your blood". I think my Dad is pretty smart. What do you all think.

Except for the rediculously high wages of .50 cents an hour he's spot on.

 

[Isomade]

My dad always told me "There are two things you had better love 1. Your cattle 2. Working for .50 cents an hour. " LOL. When I was young I used laugh and say "Whatever". Now its HUH. I do really enjoy my cattle. So,with me it's not always the money. One last thing. My dad used to always say"It's just something that gets in your blood". I think my Dad is pretty smart. What do you all think.

Except for the rediculously high wages of .50 cents an hour he's spot on.

:lol: :nod:

 

[Caustic Burno]

My dad always told me "There are two things you had better love 1. Your cattle 2. Working for .50 cents an hour. " LOL. When I was young I used laugh and say "Whatever". Now its HUH. I do really enjoy my cattle. So,with me it's not always the money. One last thing. My dad used to always say"It's just something that gets in your blood". I think my Dad is pretty smart. What do you all think.

Except for the rediculously high wages of .50 cents an hour he's spot on.

Pretty smart man cept he left out working from can see to can't.
I think it is not in the blood near as much as it used to be.
The feed store guy said his average customer is 60+.
I know around here all you see failing the IQ test is old men.

 

[bigbull338]

theres 1 more thing ii havent seen mentioned here.an thats your born with cattle in your blood like i was.or you grow to love an understand the cattle business an all the ups an downs,droughts floods heatwaves winter weather an whatever else comes along with cattle.i always say i have manure in my vains insted of blood.

 

[herofan]

If it's difficult to make money with prices so high, it must be murder when prices are down or even average.

 

[Anonymous]

Sure prices are at record highs but so are costs.

 

[Isomade]

If it's difficult to make money with prices so high, it must be murder when prices are down or even average.

You have to figure in the input inflation. 10 years ago here the average bale of hay was $20-25 today $35-40. Diesel $1 today $3.75. Bulk feed $150/ton today $250. The price of calves don't mean squat, it's the margin you have to pay attention to. If calves are $200/cwt and inputs are double you don't gain a thing.

 

[Old_man_emu]

sometimes there's as much to be made in savings and efficiency as there is in trying to squeeze more money out of calves for example.
I sell direct to a butcher so he selects the animals he wants in my yards and he pays transport to the abattoir and noone else gets a slice of the pie, it can be as much is 10% paving per animal.
Increasing pasture utilisation and avoiding slashing or mulching excess grass that the cows leave behind saves on fuel and makes your grass go further.

 

[herofan]

If it's difficult to make money with prices so high, it must be murder when prices are down or even average.

You have to figure in the input inflation. 10 years ago here the average bale of hay was $20-25 today $35-40. Diesel $1 today $3.75. Bulk feed $150/ton today $250. The price of calves don't mean squat, it's the margin you have to pay attention to. If calves are $200/cwt and inputs are double you don't gain a thing.

Everyone where I live says that cattle are "high" now with a bit of "wow factor" in their voice, but I suppose that if you count inflation, it's no big deal. In other words, cows are higher, but so is hay, diesel, etc.

 

[Old_man_emu]

If it's difficult to make money with prices so high, it must be murder when prices are down or even average.

You have to figure in the input inflation. 10 years ago here the average bale of hay was $20-25 today $35-40. Diesel $1 today $3.75. Bulk feed $150/ton today $250. The price of calves don't mean squat, it's the margin you have to pay attention to. If calves are $200/cwt and inputs are double you don't gain a thing.

Everyone where I live says that cattle are "high" now with a bit of "wow factor" in their voice, but I suppose that if you count inflation, it's no big deal. In other words, cows are higher, but so is hay, diesel, etc.

perhaps the prices aren't so much high as they are just catching up with inflation.
I'm doing my best to become a price maker rather than price taker